From the Overview: "Djibouti is pursuing an ambitious agenda to transform itself into a commercial trade hub for the Horn of Africa region. This effort is being financed largely by the People's Republic of China (PRC), which is playing a growing role in the tiny country. China's engagement is multifaceted, ranging from major infrastructure investments to the establishment of its first overseas military base in the country. China considers Djibouti part of its Belt and Road Initiative; in late 2017 the two countries declared that they had established a 'strategic partnership.' U.S. policymakers have raised concern about China's role in Djibouti, given U.S. strategic interests in the region and the proximity of China's base to U.S. military facilities there."
CRS In Focus, IF11304
Congressional Research Service: https://crsreports.congress.gov/