Iran intends to build a military base in the Indian Ocean to protect fishing and commercial vessels from piracy and ‘foreign ships’ (referring to the US-led multinational naval task force currently protecting Gulf shipping from Iranian interference). A new agreement will give China access to Iranian ports. China is reportedly planning to build a new military base near Iran’s Chabahar port to enable the Chinese navy to monitor the activities of the US navy, which protects shipping passing through the Strait of Hormuz, one of the world's most important economic waterways. Any expansion in Iranian and Chinese military activity in the region would impact on the jointly-administered US / UK base on the island of Diego Garcia, one of the most important US military assets in the region. Tehran also plans to sign a $400 billion trade deal with China, which includes closer military cooperation between them to counter ‘Washington's dominance’.