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Subject

Geopolitics in the Indian Ocean.

Significance

Confirmation on December 31 that China was building a second aircraft carrier follows a visit by Indian Defence Minister Manohar Parrikar to the United States, where he discussed US-India cooperation on aircraft carrier technology and fighter jet engines, and Indian participation in US-led military exercises was announced. Also in December, agreements were signed during a visit to India by Japanese Prime Minister Shinzo Abe on military technology, nuclear energy and transport infrastructure. In October, Japan joined the US-India Malabar naval exercises on a permanent basis.

Impacts

China's Maritime Silk Road may acquire a military dimension with arms sales and port visits by Chinese naval vessels.

Tokyo will pursue cooperation with Delhi as a hedge both against Beijing and, potentially, against over-reliance on Washington.

Japan's stake in the region will grow with new investments in transportation infrastructure and civil nuclear energy.

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