Abstract
As maritime trading becomes an increasingly important element of the modern Chinese economy, concerns in Beijing are being raised about the safety of vital sea lanes. Central to this thinking has been Hu Jintao’s explanation of the “Malacca Dilemma” in late 2003, which describes the problem of sea routes crucial to China’s trade, especially the Malacca Straits, being subject to interdiction from another state. At the same time, the international war on terror has also raised the specter of economic terrorism aimed at disrupting commerce via the Straits. Due to the complex nature of these potential threats, there is the temptation for China to address the “Dilemma” unilaterally as the country modernizes its naval forces. However, it remains in Beijing’s interests to work both with littoral states and other great powers in ensuring greater security in the Malacca region.