China in Djibouti: Changing the horn of Africa through Investment and Diplomacy

China, a country that has been overtaking the world for the past few decades. China has invested in a lot of countries, such as Venezuela, Russia, Pakistan and many other nations. China’s astonishing GDP of $18.562 Trillion and Unimaginable Military Performance with over 2,000,000 Active Personnel has made other countries lose affrighted, which also prevents countries from having a World War. 

One of the biggest Countries China has invested in, and putting effort into developing the country is Djibouti. Djibouti’s owes China around $1.4 Billion, which is equivalent to more than 1/3 of Djibouti’s GDP. China has also helped many Djibouti build many diplomatic buildings & hospitals. The Port of Djibouti, which is the main reason of Djibouti’s importance, was built by China Civil Engineering Construction Corporation in 2013. 

Most of Djibouti’s infrastructure projects worth $14.4 Billion are funded by Chinese Banks. China pays about $20 Million per year to the Djiboutian Government. Not only that, but China also has a Military Base in Djibouti which was opened in 2017, its revenue being worth over $600,000,000. And that is China’s only base in the world.  

One of the reasons why China has a strong relationship with Djibouti is because of Djibouti’s strategic location on the map, relying on the coast of East-Africa, only 6,000 kilometers away from the Arabic Peninsula. Which expands its access to the Red Sea as a vital gateway for exporting Chinese products to Africa. China Merchants Group, China’s biggest port operator, has signed a $350 million investment deal with Great Horn Investment Holding to transform the Port of Djibouti into a global commercial hub. 

This benefits China and increases the trades with also countries surrounding Djibouti & China. This has completely reduced the trades of Djibouti and China’s Great Enemy, The United States. China expands its influence all over the world, and China is now unstoppable.