Fortnightly Report & Analysis: ASEAN, Indo-Pacific, East Asia, Japan & China (Vol 1 Issue XII)

(December 1-15, 2016)

ASEAN

Indonesia

Indonesian President Joko Widodo Visit to India

President of Indonesia Joko Widodo made his first State visit to India from December 12-13 at the invitation of Prime Minister Modi. President Widodo was accompanied by several cabinet Ministers, senior officials and a 22-member high level business delegation from Indonesia. ‘Vision Document 2025’ prepared by the India-Indonesia Eminent Persons Group covering five areas of Strategic Engagement, Defense and Security Cooperation, Comprehensive Economic Partnership, Cultural and People to People Links and Cooperation in Responding to Common Challenges was released to serve as blueprint for bilateral cooperation. Both countries signed three agreements: MoU on Youth Affairs and Sports, MoU on Trade Standards and Joint Communiqué on Illegal and Unauthorized Fishing.

The leaders of both countries welcomed the progress made under sectoral Joint Working Groups on Coal, Agriculture, Counter-Terrorism, Health, and Combating Illicit Trafficking in Narcotics, Drugs, Psychotropic Substances and its Precursors since last meeting between the two leaders in November 2014 in Nay Pyi Taw. PM Modi and President Widodo condemned terrorism in strong terms, emphasizing "zero tolerance” for acts of terror. They called upon all countries to implement the UNSC Resolution 1267 and other relevant resolutions designating terrorist entities. They also called upon all countries to work towards eliminating terrorist safe havens and infrastructure, in disrupting terrorist networks and financing channels, and stopping cross-border terrorism. In that regard, both countries called for enhanced cooperation including through greater exchange of information and intelligence between the two sides.

The leaders also agreed to increase the frequency of defense exchanges, training and joint exercises including exploring collaboration between defense industries for joint production of equipment with technology transfer, technical assistance, and capacity building cooperation. Special mention was also made of the successful launch of the satellites LAPAN A2 in September 2015 and LAPAN A3 in June 2016 by ISRO with LAPAN and ISRO directed to expedite the conclusion of the Inter-Governmental Framework Agreement on Cooperation in the Exploration and Uses of Outer Space for Peaceful Purposes, and other related agreements having applications in hydrography, weather forecasting, disaster management, crop forecasting and resource mapping.

By issuing a separate statement on maritime cooperation, PM Modi and President Widodo highlighted the growing importance of the maritime domain to both countries and in regional affairs. Both sides pledged to deepen maritime cooperation around a broad range of fields including maritime security, maritime industry, maritime safety and navigation. Without an explicit reference to South China Sea, they reiterated resolving maritime disputes by peaceful means and maintaining maritime legal order based on the principles of international law such as UNCLOS with importance of freedom of navigation and overflight on the high seas to ensure unimpeded commerce.

Indonesia has sought to accelerate its economic development in view of recent decline in GDP by seeking investments from abroad. While China is the number three investor in Indonesia, having invested $600 million in 2015, India lags behind with $57.2 million investments for same year. Bilateral trade between Indonesia and India in 2015 was $14.4 billion with Indonesia enjoying a trade surplus of nearly $9 billion. As PM Modi reaffirmed, Indonesia is one of most valued partners in India’s Act East Policy. There exists significant potential for economic cooperation between the largest economy in Southeast Asia (Indonesia) and the fastest growing economy in the world (India).

Indonesia Worried About Islamic State Setting Base in Philippines

In a seminar on terrorism in Central Jakarta on December 6, Indonesian Military (TNI) Commander General Gatot Nurmantyo said that the Islamic State had been building its Southeast Asian base in the southern part of the Philippines, which immediately borders Indonesia’s Kalimantan and Sulawesi. Gatot stated that the increasing number of abductions carried out by terrorist groups on seamen passing the water in the area indicate that extremists have been collecting money to build a new center of operations. The Abu Sayyaf militant group has repeatedly kidnapped sailors including those from Indonesia, in exchange for ransom in the Sulu Sea located in the southwestern area of the Philippines. Abu Sayyaf has allegedly stated allegiance to the IS. Gatot argued that the IS decision to move to Southeast Asia was however purely economic rather than ideologically driven as their lucrative financial sources from Middle East have been severely reduced.

