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April 26, 2026

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‘A Strategic Prize’: Why the U.S., China and Taiwan Are Competing for Somaliland from BBC Chinese

By Lü Jiahong | Adapted from BBC Chinese

 

HARGEISA, April 26, 2026 (Horn post)— Somaliland is emerging as a new geopolitical focal point in the Horn of Africa, drawing increasing attention from the United States, China and Taiwan as global competition intensifies over strategic waterways, energy resources and diplomatic influence.

 

The shift comes as Taiwan deepens engagement with Somaliland, a self-declared republic that lacks international recognition, while China reinforces its support for Somalia’s territorial integrity and the United States signals growing strategic interest in the region.

 

Taiwan Expands Footprint Amid Diplomatic Pressure

A planned visit by Lai Ching-te to Eswatini — Taiwan’s only diplomatically in Africa — was canceled on April 21 after several African states reportedly denied overflight access, underscoring Taipei’s diplomatic constraints on the continent.

 

In contrast, Taiwan has accelerated cooperation with Somaliland, formalizing ties in 2020 through the establishment of representative offices. Officials describe the relationship as “highly official,” with expanding collaboration in healthcare, agriculture, infrastructure and maritime security.

 

Taiwan’s top envoy in Somaliland, Luo Zhenhua, said awareness of Taiwan has significantly improved locally since his posting in 2020. “Now everyone knows Taiwan,” he told BBC Chinese, reflecting a shift from earlier confusion with mainland China.

 

Taiwan has also backed Somaliland’s democratic processes, including elections in 2021 and 2024, and expanded cooperation into security and energy sectors. State-owned CPC Corporation has invested tens of millions of dollars in oil exploration, with drilling expected to begin as early as 2026 and scale up in 2027.

 

Strategic Geography Drives Global Interest

Located along the Gulf of Aden near the critical Bab-el-Mandeb strait, Somaliland sits on one of the world’s most important shipping corridors, linking the Red Sea, Suez Canal and the Indian Ocean. Roughly 10–12% of global trade, including significant volumes of oil and liquefied natural gas, passes through the route.

 

The port of Berbera Port — developed by DP World — is a critical logistics hub for landlocked Ethiopia and a key asset in regional trade and security calculations.

 

Somaliland is also believed to hold significant reserves of oil, gas and rare earth minerals, increasing its attractiveness amid global energy competition and supply chain diversification.

 

Rising U.S.–China Rivalry

The Horn of Africa is becoming a frontline in broader U.S.–China rivalry. China maintains a strong presence in neighboring Djibouti, where multiple foreign military bases are located, and continues to back Somalia’s sovereignty claims over Somaliland.

 

Following Israel’s reported recognition of Somaliland in late 2025, Beijing reiterated its opposition to Somaliland’s independence and criticized its ties with Taiwan, framing them as separatist activities.

 

Chinese investment in Somaliland remains limited compared to other African markets under the Belt and Road Initiative. However, smaller-scale projects are emerging, including a solar energy agreement involving Zhongteng Microgrid in Berbera.

 

Meanwhile, Washington has shown increasing interest in Somaliland’s strategic positioning, particularly as maritime security concerns rise and competition over Red Sea access intensifies.

 

Energy and Security Reshape Regional Dynamics

Analysts say the region is transitioning from a fragile security environment to a more complex geopolitical arena marked by proxy conflicts, resource competition and military positioning.

 

An estimated 4.2 million barrels of crude oil and petroleum products transit daily through waters near Somaliland — about 6% of global seaborne oil trade — reinforcing its strategic importance.

 

Regional dynamics are further complicated by the involvement of multiple actors, including the United Arab Emirates, Turkey, Israel and Iran-backed Houthi forces, alongside the growing presence of Taiwan.

 

A ‘Strategic Prize’ in a Fragmented Diplomatic Landscape

Despite lacking formal recognition, Somaliland is increasingly viewed as a “strategic prize” — rich in resources and positioned at a critical maritime crossroads.

 

Taiwan sees Somaliland as a like-minded democratic partner and a gateway to expand its global footprint amid diplomatic isolation. For China, the territory represents a challenge to its sovereignty doctrine regarding Somalia. For the United States, it offers a potential foothold in a rapidly evolving security environment.

 

As global energy demand, trade security and geopolitical rivalry converge, Somaliland’s role in the Horn of Africa is set to expand — placing it at the center of an intensifying contest among major powers.

Source: BBC China

Prepared by:

Horn post staff

info@hornpost.com

www.hornpost.com

Hargeisa, Somaliland

 

 

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