China’s frustration is over its massive investment in Bangladesh which, senior Indian government officials said, is a part of its overall South Asian plan. China is angered with both the United States and India because of the two nations’ arms deal, which has been labelled “dangerous for the region” by Beijing.
The other reason China is angered is attributed to US President Donald Trump’s appeasement of Prime Minister Narendra Modi regarding the issue of Bangladesh. Trump, during his meeting with the Indian Prime Minister, dismissed the fact that the US deep state had no involvement in the Bangladesh uprisings and stated: “There was no role for our deep state.
This is something that the Prime Minister [Modi] has been working on for a long time, for hundreds of years, frankly, I have been reading about it. I will leave Bangladesh to the Prime Minister.” China’s irritation is due to its massive stakes in Bangladesh which, senior Indian government officials explained, are part of its larger South Asian strategy. Some of the Chinese expansionism in the nation includes BRI, infrastructure, and energy project investments.
Chinese financing usually includes China Exim Bank loans to Bangladeshi firms and subsequently, the firms reach out to Chinese companies for construction. Chinese state-owned enterprises (like China Road and Bridge Corporation) have a stranglehold on construction, excluding local industry participation,” sources added.
China has committed $40 billion to Bangladesh and of this $26 billion has already gone into infrastructure and energy development. Bangladesh has been warned of the expensive loans by even the International Monetary Fund (IMF) itself but it contends that the loans are within limits. Chinese loans are attached to Chinese contractors and increase costs as well as the risk of debts.
The location of Bangladesh serves as an integral component of China’s Belt and Road Initiative (BRI) since it connects China with strategic sea lanes. Investment projects for the Payra Port allow China access to the Bay of Bengal, easing its reliance on the Malacca Strait as the source for its trade corridors.
“China seeks to counterbalance India’s hegemony in South Asia by placing Bangladesh in a debt trap through investment and defence ties. One of the fastest-growing economies and one of China’s dumping targets, Bangladesh is,” the sources said.