In the same seminar, terrorism analyst Al Chaidar from University of Malikussaleh Aceh mentioned that it was Al-Baghdadi himself who chose the southern Philippines as the IS base in Southeast Asia and plans to appoint Indonesian firebrand cleric and Jamaah Ansharut Daulah (JAD) leader Aman Abdurrahman (who is currently in jail) as IS leader in the region. A number of terrorist attacks in Indonesia are believed to be linked to JAD, including the attacks at Jalan Thamrin in Central Jakarta in January and an attack at Oikumene Church in Samarinda, East Kalimantan in November. The analyst said the persecution of Rohingya Muslims in Myanmar could escalate the security threat in the region as IS could use it as a pretext to call on its foreign fighters to flock to Southeast Asia.

Vietnam

India, Vietnam Bolster Bilateral Cooperation

On December 6, Indian Defense Minister Manohar Parrikar and his Vietnamese counterpart General Ngo Xuan Lich during their talks in New Delhi underscored the implementation of the Joint Vision Statement on India-Vietnam Defense Cooperation for the period 2015-2020. They emphasized on increasing bilateral exchanges, especially among young military officials, and promoting deputy ministerial-level defense policy dialogue. They also signed an agreement where India would train the Vietnamese Air Force Su-30-MK2 fighter aircraft pilots. This would be the second major training program after Vietnamese Navy was trained by Indian Navy in operating Russian-origin kilo-class submarines. India in the past has trained Malaysian Air Force pilots on the Russian Su-30 fighter aircraft. Vietnam agreed to receive Indian students to study Vietnamese and open training courses for senior officials at the Vietnam National Defense Academy. The two sides also highlighted the importance of naval co-operation to carry out search-and-rescue operations at sea and implement the Code for Unplanned Encounters at Sea.

On December 9, four more agreements were signed in New Delhi between India and a Vietnamese delegation headed by President of Vietnam’s National Assembly, Nguyen Thi Kim Ngan to boost the relations. The most prominent agreement was on civil nuclear cooperation signed by Secretary of Department of Atomic Energy and Deputy Minister of Science and Technology to encompass broad research on nuclear reactors. The earlier agreement in civil nuclear field in 1986 was limited to training. The two countries also signed three other agreements—to enhance aviation links, to jointly work in the area of energy efficiency and promotion of parliamentary cooperation, when the Lok Sabha Speaker, Sumitra Mahajan recalled India’s statement following the award of Arbitral Tribunal on South China Sea issue and reemphasized resolving disputes through peaceful means without threat or use of force and showing utmost respect for the UNCLOS.

Tensions have stirred up between Vietnam and China once after China issued a set of postage stamps featuring five lighthouses they have built in South China Sea. In a statement on December 13, Vietnam stated that the postage stamps are a serious violation of Vietnam’s sovereignty over the Truong Sa (Spratly) Islands, and goes against the Universal Postal Union Treaty. This closely follows dispute on Chinese Navy holding ceremonies to commemorate the “70th anniversary of the recovery” of the Hoang Sa (Paracel) and Truong Sa (Spratly) archipelagos in South China Sea on December 8.

Myanmar

India’s Multi-modal Kaladan Project Makes Progress

According to media reports, Amb. Vikram Misri has indicated that the port being built by India in Myanmar’s Sittwe on the Bay of Bengal is ready to be commissioned. Inauguration ceremony of the port is slated to take place next month. Sittwe, capital of Rakhine State is located at the mouth of Kaladan River which would be used for transportation and thereafter there would be road linkages to Mizoram. Construction of the sea port is the first phase of an integrated $500-million project being funded by a long-term interest-free loan provided by India. Dredging of the river and inland water terminals are included in the project plans and outlay. This connectivity would enable lower costs of transportation as well as much less time taken for the goods to travel from Kolkata to Mizoram via circuitous land route through Indian territory.

Further, the two countries have exchanged drafts of proposed pacts to open several passport and customs control points on the India-Myanmar border to encourage vehicular traffic, with an aim of flagging them off within six months. To facilitate economic activity about 10 border ‘haat’ points between Mizoram, Manipur, Nagaland and Myanmar are being opened. Meanwhile, Myanmar Airways International has just supplemented Air India’s twice weekly service between Yangon and Kolkata to double the direct flights between the two cities.

