The new sea-road-rail link, a trade corridor pathway connecting Chengdu in China to the Indian Ocean via Yangon in Myanmar, enables western China to access the Indian Ocean for the first time. This development has critical implications for international trade and geopolitics.
The New Trade Corridor: Connecting Nations and Economies
Creating a direct route from southwest China to Singapore via Myanmar, this recently inaugurated trade passage signifies a major shift in international commerce dynamics. By spurring economic cooperation at the border under the Belt and Road Initiative, China intends to transform the region into a prime hub for international trade.
An additional port is proposed in Kyaukphyu, Rakhine state, Myanmar, which would include a direct railway line from Yunnan, China. However, ongoing unrest in Myanmar has temporarily paused these plans. Despite the challenges, this trade corridor stands as an alternative route for China and a means of overcoming the “Malacca Dilemma,” a term coined by former Chinese President, Hu Jintao, to express fears over potential maritime blockades in the Straits of Malacca that could upend China’s economy, as most of its oil imports pass through these straits.
Gwadar Port: The Link Between Oceans and Lands
Currently under development as part of the CPEC (China–Pakistan Economic Corridor), Gwadar port is critical for China’s strategic oceanic operations. As well as offering direct transport links to the Indian Ocean, Gwadar supports stability in western China, a region vulnerable to Islamic agitation. Its proximity to the Hormuz Strait also facilitates access to key oil import routes.
Gwadar is part of China’s wider strategy, using foreign ports operated by Chinese firms to establish a network of supply, logistics, and intelligence hubs along the Indian Ocean perimeter – known as the ‘String of Pearls’ strategy.
India & the Changing Geopolitical Dynamics
The new trade corridor, along with the proposed China–Nepal Economic Corridor (CNEC), marks a significant shift in China’s economic and strategic influence in the Indian subcontinent. This raises concerns over a potentially enhanced Chinese maritime presence and naval engagement within the Bay of Bengal and broader region, reinforcing China’s ‘String of Pearls’ policy.
To mitigate these developments, India has initiated several countermeasures. The Supply Chain Resilience Initiative, development of the Chabahar Port in East Iran, the ‘Act East’ policy, and the Quad Initiative are all parts of India’s strategic response. Efforts to develop North-Eastern India and the launch of the Indo-Pacific Oceans Initiative further demonstrate India’s commitment to maintaining balance within the region’s changing geopolitical landscape.
