Drivers Behind the People's Republic of China's Port Investments: Cases in Darwin, Australia and Hambantota, Sri Lanka - Primary Reason for Chinese Leases is Domestic Economics and International Trade

This important December 2017 report has been professionally converted for accurate flowing-text e-book format reproduction.

This study analyzes Chinese investment in the Northern Territory Government's Port of Darwin in Australia and the Port of Hambantota in Sri Lanka. It examines whether security concerns or economic objectives are driving Chinese, Australian, and Sri Lankan behavior. Through a detailed analysis of available policy statements and economic data, the study explores what each state seeks to gain from port development. The study shows that the People's Republic of China's primary reason for obtaining port leases in Darwin and Hambantota is to facilitate international trade and the growth of its domestic economy. Sri Lanka and Australia also are principally motivated by economic goals. They both lack sufficient domestic funds to accomplish their own large-scale port development goals, with Darwin modernizing the port and in Hambantota building the port. Australia and Sri Lanka view Chinese companies as picking up the bill and aiding in domestic economic development. In the case of Sri Lanka, it also favors Chinese investment in Hambantota because it considers an increasing Chinese presence in South Asia to be a useful counterbalance to growing Indian power in the region.

I. INTRODUCTION * A. MAJOR RESEARCH QUESTION * B. SIGNIFICANCE OF THE RESEARCH QUESTION * C. RESEARCH DESIGN * D. LITERATURE REVIEW * 1. Chinese Security Drivers * 2. Chinese Economic Drivers * 3. Sri Lankan Drivers * 4. Australian Drivers * II. CHINESE DRIVERS * A. CHAPTER INTRODUCTION * B. ECONOMIC FOCUSED * C. SECURITY FOCUSED * D. SHORT BACKGROUND MSR PORTION OF OBOR * E. ECONOMIC CONCERNS * 1. Facilitation of Economic Growth * 2. Market Access and Stability * 3. Imports and Developing State Utilization * 4. Sea Route Support * 5. Transitioning to New Growth Model * F. POLICY CONCERNS * G. SECURITY CONCERNS: ENERGY AND SEA ROUTE SECURITY * 1. Energy Security * 2. Sea Route Security * H. CHAPTER CONCLUSION * III. SRI LANKAN DRIVERS * A. CHAPTER INTRODUCTION * 1. Balancing or Bandwagoning? * 2. Contextualizing the Sri Lankan Security Concerns * 3. The Threat of India * 4. Sri Lanka Brings the PRC in to Balance: Four Threat Factors * 5. India's Rebuttal: India is not a Threat to Sri Lanka * 6. Sri Lanka Conclusion * IV. DARWIN DRIVERS * A. DARWIN INTRODUCTION * B. AUSTRALIAN FEDERAL GOVERNMENTAL INDO-PACIFIC REASONING * C. THE PRC'S INDO-PACIFIC GAZE * D. AUSTRALIAN FEDERAL GOVERNMENT'S THOUGHTS TOWARD THE LEASE * E. NORTHERN TERRITORY GOVERNMENTAL POSITION * F. CHAPTER CONCLUSION * V. CONCLUSION * A. CHINESE ECONOMIC DRIVER FINDINGS * B. CHINESE SECURITY DRIVER FINDINGS * C. SRI LANKAN DRIVERS TO LEASE HAMBANTOTA FINDINGS * D. AUSTRALIAN DRIVERS TO LEASE DARWIN FINDINGS * E. CONCLUDING CONJECTURES ON CHINESE REASONING FOR OVERSEAS PORTS * F. A MORE SPECULATIVE CONJECTURE ON THE CHINESE REASONING FOR OVERSEAS PORTS * G. CONCLUDING CONJECTURES ON SRI LANKAN REASONING FOR LEASING HAMBANTOTA * H. CONCLUDING CONJECTURES ON AUSTRALIAN REASONING FOR LEASING DARWIN * I. CONCLUSION