Singapore, Malaysia

Singapore, Malaysia signed High-speed Rail Agreement

Malaysia has signed a final accord with Singapore to build a high-speed railway line. The proposed project is set to link Malaysia’s biggest city Kuala Lumpur with the city state of Singapore by 2026. The agreement was witnessed by Malaysian Prime Minister Najib Razak and his Singaporean counterpart Lee Hsieng Loong on December 12, 2016 in Putrajaya, Malaysia. The massive infrastructure project is South-east Asia’s first high-speed railway project. The proposed distance of the railway line is 350 KM with spread along west coast of Malay Peninsula with six proposed transit stations. For the development of project both the countries are expected to jointly appoint a joint development partner by next year, which will provide advice on operational, technical and procedural matters.

In this project Japanese and Chinese companies have shown keen interest; however, Japan is competing with China for the contract, with China seen as the front runner after a slew of successful infrastructure bids in Malaysia, including the East Coast Rail Link, a 620 km line costing RM55 billion, which it won last October. Japan’s own high-speed rail, the Shinkansen, has had no fatal collision or derailment in its 51-year history and has been accepted by India, Thailand and Taiwan. When it comes to the transparency in terms of information disclosure to the public and law makers, the Malaysian government is not very particular about it, which gives China a prime position to win this bid. That is highly likely especially given that China Engineering bought a strategic stake in Bandar Malaysia which is an urban development project in the capital of Malaysia and is also a main station in Malaysia for high-speed rail project. If the Singaporean government pushes for safety measures and standards then the Japanese companies are likely to get a serious consideration for this project.

In Similar manner, Thailand has shown its interest in developing a high-speed rail link between Bangkok and Kuala Lumpur. This kind of spill over effect in the South-east Asian region will fall in line with Chinese development of ‘One Belt, One Road’ investments. Thus, this project is going to herald the era of high-speed rail in the South-east Asian region.

Thailand

The First Draft of Organic Act on Elections is Published by Constitution Drafting Committee

The Constitution Drafting Committee have published the first draft of the ‘Organic Act of Elections’ on 07 December 2016. The newly drafted bill on political parties may see numbers of political parties slashed to 10 from the present 72 parties as stated by the election commission on December 08, 2016. The basis for this decision is the financial record of these political parties. Along with financial parameters the draft also tightens the norms about the membership and the overall presence of the political parties. The organic act also institutes four roles for political parties which are: ‘encouraging people to engage in democratic values and freedom of expression,’ ‘encouraging people to participate in politics and the checks and balances process,’ ‘providing a proper development plan for the country’ and ‘creating unity and reconciliation and encourage non-violent conflict resolution methods’. Representatives from up to 40 political parties, excluding the Pheu Thai Party, are expected to take part in forum on the controversial organic bill on political parties scheduled on December 14, 2016. Despite Pheu Thai’s boycott, the Constitution Drafting Committee seems optimistic and expects 80 per cent parties to participate in the debate on the new law. The forum is being organised to gauge the views of politicians and the public a week after the CDC unveiled the draft, which is among the four organic laws necessary for an election.

South Korea

South Korean President Park Geun-hye Impeached

The South Korean Assembly voted to impeach President Park Geun-hye on December 09, 2016. The impeachment was followed up by uproar over influence peddling accusations. The impeachment of President Park also signifies the downfall of South Korea’s most powerful political dynasty. The vote count of 234 was more than the two-thirds of the total required for the impeachment in the 300 member National Assembly. The vote count also indicates that many members of Ms. Park’s own party have joined the opposition and independent members of the assembly in voting to impeach her. With the impeachment of President Park the Prime Minister of South Korea whose position in the politics of South Korea is largely ceremonial will be acting president. The downfall of President Park began after the prosecutor’s accusations that she shared confidential documents with a long-time friend Choi Soon Sil, who helped her to extract money from the South Korea’s largest conglomerates including Samsung and Hyundai. The South Korean Constitutional court will have six months to decide about the impeachment of Ms. Park. If six of the members from nine members agree on the impeachment then Ms. Park will be permanently removed from office and a snap election will follow within two months. The Public protests likely to continue on the streets of South Korea to develop a pressure on Constitution Court to approve the motion of impeachment and remove President Park permanently. However, President Park have informed her cabinet immediately after the impeachment that she is not ready to resign and will fight against the impeachment in the Court with full preparation. The political uncertainty emerged in S Korea with the impeachment of President Perk coupled with external instability evolving due to more inward looking US and China risks etc. Thus, the uncertainty evolved in political and investment related issues is likely to harm the South Korean Economy which is mainly an export oriented one.

