China's Investment in Bangladesh: India's Apprehension and Bangladesh Responses

Abstract

Bangladesh is the closest neighbor of India rather than China. India has a certain advantageous position in its multifaceted relations with Bangladesh. Both countries shared common history, trade and commerce, social, religious, and cultural traditions from a long time ago. On the other hand, Beijing is the top development partner of Dhaka and since 1980, it has been steadily investing in Bangladesh. Last five years China’s investment has increased in Bangladesh. Bangladesh is one of the top customers of Chinese arms and ammunitions. In addition, China is investing a lot in the Bay of Bengal (BoB) region including its upgrading Chittagong port as well as intended to build another deep sea port in Bangladesh, which is viewed by many scholars as a part of Chinese ‘String of pearls’ strategy. This study is in view of looking at whether Bangladesh is a part of China’s string of pearls strategy or not. This article concludes that China’s investment in Bangladesh is not a matter of security concern for India. In fact, Bangladesh has engaged with China for the country’s development as China is the second world largest economy and is projected to outdo the USA within a short period.