Bangladesh’s new government is pursuing large-scale Chinese investment to revive its economy while attempting to maintain balanced relations with neighboring India. Prime Minister Tarique Rahman’s first foreign visits to Malaysia and China last month signaled a new direction in Dhaka’s foreign policy. During his Beijing trip, several bilateral agreements were signed, including on Teesta River management and a special economic zone near Mongla port, drawing close attention from both India and China.

Relations between Dhaka and New Delhi cooled after Sheikh Hasina’s ouster in August 2024 and her subsequent refuge in India. Although ties have improved since the BNP’s electoral victory in February, lingering tensions remain over border issues and anti-India sentiment in Bangladesh. India’s new high commissioner in Dhaka and partial resumption of cross-border transport indicate cautious normalization.

China’s involvement in the Teesta project has raised Indian security concerns due to its proximity to the Siliguri Corridor. Beijing has stated that its cooperation with Bangladesh is not aimed at any third party. Analysts note that while Bangladesh values India as a key neighbor, its growing partnership with China reflects a strategic recalibration in South Asia.