By NE NOW NEWS
Guwahati: Bangladesh has formally handed over the development of a strategic economic zone near Mongla Port to a Chinese state-owned company, marking a significant shift in the country’s infrastructure partnerships and adding a new dimension to China’s expanding presence in the Bay of Bengal.
The agreement was signed during Bangladeshi Prime Minister Tarique Rahman’s recent official visit to China, where the two countries elevated bilateral ties and concluded multiple agreements covering infrastructure, trade and industrial cooperation.
The project involves the development of an economic zone on land that had originally been reserved for an Indian-backed industrial project under an agreement signed between Dhaka and New Delhi more than a decade ago. However, after years of little progress, Bangladesh‘s interim government removed the site from India’s allocation in 2025, paving the way for Chinese investment.
Located beside Mongla Port-Bangladesh‘s second-largest seaport after Chattogram-the proposed industrial zone is expected to boost manufacturing, logistics and exports while strengthening economic activity in the country’s southwest. The port’s strategic location on the Bay of Bengal has made it an important gateway for regional trade and connectivity.
The move is being closely watched in New Delhi, where strategic experts view the project as another indication of Beijing’s growing influence in South Asia. While the economic zone is officially a commercial venture, analysts say China’s increasing involvement in ports and transport infrastructure around the Indian Ocean has heightened India’s security concerns.
The Mongla project forms part of a broader expansion of Bangladesh-China cooperation. During Rahman’s visit, the two countries agreed to deepen collaboration in infrastructure development, artificial intelligence, green technology, healthcare, education and the proposed China-Myanmar-Bangladesh Economic Corridor. Beijing also expressed support for projects related to the Teesta River and port development.
For India, the development represents a diplomatic and strategic setback, as the economic zone had long been expected to strengthen New Delhi’s economic footprint in Bangladesh. The transfer of the project to China reflects Dhaka’s efforts to diversify foreign investment while reinforcing its growing economic engagement with Beijing.