Indo – Pacific

Rumblings in the South China Sea

Vietnam has begun dredging work on a disputed reef in the South China Sea, as satellite imagery shows, in a move to bolster its claims in the strategic water way. Activity visible on Ladd Reef in the Spratly Islands could anger Beijing, which claims sovereignty over the Spratlys. Ladd Reef, on the southwestern fringe of the Spratlys, is completely submerged at high tide but has a lighthouse and an outpost housing a small contingent of Vietnamese soldiers. The reef is also claimed by Taiwan. In an image taken on November 30, several vessels can be seen in a newly dug channel between the lagoon and open sea. In another development, the Chinese Foreign Ministry spokesperson, Geng Shuang, said that deployment of necessary defensive facilities on some islands in the South China Sea is legitimate and normal. He was making these remarks in response to a question regarding a US think tank report saying China appeared to have installed weapons on seven islands in the South China Sea.

The South China Sea has been a hotbed of conflicting territorial claims with the Permanent Court of Arbitration (PCA) award of July 2016 clearly pushing China on to the back foot in the legitimacy of its claimed ‘nine-dash line’. China has since been trying to build bridges in this fractured zone with the various claimants, especially the Philippines and Vietnam. It appears to be making some headway with the new Filipino administration under President Rodrigo Duterte but Vietnam appears to be treading cautiously in its dealings with China. Vietnam has been consistently beefing up its military capacity while not directly antagonizing China. The current dredging seems to be aimed at shoring up its defences on these islands in conjunction with its growing military strength. While these defences by themselves may not be able to contend with any future Chinese aggression, they may serve to warn the Vietnamese about Chinese intentions.

The Chinese, meanwhile, continue to increase their military capabilities on the islands under their occupation which will provide the Chinese military with not only an increased surveillance capability but also likely interdiction capabilities with the possible operation of fighter aircraft from the airstrips constructed on three of these so-called islands. The Chinese have also not ruled out the possibility of declaration of an ADIZ in this area. Consequently, tensions in the South China Sea are unlikely to decrease anytime in the near future despite China’s apparently conciliatory moves following the PCA award. Much more needs to be done by the claimant countries and other stake holders like the USA to build up mutual trust before determining a path for finding the solution to this intractable conflict.

Japan

Japan to Upgrade Missile Defense System and Military Communications

As the government begins work on fiscal 2017 budget, the Abe administration is reportedly planning a third supplementary budget for fiscal 2016 of ¥1 trillion ($9 billion) to upgrade its missile defense system in response to North Korean ballistic missile launches and tighten security for 2020 Tokyo Olympics. In September 2016, North Korea simultaneously fired three Rodong intermediate-range ballistic missiles with a range of 1,300 kilometers into roughly the same area within Japan’s exclusive economic zone (EEZ), demonstrating its technical improvement in the accuracy of such missiles. For Japan, the reinforcement of its missile defense system has now become a pressing issue. As per Japanese media reports, this third supplementary budget would exclude economic stimulus measures. After compilation of the budget by Finance Minister Taro Aso, the government will likely approve the supplementary budget at a Cabinet meeting in mid-December and submit it to an ordinary Diet session to be convened next year.

Japan’s Self-Defense Forces have a two-tier anti-missile system. Any missiles that make it through the mid-course defenses of Aegis-equipped destroyers and their S-M3 missiles are met in terminal phase with the ground-based Patriot Advanced Capability-3 (PAC-3) interceptors. The government plans to allocate about ¥188 billion ($1.6 billion) to upgrade and double PAC-3 missiles range that is currently about 15 to 20 kilometers. The government will also earmark about ¥7 billion ($6 million) to add the missile defense function to the Maritime Self-Defense Force’s Aegis-equipped vessels. Japan is also considering buying the US Terminal High-Altitude Area Defense (THAAD) advanced anti-missile system and plans to allocate around ¥200 billion ($2 billion) for it in the third supplementary budget. The seventh and eighth Aegis ships from Lockheed Martin will also join Japan's fleet. Aegis provides four of Japan's Kongo-class destroyers and two Atago-class destroyers with advanced sea, air and undersea threat detection capabilities.

