In view of the enormous stakes that both countries have in the Indian Ocean Region, it is natural for China and India to safeguard their interests in the area. This has manifested itself in the growth and modernisation of their respective navies. The expansion and deployment of their navies has led to the perception of the Indian Ocean as a region contested by the two states.

In the twenty-first century, economic interests are dominant factors that dictate a state’s relationships. China and India actually have numerous points of convergence in the maritime and economic spheres, and a harmonious relationship between them could be a win-win situation for both countries. The continued progress of their economies and trade relations warrants good relations between them in the Indian Ocean and beyond.

Key points:

• The twenty-first century has been referred to as the Asian Century because of the dominant role that is expected to be played by Asian countries.
• The two main actors in the Asian Century are, predictably, the two most populous countries: China and India.
• Both China and India are already among the world’s largest economies.
• Their economic development is dependent on foreign sources of energy, which is imported mostly from the Persian Gulf and East Africa, via the Indian Ocean.
• Similarly, a large proportion of their external trade is transacted through the Indian Ocean.