Washington protested against the China–Djibouti pact and expressed concern over China’s plans to build a military base in the Obock region, but to no avail. That’s hardly surprising in light of the huge economic package that Beijing offered Guelleh. In the run-up to the deal, China Merchant Holdings, a sizable state-owned enterprise, purchased a large stake in the country’s vital Port of Djibouti, spending $185 million. To further drum up enthusiasm, Beijing threw in an offer to develop the port’s facilities—awarding the state-owned China State Construction Engineering Corporation a $420-million contract to begin this work—as well as improve the infrastructure that supports the port’s functioning, including a railway to Ethiopia and two international airports.