Dr sarath obeysekera ( Ex CEO Colombo Dockyard pvt ltd ) 

Answer

You’re asking whether China could object, from a legal or diplomatic standpoint, if India’s state-owned shipyard (Mazagon Dock Shipbuilders Ltd, MDL) takes over Colombo Dockyard in Sri Lanka—especially given Mazagon’s status as a premier Indian defence contractor. The short answer is: 

Yes, China could object—but such an objection would be political or strategic, not legal under international law.

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Legal Perspective

• Sovereign Business Decision

The acquisition—where MDL seeks a controlling (51%) stake in Colombo Dockyard—is a commercial transaction involving a Sri Lankan company listed on the Colombo Stock Exchange, with shares being purchased from Japan’s Onomichi Dockyard and supplemented by new equity offerings    .

• Regulatory Oversight

The deal is subject to standard regulatory approvals in Sri Lanka and India, such as stock exchange filings and capital raising clearances  . China has no legal grounds to invalidate or obstruct this process—unless there are cross-border treaty obligations or foreign direct investment restrictions that specifically involve Chinese interests, which does not appear to be the case here.

• No Multilateral Enforcement Role

Unless revived in international dispute venues or bilateral treaties, there’s no supranational body that China could invoke to halt or reverse the transaction.

In short: From a legal standpoint, it’s between Sri Lanka and India/joint investors.

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Political or Strategic Objection

• Regional Geopolitics

China has substantial strategic and economic interests in Sri Lanka—from Hambantota Port’s 99-year lease to investments in Colombo Port City. India’s footprint via MDL’s acquisition is clearly seen as a counterbalance to Chinese influence       .

• Past Chinese Reactions

Sri Lanka’s growing alignment with India on maritime matters has spurred unease. For instance, India raised concerns when Chinese surveillance and research ships (Yuan Wang 5, Shi Yan 6) entered Sri Lankan waters   .

• Diplomatic Pressure

While China has expressed disapproval of other Indian-linked developments in Sri Lanka (e.g., Indian-operated container terminals), their actions have mostly taken the form of political and diplomatic signals—not direct intervention   .

All signs point to China potentially lodging diplomatic protests or exerting influence, but not having legal veto power over the deal.

Regards

Dr Sarath Obeysekera