LAUSR

ABSTRACT China’s military presence and seaport constructions in the West Pacific and the Indian Ocean have prompted hostile reactions from the US, Japan, Australia, and India. Conversely, its dual-use base in Djibouti has not generated as much controversy hitherto. To decipher this enigma, the article analyzes the base within the context of China’s ‘latent power.’ China cultivates latent power for economic interests in the Middle East and Africa, while downplaying the military dimension of its growing global power. The study of Djibouti supports the hypothesis, which reflects China’s risk-aversion, pragmatism, low-key behavior, and emphasis on the security-economy nexus. With latent power at its core, China’s foreign policy in regions beyond its immediate borders advances its strategy of co-existence while avoiding conflict with its rivals.