Bangladesh’s relations with China are set to take a new turn following Prime Minister Tarique Rahman’s official three-day state visit to Beijing, during which he will hold discussions with Chinese Premier Li Qiang today, Thursday. The talks will cover a wide range of issues, including trade, investment, infrastructure development, energy and most importantly water management.
Additionally, between 15 and 17 bilateral instruments aimed at strengthening cooperation in various economic and industrial sectors are expected to be finalized and signed to attract more Chinese investment into Bangladesh.
Suffice it to say that Chinese investments in Bangladesh are visible across a broad range of mega projects. China has become Bangladesh’s second-largest source of foreign investment, with nearly 700 Chinese enterprises currently registered with the country’s investment authorities. These companies are engaged in sectors such as energy, transportation, textiles and garments and information and communications technology, creating hundreds of thousands of jobs for local communities.
In fact, Chinese investments had started pouring into Bangladesh after the historic visit of Chinese President Xi Jinping to Dhaka in 2016, when China made a $24 billion investment commitment to finance around 27 infrastructure development projects. At that time, Bangladesh joined the BRI as the first South Asian country.
On the trade front, China has become a major trading partner of Bangladesh. From 2010 to 2025, it remained Bangladesh’s largest trading partner for 16 consecutive years, although the trade balance largely favoured China. To help reduce the trade gap, China has granted zero-tariff treatment to 100 percent of taxable items exported from Bangladesh and extended this facility until 2028.
In the power sector, a major solar energy agreement could be signed during the Prime Minister’s current China visit. This is because Bangladesh government plans to bring agricultural irrigation pumps in rural areas under solar power in an effort to reduce the substantial fuel subsidies currently provided to farmers for irrigation.
Indeed, China has already established a significant presence in Bangladesh’s power sector. China-contracted power projects in Bangladesh, including coal-fired, solar and wind power plants, have reached a total installed capacity of more than one gigawatt, providing a steady source of electricity for the country.
What is more, Dhaka is likely to seek Chinese expertise and assistance in large-scale water management efforts, particularly in implementing the Teesta Comprehensive Management and Restoration Project. Earlier this year, the Bangladesh Water Development Board signed an extension to a memorandum of understanding with the Chinese state-owned company POWERCHINA for the project.
The Teesta project, which aims to regulate the Teesta River through river training, capital and maintenance dredging, construction of new embankments, repair of existing ones, land reclamation using dredged materials and management of dry-season flows through water storage facilities, is expected to be implemented despite India’s concerns over China’s involvement.
India’s apprehension stems from the project’s location near the strategically sensitive Siliguri Corridor, commonly known as the Chicken’s Neck, which connects India’s northeastern states with the rest of the country. Consequently, any external influence in the area, particularly China’s presence, is viewed with concern by New Delhi.
Despite India’s reservations about the Teesta project, people of Bangladesh believe that the government will proceed with its implementation to protect the residents in the country’s northern region against the backdrop of the long-pending Teesta water-sharing agreement with India remaining unresolved.
