Bangladesh’s relationship with China has evolved into a comprehensive strategic partnership, encompassing economic, geopolitical, and developmental cooperation. As Bangladesh continues to pursue its economic and infrastructural development goals, its alignment with China’s global initiatives has strengthened. This collaboration is particularly evident in Bangladesh’s support for initiatives such as the Belt and Road Initiative (BRI) and the Global Development Initiative (GDI). These frameworks provide Bangladesh with opportunities for infrastructure development, economic growth, and regional connectivity while also presenting challenges related to debt management, sovereignty, and geopolitical balancing.
The Global Development Initiative (GDI) was introduced by Chinese President Xi Jinping in 2021 as a multilateral framework aimed at accelerating progress toward the Sustainable Development Goals (SDGs) by 2030. It focuses on addressing pressing global challenges, including poverty reduction, food security, climate change, and green development. As part of its commitment to global development, China has mobilized international support for the initiative, with over 100 countries and international organizations endorsing it, and more than 80 countries joining the Group of Friends of the GDI.
Key Aspects of the GDI
To foster inclusive, green, and resilient global development through revitalized partnerships and targeted interventions in key areas such as poverty alleviation and sustainable growth. The GDI emphasizes a people-centered approach, equitable benefits for all, innovation-driven progress, ecological sustainability, and results-oriented actions. As a developing country with ambitious economic goals, Bangladesh stands to gain from the GDI’s focus on infrastructure, sustainable development, and technology transfer, enhancing its capacity to meet its own SDG commitments.
Bangladesh’s engagement with the GDI reflects its broader strategy of leveraging international partnerships to drive socio-economic progress while navigating the complexities of global power dynamics. As the country continues to strengthen its ties with China, understanding the implications of these collaborations becomes crucial for shaping future policies and sustainable growth trajectories.
China’s Global Initiatives and Bangladesh
The historical trajectory of Bangladesh-China relations has been marked by steady diplomatic engagement and growing economic cooperation. While the foundation was laid decades ago, significant milestones have been achieved in recent years. A turning point came in 2016 when Bangladesh formally joined China’s Belt and Road Initiative (BRI), signing agreements to implement 26 projects aimed at bridging infrastructure gaps and accelerating economic growth. These projects have encompassed major investments in power generation, railway expansion, road development, tunnel construction, and ICT infrastructure. By 2023, Chinese investments in Bangladesh had surged to $3.2 billion annually, solidifying China’s position as the country’s second-largest foreign investor.
Beyond the BRI, Bangladesh has actively embraced several of China’s global initiatives. Under the BRI framework, Bangladesh has positioned itself as a key partner in regional connectivity, with transformative projects like the Padma Bridge Rail Link and the Karnaphuli Tunnel significantly enhancing transport and trade networks. Between 2016 and 2022, Chinese state-owned and private enterprises collectively invested nearly $26 billion in Bangladesh under the initiative. Additionally, Bangladesh has aligned its long-term Vision 2041 goals with China’s Global Development Initiative (GDI), launched in 2021, to promote sustainable development, poverty alleviation, and energy security. Moreover, as part of its strategic engagement with Beijing, Bangladesh has expressed support for China’s Global Security Initiative (GSI) and Global Civilization Initiative (GCI), which emphasize principles of mutual respect, non-interference, and cultural exchange. Through these collaborations, Bangladesh continues to deepen its economic and diplomatic ties with China, reinforcing a partnership that is poised to shape the region’s future.
Economic Impact of Chinese Investments
Chinese investments have played a transformative role in shaping Bangladesh’s economic trajectory, particularly in infrastructure development, energy, and industrial expansion. Beijing has financed key infrastructure projects, including 21 bridges, 11 highways spanning 550 kilometers, seven railway lines covering 600 kilometers, and 27 energy projects that collectively supply more than half of Bangladesh’s electricity. The energy sector, in particular, has seen substantial Chinese backing, with nearly 90% of upcoming power projects, including coal-based plants like the Payra Thermal Power Plant, being funded by China. These investments have also fueled job creation, with approximately 700 Chinese companies operating in Bangladesh generating over 550,000 jobs for local workers. Furthermore, China’s involvement extends to special economic zones, such as the Bangabandhu Industrial Park, where dedicated export-processing zones have been set up to attract Chinese investors.
Geopolitical Dimensions
Beyond economics, China’s engagement with Bangladesh carries profound geopolitical implications. Bangladesh’s strategic location between India and Myanmar positions it as a crucial player in China’s broader ambitions to expand its influence in the Indian Ocean region. This geostrategic importance has led Dhaka to maintain a delicate balancing act, managing its ties with China while also engaging with India and the United States. Amidst growing U.S.-led Indo-Pacific initiatives, Bangladesh continues to reassess its BRI strategy to navigate regional power dynamics effectively. Politically, China remains a key ally, providing strong diplomatic backing to Prime Minister Sheikh Hasina’s government against external pressures. This unwavering support underscores China’s role as a stabilizing force in Bangladeshi politics, further cementing their strategic partnership in an evolving global landscape.
While Chinese investments have significantly contributed to Bangladesh’s development, concerns persist regarding dependency and strategic vulnerabilities. One of the primary apprehensions revolves around the risk of a debt trap, as critics argue that some Belt and Road Initiative (BRI) projects may be commercially unviable, potentially leading to debt distress similar to that experienced by other developing nations. Additionally, Bangladesh’s heavy reliance on Chinese investments in key sectors such as energy and transportation raises questions about economic diversification and long-term sustainability. The growing Chinese presence in the country also introduces geopolitical complexities, as it may strain Dhaka’s delicate balancing act between India and Western allies like the United States.
Despite these challenges, the future of Bangladesh-China relations appears promising, with both nations striving to strengthen their partnership. China has outlined plans to prioritize high-quality cooperation in infrastructure development, ICT advancements, renewable energy, and agricultural modernization, aligning with the principles of the Global Development Initiative (GDI). The upcoming 50th anniversary of diplomatic relations presents a valuable opportunity to further elevate bilateral ties and explore new avenues of collaboration. However, experts emphasize the need for Bangladesh to adopt a diversification strategy, reducing its dependence on a single partner by expanding its foreign investment portfolio. By doing so, Dhaka can ensure a more balanced and resilient economic trajectory while continuing to leverage its strategic partnership with China.
Bangladesh’s support for China’s global initiatives reflects a pragmatic approach to achieving its developmental goals while navigating complex geopolitical dynamics. While challenges such as dependency risks remain, the partnership continues to offer transformative opportunities for both nations. As Dhaka aligns its Vision 2041 with China’s GDI principles and actively participates in BRI projects, it positions itself as a key player in regional development—a testament to its rising geopolitical agency amidst competing global powers.
– Syed Raiyan Amir is a Senior Research Associate at the KRF Center for Bangladesh and Global Affairs (CBGA).