The Navy chief also reiterated India's position on South China Sea saying the country was for freedom of navigation in commerce and if a situation develops, the Navy would protect the nation's maritime interests.
"It is an aspect that we monitor very closely because there are certain implications," Dhowan told reporters when asked about Chinese involvement in developmental activities in ports around India.
Chinese cooperation with Sri Lanka has reached an all- time high with substantial investment from China in Sri Lankan infrastructural expansion, including a major project in Sri Lankan port in Hambantota.
China has also taken over a port in Pakistan and is now developing it.
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The Naval chief played down the presence of Chinese ships and submarines in the Indian Ocean saying they were for anti-piracy operations.
"The PLA Navy has been operating in the Indian Ocean since 2008 because a fair amount of their trade and oil passes and transits through these waters," he said adding they are part of the anti-piracy escort force.
He also said China has occasionally deployed a submarine which has been in water for last 3-4 months.
Lanka too had played down the docking of Chinese submarine in its port saying it was for replenishment.