Since the outbreak of the COVID-19 pandemic crisis, the Chinese approach to African countries has changed. Beijing is gradually shifting from the investment model to a local development approach based on an emphasis on win-win partnerships within the Belt and Road Initiative’s framework. The expansion of China’s economic influence has been followed by a growing interest in African political and security issues. As a result, China has increased its strategic projection. Drawing on the Djibouti case study, this research intends to grasp the more recent developments in the security interactions and political and economic engagement that tie China to the small African country. Specifically, the article investigates Djibouti’s role in China’s international strategy. It aims to analyse the motivations, tools, and aims of the Chinese strategic engagement with Djibouti. The rationale of the article is that the consolidation, including military, of the Chinese footprint in Djibouti makes the small African country and the entire Red Sea region a potential testing ground for examining some of the dynamics of balance and rivalry between China and the United States.