The Japanese Ministry of Defense (MoD) also plans to launch Kirameki-2 satellite, first of the three dedicated military satellites to replace civil analogues currently in use for communication between Japanese military units into orbit on January 24, 2017. The new satellites dedicated to military communication will provide a direct high speed connection between the ground, naval and air forces of Japan. The Kirameki-2 or DSN-2 satellite is an X-band communications satellite built and operated by DSN Corporation for the Japanese MoD, which has a 15-year lifetime. It will operate over the Indian Ocean, and is set to be used by the Japanese contingent within the UN peacekeepers in South Sudan and in the area of operations against Somalian sea pirates. Kyodo News Agency also reported that the Kirameki-1 satellite, damaged in 2016 during transport to the launch site, would also be renovated and launched in March 2018.

Abe’s Pearl Harbor Trip And Snap Lower House Elections

The current term of the Lower House in Japan does not expire until December 2018. However, talks of early Lower House elections have been doing the rounds since September this year when the Liberal Democratic Party (LDP) announced that it will hold its annual party convention in March 2017, instead of January 2017. Many interpreted the delay as strategic and indicative of Abe’s desire to dissolve the Diet's lower house and hold a snap election in January 2017. Prominent political figures from Komeito to Democratic Party of Japan (DPJ) have since then referenced in the media about the possibility and their preparation for the snap elections. As per media reports, the Abe-Putin summit on December 15-16 was to provide the boost necessary to call an election. However, with negotiations becoming harder on Northern Territories, the Abe administration is uncertain about the outcome. Abe’s decision to be the first Japanese Prime Minister to visit Pearl Harbor during the Abe-Obama summit in Hawaii while bringing closure to lingering Japan-US World War II legacies, will also bolster the public support necessary for elections. According to a survey by the Nikkei, US President Barack Obama's historic visit to the city of Hiroshima in May enjoyed large public support and tremendously boosted Abe’s approval ratings.

With the prime opposition party, Democratic Party of Japan (DPJ), presently embattling many controversies -- such as dual nationality (Taiwan) of its leader Renho, public infighting in the party and their probable alliance with Japanese Communist Party --early elections may be politically pragmatic for Abe. Further, many unpopular legislations await Abe in 2017 such as revision of electoral districts, consumption tax hike, and reforms to Japan's pension system. Elections in January 2017 would not only help mitigate the anti-incumbency wave that arises with these legislations, but also ensure that Abe remains in office when Tokyo hosts the Olympics in 2020 and reform constitution. However, the question of large public funds being allocated to another elections right after the Upper House election in July 2016 that cost Japanese taxpayers approximately ¥55.5 billion remains a big issue.

Second G7 High-Level Meeting on Maritime Security under Japan Chair

On December 8, Japan held the Second G7 High-Level Meeting on Maritime Security in Tokyo as a follow-up to the G7 Foreign Ministers’ Meeting in Hiroshima. On Japan’s stance on maritime security, Mr. Kentaro Sonoura, State Minister for Foreign Affairs reiterated the three principles advocated by Japan (and affirmed in the G7 Ise-Shima Leaders’ Declaration) on the rule of law at sea: (i) states shall make and clarify their claims based on international law; (ii) states shall not use force or coercion in trying to drive their claims and; (iii) states shall seek to settle disputes by peaceful means. While not openly referring to China, Sonoura indicated increasing frictions and tensions in maritime domain in the Asia-Pacific and emphasized parties to refrain from unilateral actions and seek peaceful resolution based on international law. He further touched upon Japan’s anti-piracy measures and initiatives to increase Maritime Domain Awareness (MDA), challenges over the Arctic Ocean and Abe’s “Free and Open Indo-Pacific Strategy.”Japan has recently been seeking to expand its security role under the banner of “Proactive Contribution to Peace”.

Under the National Security Legislation enacted in September last year (that came into force in March 2016), Japan has sought to legalize its right to collective self-defense on situations that could threaten Japan's peace and security even when Japan is not under direct military attack. The ‘Vientiane Vision’ unveiled last month has led to Japan extending expansive support for ASEAN's capacity building efforts to promote maritime and airspace security.

China & Taiwan

Questioning of the ‘One China’ Principle by Donald Trump

President-elect Donald Trump questioned Washington’s continuance of its ‘one China’ principle even while Beijing does not make concessions on trade and other issues. Inherent in his questioning was the possibility of an entirely new US approach to China being undertaken by the Trump administration.

