China has recently intensified efforts to deepen security ties with countries in the Indian Ocean region. It has signed a new security agreement with the Maldives, and it dispatched a military delegation to visit three other countries in the region earlier this month.

On March 4th, the Maldives’ Defense Ministry announced the signing of a military assistance agreement with China to “nurture stronger bilateral ties.” Details were not provided. China’s Defense Ministry also sent a delegation on a 10-day visit to the Maldives, Sri Lanka and Nepal. They met with Maldivian President Mohamed Muizzu and Maldives defense officials to “discuss regional security issues of common concern,” develop bilateral military relations, and promote defense cooperation.

Concurrently, India began withdrawing around 80 security personnel from the Maldives at Muizzu’s request. The Indian personnel had been deployed to operate helicopters and aircraft for surveillance or rescue operations.

Chinese research vessel activity near the Maldives has increased recently. A Chinese research vessel visited the Maldives last month, raising Indian security concerns that Beijing could use gathered data to deploy naval ships to the region.

Analysts suggest that the Indian Ocean region is becoming another arena for geopolitical rivalry over the next decade, with the potential for low-level conflicts between major powers like India and China. According to David Brewster of the Australian National University, China’s recent developments in the area are part of long-term efforts to boost the country’s regional security presence. Brewster said “China has been doing this for about 15 years, seizing opportunities to increase its Indian Ocean presence.”

India has been taking steps to bolster its own presence in the region and partner with like-minded democracies. Indian policymakers may worry about China’s increasing security footprint in the Indian Ocean.

Source: Voice of America, March 19, 2024
https://www.voachinese.com/a/china-presence-in-indian-ocean-20240319/7534315.html

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported on data released by South Korea’s Ministry of Finance showing that South Korea’s 2023 new direct investment in China dropped by 78.1 percent year-over-year, falling to US$1.87 billion. This is the largest decline in South Korean direct investment in more than 30 years, and it is the first time since 1992 that China has failed to rank among South Korea’s top five destinations for investment. The manufacturing sector  led the decline in investment.

The declining numbers reflect China’s changing role in South Korea’s economy as Washington seeks to reduce Beijing’s influence on global supply chains. The United States is about to replace China as South Korea’s largest export destination, importing products ranging from semiconductors to automobiles. South Korean companies have extensive exposure to key sectors in the U.S. and have been seeking to increase investment there to take advantage of the United States’ market scale and  government subsidies.

According to statistics from the Korea International Trade Association, China’s imports from South Korea last year were US$162.5 billion, a sharp drop of 18.8 percent from the previous year. This led to a US$18 billion trade deficit between South Korea and China, the first trade deficit seen during the 31 years since the establishment of diplomatic relations between China and South Korea.

Source: Lianhe Zaobao, March 15, 2024
https://www.zaobao.com.sg/realtime/world/story20240315-3160390

At the Chinese Foreign Ministry’s press conference on March 25, a reporter asked: “According to reports, Paraguayan President Peña said on March 23 in a social media post that the 66 years of diplomatic relations between Paraguay and Taiwan have been ‘deep’ and ‘friendly.’ And this has not hindered Paraguay’s trade with China, as the country is still exporting soybeans to China. What is China’s comment on this?”

Foreign Ministry spokesman Lin Jian stated that there is only one China in the world, Taiwan is an inalienable part of China’s territory, and the government of the People’s Republic of China is the sole legitimate government representing all of China. “China is the world’s top soybean importer. According to official Chinese statistics, China has imported zero soybeans from Paraguay in recent years. If the Paraguayan government truly wants to work for the development of the country and the wellbeing of its people, it should see the big picture and choose to stand on the right side of history, instead of putting its mind on ‘playing smart’ and ‘exploiting loopholes.'”

Source: Xinhua, March 25, 2024
http://www.news.cn/world/20240325/8d6027121dd741cf92f016423ca23259/c.html