US report sounds alert over Chinese port companies

The United States is perhaps as concerned as India about the attempts made by Chinese companies to participate in port projects in the country.

A report published by the Strategic Studies Institute of the United States Army War College in July this year warns that China, to fulfil its strategic goals, has aggressively started participating in port projects situated across the Indian Ocean, the South China Sea, the Strait of Malacca and the littorals of the Arabian Sea and Persian Gulf.

The report suggests that these ports or the "string of pearls" might prove to be a challenge for the United States in the region.

The US War College report says that the dragon's motive in participating in these port projects is to secure its oil supplies which are mainly sourced from Africa and the middle-east and shipped home through this sea route.

"Some of these Chinese 'pearls' are situated in our neighbourhood. They include the Gwadar Port in Pakistan, Chittagong in Bangladesh and the Hambantota Port project in Sri Lanka," an official told Business Standard, confirming that the Indian government too was wary of finding Chinese companies constructing ports in the neighbourhood.

Security agencies in India put a spanner in the works of China Harbour Engineering Company and Hutchisson Ports when they tried to enter Indian shores recently.

Pointing out that in 2004, China had leapfrogged Japan to become the world's second largest oil importer, the US report says that roughly 40 per cent of all new world oil demand is attributable to China's rising energy needs.

"Secure access to foreign oil resources will be necessary both for continued economic growth, the cornerstone of China's domestic stability, and the survival of the Chinese Communist regime," the report said, highlighting the importance of securing the sea route for China.

Although China seeks to obtain secure supply lines and reduce dependence on a limited number of energy suppliers, sea transport from the Middle East and Africa will remain the primary mode of petroleum import for the foreseeable future, the report says.

India is primarily concerned about the Chinese participation in the Gwadar and Hambantota projects, situated in Pakistan and Sri Lanka respectively.