China is also known as the second-largest economy in the world with a 17 trillion-dollar GDP. On October 1, 1949, the People’s Republic of China (PRC) was founded, and India was the first non-communist nation to open an embassy there. India and China established diplomatic ties on April 1 of that year. In 1954, the Panchsheel (Five Principles of Peaceful Coexistence) was jointly formulated by the two nations. 

The first of April 2020 celebrated the 70th anniversary of India and China’s establishment of diplomatic ties, which date back to 1950 and continue to the present.

Chinese incursions at several locations concurrently in Ladakh in 2020, which seemed to be intended to create a new status quo on the Line of Actual Control (LAC) separating Indian and Chinese-controlled territory, marked the turning point in the cycle of rival security policies on the border.

The Indian political establishment downplayed the incursions, but the forces of China and India moved quickly to fortify their positions close to the border. Multiple rounds of military negotiations were held, but they only made sluggish progress.

20 Indian troops and an undetermined number of Chinese troops were killed in a skirmish on June 15, 2020. Both sides strengthened their positions in the weeks that followed as they competed for positional advantage.  

The Indian Government’s response to the Chinese land grab was to threaten the entire bilateral relationship. In a reversal of decades of policy, it argued China has demolished the painstakingly constructed confidence-building measure on the borders, and so the relationship could not continue as normal until the border crisis was resolved. It imposed new restrictions on Chinese investment in India even as overall trade continued to increase and adopted a more assertive diplomatic posture. 


China is trying to build an economic trade route to be an economic superpower. China strategically is using countries like Djibouti, Sri Lanka, Myanmar, and Pakistan with weak economic situations to surround India. Like in Sri Lanka, The Chinese have the Hambantota International Port which was leased to Chinese state-owned China Merchants Port Holdings Company Limited in 2017 as Sri Lanka struggled to repay its foreign creditors, which included China, India, Japan, and some private lenders. In Pakistan, they have the Gwadar Port on a 40-year lease. 

Secondly, China spent billions of dollars on building oil refineries, high-speed cables, railway lines, and gas pipelines to build an alternative trade route around India. 

China is building an extremely strategic railway line from London to China and another railway line from China to Iran passing through Kyrgyzstan, Uzbekistan, and Turkmenistan, and ending at Tehran in Iran. 

In all of this, The Indian Ocean plays a prominent role.

Importance of the Indian Ocean

The Indian Ocean holds 16.8% of the world’s proven oil reserves and 27.9% of proven natural gas reserves.

Its economy accounted for 35.5% of global iron products and 17.8% of world gold products in 2017.

The Region was also responsible for 28% of global fish capture in 2016, and there has been a continuous increase in fish captures in the region since the 1950s.

This has created the basis for export industries in a number of countries.

It’s home to major sea routes connecting the middle east, Africa and East Asia with Europe and America.

The String of Pearls Theory

China gas very strategically emerged as one of the most important trading partners of the Indian Ocean Region and it accounts for 16% of its total good state as of 2017 in the past two decades China has been building infrastructure projects in Sri Lanka, Myanmar, Pakistan, and Djibouti because of all these regions fall in the Trade route of China’s oil imports and exports to Africa Middle east and Europe. So, China now has Gwadar port in Pakistan, Hamburg port in Sri Lanka, Djibouti’s Naval base, and Myanmar’s Quake Few Post.


When we talk about strategic bases India has set up with partner countries as well as the trade agreement that India has signed with some of the Countries. 

Counter for China’s Gwadar 

India has very cleverly placed its base in Oman where we have the “Dhakum Port”. The Dhakum Port is where India’s important crude imports flow from the Persian Gulf. This place is strategically located on the South Eastern seaboard of Oman and it overlooks both the Arabian Sea and the Indian Ocean. On top of that it also has straddled the critical sea lanes in the Arabian Sea and the Gulf of Aden and thanks to the Oman – India relation, we have military access to this port which makes it a great defense point. 

The Mozambique Channel 

In 2015 India’s PM Sh. Narendra Modi signed an agreement with the seashells president to develop a place called “The Assumption Island” for military use, but unfortunately, after this deal was done there were a lot of protests, and change in government because of which this agreement is in a shaky position. 

Strait of Malacca and the other two choke points (Sunda Strait and Lombok Strait) 

Here India has the “Changi Navel” Base where in 2018 Modi signed an agreement with the Government of Singapore. This agreement has provided direct access to the Indian Navy itself, so while sailing through the South China Sea the Indian Navy can refuel and rearm its ships.

Sabang Port in Indonesia

In 2018 India got Military access to “Sabaan Port” which is Located right at the Entrance of the Malacca Strait so theoretically we have a firm grip over the Strait of Malacca. According to a report by Warsaw Institute 70% of the Oil supply and 60% of Trade of China is exported through The Strait of Malacca, so choking this point means Choking the Economy of China.

Indo – Vietnam Diamond 

India supplies some of the most important Defense equipment to Vietnam and in 2016 India signed a comprehensive strategic partnership with Vietnam. 

India and Japan’s Relationship 

On September 9th, 2020, India signed the Acquisition and Cross-service agreement with Japan which allows the militaries of both these Countries to exchange supplies and services on a reciprocal basis. 

India – Mongolia Relationship 

India gave One billion Dollar in credit to develop an Air Corridor for Mongolia. 

Chabahar Port in Iran 

Iran is also a part of the Chinese BRI Initiative wherein they have a railway line from China to Iran. In 2015 when Iran was facing crippling economic sanctions and diplomatic isolation, India agreed to develop a Deepwater port on Chabahar Port on the Gulf of Oman, and as a part of this India’s PM Sh. Narendra Modi visited Iran and signed an agreement worth 500 Million dollars to develop this port and related infrastructure. This is very close to the Gwadar Port in Pakistan. 

So, this creates a Necklace around China and these are strategically located points that can be used to counter the Chinese in case of any Military conflict.


Indonesia is the second largest trading partner of India in the ASEAN region. India is the largest buyer of crude Palm Oil, from Indonesia and imports coal, mineral, rubber, pulp, paper, and hydrocarbon reserve. India exports Petroleum products, Maize, Commercial vehicles, Telecommunication equipment, Oil seeds, Animal feed, Cotton, Steel Products, and Plastics to Indonesia. There are 100,000 people of Indian origin living in Indonesia.

Indian Navy has access to the strategic Island of Sabang close to Malacca Strait from where 40% of the Indian Trade passes.

QUAD (Quadrilateral Security Dialogue)

QUAD is a strategic security dialogue between Australia, Japan, and the United States that is maintained by talks between member countries. President Biden hosted Prime Ministers Scott Morrison of Australia, Narendra Modi of India, and Yoshihide Suga of Japan at the White House on September 24th for the Quad’s first-ever in-person Leaders’ Summit. The leaders h proposed ambitious initiatives to strengthen ties and advance practical cooperation on 21st-century challenges, such as ending the COVID-19 pandemic, including increasing production and access to safe and effective vaccines; promoting high-quality infrastructure; combating the climate crisis; collaborating on emerging technologies, space, and cybersecurity; and cultivating next-generation talent in all of our countries.