"China and Djibouti are discussing about a logistics centre. It is aimed to provide better facilities so that the personnel on Chinese vessels can get better rest and replenishments," Chinese foreign ministry spokesman Hong Lei said responding to US claims that China is building its first military base in Africa to "extend its reach".
The logistics centre will enable Chinese vessels and personnel on escort duty to better fulfil international obligations especially on UN peacekeeping missions, Hong said.
Chinese defence ministry also came out with a similar reaction today.
Hong said since 2008 China has dispatched over 60 vessels in 21 missions to the Gulf of Aden and waters off Somalia for escort missions to counter piracy as per UN resolutions.
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"During these operations we find they meet difficulties in getting rest and replenishment and supplies. Therefore we need to provide better service in this regard. China and Djibouti are friendly countries. Now we are having consultations on building up these logistics facilities," he said.
In the Arabian Sea, China has taken over the Pakistani port of Gwadar as part of its development of the USD 46 billion China-Pakistan Economic Corridor.
China in the past has consistently denied building military bases outside its territory.
But with its first refurbished aircraft carrier in operation and with two more under construction, analysts say that China is on the lookout for bigger port facilities in Asia and Africa.
Analysts say that military base in Africa would be cheaper than temporary arrangements for docking ships at Djibouti.
It comes with an airfield which would enhance Chinese military's intelligence gathering in Africa and parts of the Middle East enhancing Beijing's stature as a protector of African nations.
China has already cemented its foothold in the Indian Ocean by signing contracts with the UN-backed International Seabed Authority (ISA) in 2011 to gain rights to explore polymetallic sulphide ore deposit in Indian Ocean over the next 15 years to explore 10,000 sq km of international seabed.