How China can help Bangladesh escape India’s foreign policy grip

Bangladesh’s interim leader Muhammad Yunus concluded a four-day visit to China last month, marking his first state visit since assuming office. Significantly, he chose to be in Beijing on Bangladesh’s independence day.

During his trip, Beijing committed to US$2.1 billion in investments, loans and grants, including US$400 million to modernise Mongla Port and US$350 million to develop an industrial zone to host Chinese manufacturing and boost Dhaka’s capacity. Yunus also sought Chinese support to advance Bangladesh’s textile, pharmaceutical and renewable energy sectors.

Given Bangladesh’s India-dominated foreign policy under ousted prime minister Sheikh Hasina, Yunus’ visit may be seen as a pivot towards Beijing in a bid to escape India’s foreign policy grip and draw closer to Southeast Asia and the rest of the Indo-Pacific.

Hasina had helped strengthen India’s access to its northeastern states and the Bay of Bengal. In November 2023, Indian Prime Minister Narendra Modi attended the inauguration of two rail links that India had helped fund – Akhaura-Agartala and Khulna-Mongla Port. The former, which passes through Bangladesh, cuts travel time between two Indian cities, Agartala and Kolkata, from 31 to 10 hours, bypassing the congested Siliguri Corridor.

Five bus routes now connect major cities in both countries. Bangladesh also lets India use its Chittagong and Mongla ports. Meanwhile, India has extended credit lines of US$8 billion to Bangladesh.

These links bolster their economic and strategic ties, enable smoother military and trade transits, and make Bangladesh India’s top subcontinental trading partner.

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