Trump first spoke on the phone with Taiwan President Tsai Ing-wen. He then tweeted the same “The President of Taiwan called today to wish me congratulations on winning the Presidency. Thank you!” And added another tweet later “Interesting how the US sells Taiwan billions of dollars of military equipment but I should not accept a congratulatory call!” Post this, The White House clarified its position by stating that there was "no change" to the United States' longstanding ‘one China’ policy. "We remain firmly committed to our 'one China' policy," said Ned Price, a national security spokesman for President Barack Obama, "Our fundamental interest is in peaceful and stable cross-Strait relations."

In reply to the Trump-Tsai telephone conversation, the Global Times said “Since China and the US established diplomatic ties in 1979, no US president or president-elect has made calls to any Taiwan leader.” Thereafter, Trump in a subsequent interview to Fox News said “I don’t know why we have to be bound by a one-China policy unless we make a deal with China having to do with other things, including trade”.

China's response was measured but clear: co-operation with the US "would be out of the question" if Trump did not adhere to the 'one China' policy. Chinese Foreign Ministry spokesman Geng Shuang said, "I want to stress that the Taiwan question has a bearing on China's sovereignty and territorial integrity. Adhering to the 'one China' principle is the political bedrock for the development US-China relations. If it is comprised or disrupted, the sound and steady growth of the bilateral relationship, as well as bilateral cooperation in major fields would be out of question."

Chinese media reports conveyed the same theme when the Xinhua said “Let's try to make this issue crystal clear for the coming new administration of the United States: any deviation from the one-China policy will be a "deal-breaker. And just to make things even more clear, let's reiterate the policy. There is only one China and Taiwan is an inalienable part of China's territory, and the government of the People's Republic of China is the sole legitimate government that represents China.”

It is still not clear whether the “Trump-Tsai telephone call” and “Trump’s Fox News Interview” signal an attempted shift by the Trump administration in the US’s longstanding China policy or are attempts at using Taiwan as a bargaining chip in negotiations with China.

China-Mongolia Impasse

Tibetan spiritual leader, the Dalai Lama undertook a four-day visit to Mongolia in November 2016. A traditionally Buddhist nation that has historical ties to Tibet, Mongolia has hosted the current Dalai several times in the past too.

Beijing objects to visits by the Dalai Lama as they consider him to be a separatist leader and object to nations giving him a platform to speak. In response to the visit, Chinese foreign ministry spokesman Geng Shuang said that Mongolia should "adopt effective measures to eliminate the negative effects of the Dalai Lama's visit, in order to prevent the disruption of the healthy development of China-Mongolia relations."

Post this visit, there have been unconfirmed reports of China-Mongolia relations being strained on account of China postponing bilateral meetings with Mongolia indefinitely, closing a key border crossing and imposing new tariffs on commodity shipments between China and Mongolia.

Answering questions on this subject, the Indian MEA spokesperson said: “We are ready to work with Mongolian people in this time of their difficulty. During the visit of the PM to Mongolia in May 2015, he had conveyed to the Mongolian leadership that India will extend support in diverse fields. We had announced a credit line of US$ 1 billion. We are closely working with the Mongolian government to implement the credit line in a manner that is deemed beneficial to the friendly people of Mongolia by its leadership“.

China to Acquire 80% Stake in Port of Hambantota

A Chinese state-owned company and the Sri Lanka government have signed an agreement in principle by which the Chinese company would acquire 80% stake in the deep-water port of Hambantota in Sri Lanka. As per a Wall Street Journal report, under the deal, China Merchants Port Holdings Co would pay about $1.1 billion for its share of the port and adjoining land in Hambantota district.

Sri Lanka’s development minister, Malik Samarawickrama, dismissed strategic concerns, saying “there is no issue.” He said the deal was a commercial one that “would take a huge burden off the government.” Beijing on its part is taking pains to project this acquisition as having no other connotations besides that of boosting trade and fostering economic development in line with President Xi’s pet ‘One Belt One Road’ project.

Chinese control on Hambantota can now be presumed to have been further strengthened on account of the signing of the said agreement. Further, the Chinese already have operational control over the South Terminal of the Colombo Port. Chinese control over these ports could be seen as a furtherance of its Maritime Silk Route Strategy which has geostrategic overtones.