Beijing’s participation could be seen as an extension of its influence in South Asia, and particularly in Bangladesh, where China is already heavily invested in infrastructure projects. Former Prime Minister Sheikh Hasina was very sensitive to Indian concerns.
Despite these concerns, Bangladesh has shown an interest in securing Chinese support.
Yunus urged Chinese firms to invest in the Teesta project. The Bangladesh government had previously sought a loan of USD 725 million from China but has faced delays due to the project’s financial viability.
China, however, has expressed cautious optimism, noting that while the project is still in its conceptual phase, it could be developed in stages with Chinese involvement.
Prime Minister Sheikh Hasina, during her visit to India in June 2024, emphasised that while Bangladesh appreciated China’s readiness to participate, she would prefer India to take the lead on the project, signaling the delicate balancing act Dhaka faces between its two powerful neighborurs.