December 19, 2025

New parliamentary panel report flags China’s increasing footprint in Bangladesh A sharper warning on shifting regional dynamics A new report from a parliamentary panel has highlighted China’s growing presence in Bangladesh, warning that the balance of influence in South Asia is shifting more rapidly than many anticipated. The panel’s assessment, focused on economic, infrastructural, and security linkages, underscores how Bangladesh’s rapid development drive has opened wide doors for external partners—with China emerging as one of the most prominent players. The report’s core message is not apocalyptic. Rather, it emphasizes that China’s presence in Bangladesh is a result of Dhaka’s pragmatic pursuit of infrastructure, energy security, and export-led growth. Still, the analysis outlines a clear implication: if regional stakeholders want to remain relevant in Bangladesh’s future—especially in critical sectors such as ports, energy, and high-technology manufacturing—they will need to match the pace, predictability, and financing terms that China has brought to the table. Why Bangladesh matters now Bangladesh sits at the crossroads of South and Southeast Asia, at the mouth of the Bay of Bengal. Its economy, once mostly agrarian, has transformed into one of the region’s growth engines, powered by a vibrant garment industry, rising remittances, and aggressive infrastructure spending. As Bangladesh targets upper-middle-income status in the coming years, it needs ports, power, logistics, and digital infrastructure—quickly and at scale. That imperative has invited substantial foreign participation. China, which signed onto a broad development partnership with Dhaka in the mid-2010s, has become a pivotal investor and contractor across multiple sectors. Bangladesh, for its part, has welcomed a diversified set of partners, from China and Japan to India, the Gulf, the EU, and multilateral lenders, attempting to keep its strategic options open while staying focused on growth. What the panel highlights The parliamentary panel’s report describes a multi-layered expansion of Chinese activity in Bangladesh: Across these sectors, the panel homed in on the speed and scale at which projects have been pursued. It also flagged the policy tools China uses to cement commercial and political goodwill, including tariff concessions on Bangladeshi exports and supportive financing structures for large projects. The Belt and Road backdrop Much of China’s engagement in Bangladesh sits under the broader umbrella of the Belt and Road Initiative (BRI), aimed at boosting connectivity, trade, and supply chains across Eurasia and beyond. Bangladesh signed on to cooperate under this framework, betting that Chinese capital and engineering would accelerate the buildout it needs to sustain growth and reach its development milestones. The results have been uneven but undeniably visible. While some projects have become signature successes, others have faced delays, renegotiations, or environmental and social concerns. The panel’s report acknowledges this mixed picture but notes that, on balance, China’s presence is firmly embedded in Bangladesh’s growth story. Projects that define China’s footprint in Bangladesh Without cataloging every initiative, the report and regional observers frequently point to a few emblematic areas of engagement: Trade, investment, and the balance sheet Bangladesh’s commercial relationship with China has expanded rapidly. China is a top supplier of machinery, intermediates, and inputs to Bangladesh’s manufacturing base, while Dhaka seeks to boost its own exports into the Chinese market. The report highlights the persistent trade imbalance in China’s favor but also notes that duty-free access on a broad basket of Bangladeshi goods has helped nudge exports upward. On financing, the panel urges closer tracking of debt sustainability and contingent liabilities tied to large projects. Bangladesh has historically managed its external obligations conservatively, and the report cautions against alarmism. Yet it argues for greater transparency on terms, careful selection of projects with strong economic returns, and diversification of funding sources—from Japan and India to Gulf funds and multilaterals—to maintain negotiating leverage. Security and strategic implications Even as most Chinese activity in Bangladesh is commercial, the sheer volume of projects creates strategic effects. The panel frames this as a classic “dual-use” dilemma: ports, digital networks, and logistics hubs that serve commerce can, under certain circumstances, carry strategic utilities. The report does not claim the presence of any permanent Chinese military facilities in Bangladesh, nor does it suggest Dhaka is pivoting away from its balanced foreign policy. Instead, it urges a clear-eyed understanding of how commercial entanglements can shape long-term orientation, standards, and dependencies. Regional navies already interact frequently in the Bay of Bengal, and Bangladesh’s maritime modernization continues with inputs from multiple partners. The panel supports deeper maritime domain awareness cooperation, joint training, and humanitarian assistance and disaster relief (HADR) exercises with Bangladesh, prioritizing practical, capacity-building initiatives that deliver immediate benefits. Bangladesh’s balancing act Bangladesh has consistently articulated a non-aligned, interest-based approach to foreign partnerships. It engages China for infrastructure and industry, collaborates with Japan on flagship connectivity and port modernization, and works closely with India on cross-border trade, electricity exchanges, inland waterways, and transit links. In multilateral arenas, Dhaka leans into economic diplomacy while avoiding rigid geopolitical camps. The parliamentary panel recognizes—and respects—this balancing act. Its argument is that the best response to China’s deepening role is not to demand Bangladesh choose, but to ensure Bangladesh has strong alternative options. That requires: Political timing and economic headwinds The report lands as Bangladesh navigates post-pandemic adjustments, foreign exchange pressures, and a complex global trading environment. As garment demand cycles soften and energy prices fluctuate, Dhaka faces short-term stresses even as its long-term fundamentals remain strong. In such periods, external financing packages can appear especially attractive—another reason the panel emphasizes timely project delivery and patient capital from a range of partners. Domestically, Bangladesh continues to invest in human capital, export diversification, and logistics modernization. It is also negotiating the policy steps needed for a smooth graduation from least developed country (LDC) status, which will alter tariff preferences and demand new competitiveness strategies. Recommendations from the panel While couched diplomatically, the report sketches an action plan designed to keep the regional balance healthy and Bangladesh’s choices open: A note on water, climate, and resilience Beyond ports and power plants, the panel gives notable space to water management and climate resilience.