Key facts
- Bangladesh's new government is seeking Chinese investment and partnership to revive its economy.
- Prime Minister Tarique Rahman visited China and held talks with President Xi Jinping.
- Bangladesh and China agreed to a joint study on managing the Teesta River and developing a special economic zone.
- India views China's growing influence in Bangladesh with concern, especially regarding border security.
- Relations between Bangladesh and India have been strained since the overthrow of former PM Sheikh Hasina, who is now in Delhi.
- Despite tensions, India and Bangladesh are taking steps to reset bilateral ties, including resuming bus services and trade.
Bangladesh's new government, led by Prime Minister Tarique Rahman, is actively seeking increased investment and partnership from China to revitalize its economy. This strategic outreach comes even as Dhaka endeavors to mend and re-balance its long-standing relationship with neighboring India. Rahman's recent overseas visits, notably to China, signal a recalibration of Bangladesh's foreign policy priorities.
Analysts suggest Rahman's choice to visit China early in his tenure is a significant message to India, which has historically been a primary destination for new South Asian leaders. The visit has drawn attention due to agreements on managing the Teesta River and developing a special economic zone near Mongla port, projects closely watched by India given the regional competition for influence.
Relations between Dhaka and Delhi had deteriorated following the overthrow of former Prime Minister Sheikh Hasina in August 2024, who subsequently sought refuge in Delhi. Diplomatic ties remained strained under the interim government. However, since Rahman's election victory in February, both nations have initiated efforts to reset their relationship. Former Indian foreign secretary Shyam Saran noted a relaxation of tensions, with cross-border economic activities and visa issuance gradually normalizing.
Despite these positive steps, irritants persist. Anti-India sentiment in Bangladesh, fueled by perceived support for Hasina and controversial actions by the Indian Border Security Force, has caused public dissatisfaction. Alleged inflammatory comments by Hindu-nationalist politicians during India's West Bengal state elections have further complicated the situation.
China's potential involvement in managing the Teesta River is a sensitive security issue for India, given their own border disputes and the strategic importance of the Siliguri Corridor. Bangladesh argues that China possesses the expertise and financial resources to undertake such a large-scale project, noting India's prolonged indecision on previous invitations. Chinese officials have stated that cooperation with Bangladesh does not target any third party.
China is already Bangladesh's largest defense supplier and a significant creditor. Beijing has also proposed developing an economic corridor connecting China, Myanmar, and Bangladesh. India views South Asia as its sphere of influence, but China has consistently expanded its presence in the region.
The continued presence of Sheikh Hasina in Delhi complicates political efforts for Rahman to visit India. However, India's strategic and economic importance to Bangladesh, and Bangladesh's vital role in India's northeastern security, suggest that a stable relationship remains crucial for both nations. Rahman faces a challenging diplomatic task in balancing the interests of these two regional powers.