China has big plans for the development of Blue Economy in the Indian Ocean

China’s global initiatives and ventures span multiple domains and are marked by politico-diplomatic engagements, investments in infrastructure for economic growth of the recipient country, strategic-military engagements for military purposes, technology export for promotion of China’s scientific-industrial prowess, and social engagements through the promotion of Chinese culture. These are represented by the One Belt One Road (OBOR), 21st century Maritime Silk Road (MSR) focused on the maritime-littoral spaces, the Digital Silk Road (DSR) to “foster the internationalization of China’s rapidly growing tech companies”, the Cultural Silk Road led by Confucius Centers, and the Polar Silk Road focused on “Arctic shipping routes connecting three major economic centers – North America, East Asia, and Western Europe – through the Arctic Circle”. Though noteworthy, these initiatives have attracted a mixed bag of successes and failures including geopolitical and geostrategic contestation and competition.

On June 2022 President Xi Jinping unveiled the Global Development Initiative (GDI). Its aim is to deliver on 32 initiatives to include “establishing the Global Development Promotion Center, holding a Forum on Global Action for Shared Development, creating a pool of GDI projects, upgrading the Global Development and South-South Cooperation Fund and increasing input to $4 billion, and providing another 100,000 training opportunities.” The GDI has the support of the United Nations and over 100 countries and international organisations, of which 60 countries have already joined.

Pursuant to the GDI, on 21 November 2022, the China-Indian Ocean Region Forum on Development Cooperation was held in Kunming, Yunan. It was jointly hosted by the China International Development Cooperation Agency (CIDCA) in partnership with the government of Yunnan province. In his remarks at the Forum, Lou Zhaohui, chairman of the CIDCA, highlighted the importance of the Indian Ocean to Asia, Africa and Oceania and that majority of the countries in the region are developing countries and are confronted with multiple development challenges which are similar to those faced by China. He also alluded to the Indian Ocean Rim Association (IORA) where China is an Observer, and stated that his country “will strengthen cooperation with countries in the Indian Ocean region to grow the blue economy, and advance the implementation of the GDI in the region” through sustainable use and development of marine resources which resonates with the United Nations Decade of Ocean Science for Sustainable Development.

Blue economy is high on China’s national development plans and the gross marine product exceeded 9 trillion yuan ($ 1.26 trillion), up 8.3 percent year-on-year. This encourages China to explore cooperation with other regions/countries for joint development of Blue Economy. For instance China and ASEAN have established Maritime Cooperation Fund for the ASEAN and hold seminars and forums to promote maritime cooperation through China-ASEAN Marine Science and Technology Cooperation Center, China-ASEAN Marine Science and Technology Joint R&D Center and China-ASEAN Marine Science and Technology Cooperation Forum .

China has an ambitious agenda for the Indian Ocean and plans to set up a Blue Economy think tank network for the Indian Ocean countries in Yunnan, as also promote innovation and build capacities to harness the ocean economy. Other plans include hosting/holding on a regular basis the China-Indian Ocean Region Development Cooperation Forum focused on “marine economy, science and technology, biology, and tourism”. Furthermore, China has proposed to “establish a jointly-funded China-Indian Ocean Region marine disaster prevention and mitigation cooperation mechanism” and is willing to provide “financial, material and technical support for the mechanism”. Interestingly, “centers for China-Africa cooperation on satellite remote-sensing application” are also on the cards.

However the Chinese proposal is mired in competition with India which announced the Indo Pacific Ocean’s Imitative (IPOI). The IPOI rests on seven pillars: (a) Maritime Security; (b) Maritime Ecology; (c) Maritime Resources; (d) Capacity Building and Resource Sharing; (e) Disaster Risk Reduction and Management; (f) Science, Technology and Academic Cooperation; and (g) Trade, Connectivity and Maritime Transport. Under the IPOI, India hopes to build a sense of community by creating new partnerships with like-minded countries spanning the expanse from the shores of East Africa to the western Pacific Ocean. India is encouraging other countries to join the IPOI and also lead some thematic areas under the Initiative within the framework of ‘security-development-capacity building’ in diverse areas spanning security, safety, resource development, science and technology, resilient infrastructure and marine environment-ecology.  

It is true that Blue Economy is high on the agenda of the Indian Ocean countries and resonates with the IORA which has accorded it a special label of ‘priority areas” including setting up of an IORA Working Group on the Blue Economy (WGBE). However, IORA and its Member States are not inclined to be caught in a conundrum for choosing between China and India.

Dr Vijay Sakhuja is Consultant Kalinga International Foundation, New Delhi.

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