Abstract
Indian Ocean has always remained a center of economic development and security of Asian states. Therefore, China’s shift from Pacific Ocean to Indian Ocean for the sake of energy security and economic development can be seen. China has developed a network of ports and naval bases in Indian Ocean through diplomatic means for expanding its influence. This study aims to examine the nature of string of pearls strategy of China that how China is utilizing its economic tools to fulfill its commercial interest in the larger Indian Ocean region. International community often relates “string of pearls” strategy with China’s hostile naval build up in IOR by creating network of naval bases along the littorals of Indian Ocean. This article has emphasized on the commercial nature of string of pearls strategy with reference to the South Asian States under soft power theory. Though it’s a challenging task for China to increase its influence in the Indian proximity but China is operating on the principle of creating common grounds for both the host states as well as donor state in the South Asian region.