The top US general for Africa told lawmakers the American military could face “significant” consequences should China take a key port in Djibouti…. In Febuary 2018, Djibouti ended its contract with Dubai’s DP World, one of the world’s biggest port operators, to run the Doraleh Container Terminal, citing failure to resolve a dispute that began in 2012. DP World called the move an illegal seizure of the terminal and said it had begun new arbitration proceedings before the London Court of International Arbitration.
During a congressional hearing on March 7, 2018, dominated by concerns about China’s role in Africa, lawmakers said they had seen reports that Djibouti seized control of the port to give it to China as a gift. China has already built a military base in Djibouti, just miles from a critical US military base.
Djibouti is strategically located at the southern entrance to the Red Sea on the route to the Suez Canal. Marine General Thomas Waldhauser, the top US military commander overseeing troops in Africa, said if China placed restrictions on the port’s use, it could affect resupplying the US base in Djibouti and the ability of Navy ships to refuel there. Djibouti hosts a vital US military base home to about 4,000 personnel,[Camp Lemonnier] including special operations forces, and is a launchpad for operations in Yemen and Somalia.
China has sought to be visible in Africa, including through high-profile investment in public infrastructure projects, as it deepens trade ties. Waldhauser said the United States would be unable to match the scale of Chinese investment throughout Africa, noting Beijing’s construction of shopping malls, government buildings and even soccer stadiums. “We’ll never outspend the Chinese in Africa,” Waldhauser said, noting some Chinese investments in Djibouti.
In 2018, the US military put countering China, along with Russia, at the centre of a new national defence strategy. The Pentagon said China was a part of “revisionist powers” that “seek to create a world consistent with authoritarian models.”
Excerpts from Significant consequences if China takes port in Djibouti, Reuters, Mar. 7, 2018