China’s Return to Port Near Persian Gulf Sets Off Regional Alarm Bells

In a decision raising fresh concern about China’s ambitions in South Asia and the Indian Ocean, Pakistan has agreed to hand over to Chinese control a deep-water port, strategically located near the mouth of the Persian Gulf.

The Pakistani cabinet decision to transfer management of Gwadar to a Chinese government-owned company closes a circle for Beijing, which put up most of the funding a decade ago to build the facility in the first place.

During the construction phase, China periodically dismissed reports that the port would be used for People’s Liberation Army Navy (PLAN) activity, fears that appeared unfounded when upon the port’s completion in 2007, Pakistan signed an agreement with Port of Singapore Authority (PSA) International to run it for 40 years.

But Islamabad has complained about slow progress in expanding the operations and, six years later, has turned once again to its “all-weather friend,” China.

For China, whose Chinese Overseas Port Holdings will now run the port, Gwadar offers a host of advantages.

[link to stratrisks.com]