China, although an outside power but every-time seeking to carve out a role for itself in the Indian Ocean and intending the same this time, China wants to turn the huge Indian Ocean into the China Ocean.
However, to implement this vast plan(when it comes to investment)China is investing heavily in several infrastructure projects. The China– Pakistan Economic Corridor (CPEC), a giant framework venture, which interfaces China’s western domains to the Indian Ocean like Sri Lanka’s ports of Colombo and Hambantota, which give Beijing a trade outpost into the Indian Ocean.
Further, the new report is rolling that Beijing is turning Maldives into another trading outpost with the acquisition of land there, and the signing of a free trade agreement. Talking about the same in an interview with Sputnik, Alexei Kupriyanov said that former President and opposition leader Mohamed Nasheed is asking India to interfere in the Maldives crisis.
According to the Kupriyanov, “India has no win-win strategy here. It could either resort to military force and alienate regional neighbors Sri Lanka, Bangladesh and Nepal and face an international backlash, or it could try to seek a peaceful deal with Yameen and then try to get rid of him during the next elections. In either case, India’s image would suffer.”
“China, for its part, is ramping up its economic presence in the Maldives and wants to make sure that oil tankers from the Gulf pass unhindered across the Indian Ocean. Therefore, it would prefer to see Yameen stay in power for another term to ensure stability”, he added.
Meanwhile, these new development have annoyed the country so much for the couple of reasons like economic. To flood the Indian market both Maldives and Sri Lanka can sever as a base for China. The other reason have irked India is geopolitical. China has frequently declared that it doesn’t plan to use the port for military purposes.
When we look into the past four years China and its submarines have begun and frequently showing up in the Chinese-operated South Container Terminal in the port of Colombo. Rather India’s protests, which included join naval exercises with America, Japan, and Australia.
Still, after that it seems very unclear whether the China will succeed in turning the Indian Ocean into the China Ocean.
And, here is the table showing the raises geopolitical risks:
|Index/Fund||12-month Performance||2-year Performance|
|IShares China (FXI)||22.29%||53.32%|
|Global X MSCI Pakistan (PAK)||-28.42%||3.93|
|iShares S&P India 50 (INDY)||20.48||56.99%|