Bangladesh’s interim Chief Adviser Muhammad Yunus has concluded his four-day official visit to China, marking a significant step in Dhaka’s growing engagement with Beijing. During his meetings with Chinese President Xi Jinping, Yunus highlighted the importance of considering China as a key economic partner, signaling a shift in Bangladesh’s foreign policy priorities.

China as a Strategic Economic Partner

Speaking to Chinese state media, Yunus underscored Bangladesh’s reliance on China for economic growth, particularly in infrastructure development and industrial expansion. With nearly 1,000 Chinese companies already operating in Bangladesh, Yunus expressed his intent to increase foreign direct investment (FDI) from China to revive Bangladesh’s struggling economy.

China has become Bangladesh’s largest trading partner, supplying industrial raw materials, technology, and manufacturing expertise. Bilateral trade volume has surged, with China providing concessional loans and investment in key infrastructure projects, including power plants, bridges, and special economic zones (SEZs).

Teesta River Project: A Shift from India to China?

One of the most notable developments during Yunus’ visit was Bangladesh’s willingness to allow Chinese companies to participate in the Teesta River Comprehensive Management and Restoration Project (TRCMRP).

The Teesta project, aimed at flood control, irrigation, and hydroelectric development, was previously considered for India's involvement under the former Sheikh Hasina government. However, under Yunus' administration, China is being seen as a more viable partner for executing the project, a move that may raise concerns in New Delhi.

Strengthening Trade, Culture, and Medical Tourism

During the visit, Bangladesh and China signed nine agreements, covering:

• Economic and technical cooperation to support infrastructure and industrial development.

• Cultural and educational exchanges including translation and publication of literary works.

• Medical tourism collaboration, allowing Bangladeshi patients to receive treatment in Kunming, China, reducing dependency on India’s healthcare system.

As part of this initiative, China has dedicated four hospitals in Kunming exclusively for Bangladeshi patients. However, the high cost of airfare remains a challenge, and discussions are underway to launch direct flights between Chittagong and Kunming to facilitate easier access.

China’s Cautious Approach Amid Bangladesh’s Political Uncertainty

Despite the growing engagement, China remains cautious in making major commitments, closely observing Bangladesh’s political landscape. Pressure is mounting on the Yunus-led government to hold elections, adding uncertainty to long-term investment prospects.

China’s state-run Global Times highlighted Bangladesh’s youth unemployment crisis, emphasizing the need for industrial relocation and job creation through Chinese investment. With Western financial support uncertain, China is positioning itself as a key economic lifeline for Bangladesh.

Implications for South Asia’s Geopolitics

Bangladesh’s pivot towards China could reshape South Asian geopolitics, especially in its relations with India. As China deepens its economic and infrastructure footprint in Bangladesh, New Delhi may reassess its regional strategy to maintain influence.

Meanwhile, Yunus is set to visit Thailand for the BIMSTEC Summit, where he has sought a meeting with Indian Prime Minister Narendra Modi. However, India has yet to confirm the meeting, signaling potential diplomatic friction over Bangladesh’s increasing alignment with China.

Looking Ahead: Bangladesh’s Economic Future with China

As Bangladesh navigates its economic crisis, the success of these agreements will depend on China’s actual investment commitments and Bangladesh’s ability to manage geopolitical tensions. With the BIMSTEC Summit and further negotiations on the horizon, Yunus’ administration is betting on China as a stabilizing force for economic recovery.

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