Pakistan in the last week of January 2013 approved the deal which transferred operational control of Gwadar port from Singapore’s PSA International to Chinese Overseas Port Holdings Ltd. Gwadar port is situated at a strategic location of the Arabian Sea and the mouth of the Persian Gulf. It is only 400 kilometres away from the Strait of Hormuz, a key global oil supply route.
Pakistan’ decision to hand over Gwadar port to China is a serious concern for India. It can be an attempt by China to encircle India. In addition to funding ports in Sri Lanka, China has also plans to build a port in Bangladesh.
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