China's Strategic Interests in Bangladesh Complicated by India-US Relations

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Tensions are escalating between China and Bangladesh as Beijing seeks to assert its influence in the region, according to top Indian government sources. China has committed approximately $40 billion into Bangladesh as part of its broader South Asian strategy, notably through infrastructure and energy projects linked to the Belt and Road Initiative (BRI). The Chinese engagement aims to ensnare Bangladesh in a debt trap, complicating the geopolitical landscape in South Asia.

Recent comments from U.S. President Donald Trump, who stated, “I will leave Bangladesh to the Prime Minister,” during a meeting with Indian Prime Minister Narendra Modi, have further incited Beijing's frustration. China has criticized the arms deal between the U.S. and India, branding it “dangerous for the region.” As of 2023, Bangladesh's outstanding debt to China was approximately $6 billion, representing less than 7% of its total external debt.

Despite warnings from the International Monetary Fund about the risks of Chinese loans, Bangladesh insists the situation is manageable. The ongoing support from both China and the U.S. adds complexity to the new Bangladeshi government's challenges following the ouster of former Prime Minister Sheikh Hasina.

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