The United States has long sought to limit China’s strategic expansion, particularly in Asia and the Middle East. A key element of this effort involved supporting India’s development of the Iranian port of Chabahar, envisioned as a trade corridor to Afghanistan and Central Asia that bypasses Pakistan and counters the Chinese-operated Pakistani port of Gwadar.

Successive US administrations recognized Chabahar’s strategic value and granted sanctions waivers allowing the port to operate despite heightened tensions with Iran. India’s investment in the port terminal totaled approximately US$120 million, a modest figure compared to the US$62 billion invested in the China-Pakistan Economic Corridor (CPEC), a flagship project of Beijing’s Belt and Road Initiative.

However, under US President Donald Trump, the US approach has shifted. Trump has adopted a more conciliatory tone towards China, which has affected the US stance on Iran and its regional strategy. This shift has coincided with diminished enthusiasm for the Quad security partnership between the US, India, Australia, and Japan, including the cancellation of a summit last year after Trump declined to travel to India.

These developments have contributed to the erosion of one of the few assets designed to constrain China’s influence in the Middle East, complicating the long-term US strategy in the region.

Sources

  • South China Morning Post World, "How Trump’s Iran ‘own goal’ is hitting long-term US strategy to contain Chinese influence," Khushboo Razdan, July 27, 2026, link