Aksai Chin, South China Sea, & other gestrategic interests for China in the 21st century

China's geostrategic interests and orientations continue to expand, results of which can be seen spilling over in the form of unmitigated violence in the South China Sea, defending its military and trade interests in the Asia Pacific, sometimes by undermining the rights and sovereignties of other countries, over 18 in fact, despite sharing borders with only 14 of them.

China is the world's most populous country with a landmass area that is second only to Russia. With an increasing appetite for regional and global hegemony, resources are a key factor of how a country can become a dominating power in the 21st century. Here are five areas China currently has a key interest in:

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Aksai Chin

Largely a remote and inhospitable region in the northeastern part of Ladakh, the area was ignored until the 1950s when China violated India's borders by building a military road through it to connect Tibet to China's southwest region Xinjiang (another province persecuted by the Chinese PLA under Xi Jinping's rule).

India retaliated to the untoward aggression and this ultimately led to the Sino-India conflict in 1962. After a bitter spell of the fight, India ceded control of 38,000 sqkm of territory in Aksai Chin. Following that, in 1993 and 1996, both countries signed a decree acknowledging the demarcation line and agreed to stay away from the LAC.

Why Aksai Chin is important

China eyes Aksai Chin for its access to Tibet and militarily strategic vantage point. Being situated mostly on high ground, with an average elevation of around 18,000 feet, if China ever went to war with its neighbours, its borders would remain secure and the marching armies will have to cross the mighty Himalayas to gain access to its lands.

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South China Sea

Not only does China claim large sections of the water for itself but it is up in arms with a number of territories over disputed islands in the region. China is notorious for taking control by manning the waters with its Navy and aircraft carriers in Woody and Spratly islands in the South China Sea. 

Currently, seven countries — China, Brunei, Malaysia, Philippines, Singapore, Taiwan and Vietnam hold different territorial claims in the region, sometimes these countries have multilateral disputes among them over its sovereignty. China inadvertently bullies its much smaller and weaker neighbours by staking historical precedence and geographical ownership claims over the territory. 
Significance of the South China Sea

Adding to the tension, the US Navy frequently patrols the sea with its war machinery owing to its alliance with several of these countries, except for Vietnam and this in return aggravates China as it considers it an unwanted provocation.

The South China Sea is a big piece of the puzzle for Beijing's ambition as it provides crucial access to important trade locations — connecting Asia with Europe and Africa. According to WEF (World Economic Forum), one-third of global shipping USD 3.7 trillion worth of international trade passes through these waters.

In addition to this, the sea bed is also touted to be rich in oil and gas reserves. The US Energy information administration estimates that the region likely holds at least 11 billion barrels of crude oil and 190 trillion cubic feet of natural gas trapped in the sea bed. Alternatively, it is also a major food source. Over 10% of the world's seafood is reported to come from there.

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CPEC and its significance to China's strategic interests

China-Pakistan Economic Corridor (CPEC): Pakistan's warm water and deep seaport Gwadar is situated right at the mouth of the Persian Gulf and Strait of Hormuz, which holds two-thirds of the world's oil reserves. After its initial construction phase between 2007-2012, the Port Singapore Authority (PSA) built a small port in the area, however, due to underperformance, it was handed over to China Overseas Port Holding Company (COPHC), which revamped the port at a rapid pace. 

Along with the building of the port, China also heavily invested in power generation plants and an international airport in the city. There are several other projects planned all with the intention of commencing commercial trade and shipment in the region.

Considering the China-Pakistan Economic Corridor (CPEC) in place, the port is one of the three major deep seaports in Pakistan that could connect East Asia with central and west Asia and Africa. 

Chinese investments - Iran, SL port

According to several leading news reports, it is believed that China and Iran have signed a comprehensive trade and security agreement worth USD 400 billion. The trade is likely to mark a significant geopolitical shift in the region and gives China access to the inner roads in West Asia. Although full details of the deal have not appeared in public domain, this is a sign of what is to come and regional powers including India and Japan as well as global powers such as Russia and the US should be concerned of the leeway China has made.

China's Belt and Road Initiative (BRI) is the cornerstone of its aim to dominate global supply as well as find new markets for its products. China's exploitation coupled with the region's instability will not only disrupt regular business in the region but also empower China to take more extreme measures to thwart democratic values at home.

Iran's isolation by the US meant that China had a freehand to propose large-scale agreements and they did just that. China and Iran have reportedly agreed to expand the former's presence in Iran in the form of banking, telecommunications, ports, railways, and countless other fields.

Sri Lanka's Hambantota Port is another prime example of negative Chinese influence in an economy. Despite the country's ballooning debt under president Mahinda Rajapakse, China continued to loan billions to Sri Lanka. After years of construction and renegotiation, CHEC (China Harbour Engineering Company) it's largest state-owned enterprise decided to take over the rights and access to the port in 2015 for failure of non-payment. 

China now owns the lease for Hambantota for 99 years and an additional 15,000 acres of land surrounding it. The transfer, according to New York Times, gave China control of territory just a few hundred kms off the shores of India — a strategically sound foothold to possess in the form of commercial and military waterways. But Sri Lanka will never reap its benefits.

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Myanmar oil gas reserves

Not only does Myanmar have the largest natural gas reserve in Asia but it also has tremendous opportunities for commercial activities waiting for approval. Noting that FDI is constantly increasing in the region, U Thaung Tun, chair of Myanmar Investment Commission (MIC) explained that large corporations such as ENI, PTTEP, Daewoo and Woodside are all commencing their exploratory drilling in more than 20 onshore and offshore blocks. Among these exploration project now in progress, the Ministry of Electricity and Energy’s Oil and Gas Planning Department said that is all set to invite international tenders of up to 31 oil and gas exploration fields in 2019. India had once lost the opportunity to gain an advantageous position with oil drilling projects to China in 2007 and has since been snubbed repeatedly due to Chinese influence.

Recently, one of China's closest ally in Southeast Asia blamed China for funding and arming rebels and insurgent groups in its country to destabilise the region. It accused Beijing of supplying its terrorist factions with "sophisticated weapons". Myanmar's Senior General Min Aung Hlaing explained that terrorist outfits active in the country, especially in oil-rich regions are backed by "strong international forces" referring to China.

Several other military leaders have stated the same implying Chinese forces were funding the Arakan Army, the Rohingya Salvation Army in order to gain more influence and supremacy over Myanmar's oil and gas reserves. This isn't the first time Myanmar's leaderships has alluded to the Chinese connection. Frequently, Myanmar's army raids and stumbles upon arms cache sometimes worth well beyond USD 100,000 and all the weapons seized the Generals acknowledge seemed to come from China.

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