Why Djibouti?

China formally opened its first overseas military base on August 1, 2017 — the same day that the People’s Liberation Army celebrated its 90th birthday. Beijing says Djibouti is ideally placed for China to resupply peacekeeping and humanitarian missions and combat piracy off the coasts of Yemen and Somalia.

A former French colony, the multi-ethnic Republic of Djibouti is about the size of Wales. It occupies 23,200km sq of mostly volcanic desert, is devoid of natural resources, and has a population below a million. However, the country’s location is of key strategic value. Situated on the northwestern edge of the Indian Ocean, at the southern entrance to the Red Sea, Djibouti controls access to the Suez Canal and the Indian Ocean, home to some of the world's busiest shipping lanes. Djibouti offers China the ability to operate military missions far from home.

Not everyone views China’s base as entirely benevolent. New Delhi has voiced concerns that the naval and logistics facility is part of a broader plan to establish another “string of pearls”, with Bangladesh, Myanmar and Sri Lanka, encircling India. There have also been persistent rumours that China intends to build more bases in countries such as Pakistan. Beijing strenuously denies these claims. US lawmakers warned there would be 'significant' consequences should there be a Chinese takeover of Djibouti's port operations.

Djibouti’s Finance Minister Ilyas Dawaleh has said, “Djibouti’s development needs all its friends and strategic partners. At the same time, no one can dictate to us who we should deal with.”