Trump's Support for Modi Complicates China's Strategy in Bangladesh

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China is increasingly concerned about its investments in Bangladesh amid rising tensions with India and the United States, according to Indian government sources. China aims to solidify its influence in South Asia by trapping Bangladesh in debt through extensive expenditures on infrastructure and defense projects, which critics argue limit local industry participation.

Recent remarks by U.S. President Donald Trump during discussions with Indian Prime Minister Narendra Modi have further aggravated China's position. Trump dismissed claims of U.S. interference in Bangladesh's internal issues, stating, "I will leave Bangladesh to the Prime Minister," which reflects U.S. support for India's role in the region. This is seen as detrimental to China's interests, particularly as it has committed $40 billion to Bangladesh, of which $26 billion is already invested.

Concerns about the economic sustainability of Chinese loans, which are often tied to contractor stipulations and associated high costs, persist. Critics, including the International Monetary Fund, warn that these arrangements may exacerbate Bangladesh's debt risks. As of 2023, Bangladesh's outstanding debt to China was $6 billion, or approximately 7% of its total external debt.

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