Policy Brief: BRI in Bangladesh
New opportunities, not without Risk & Cost

Executive Summary

Bangladesh and China share deep historical and cultural ties that have evolved into a comprehensive strategic partnership, which has been strengthened since Bangladesh joined the Belt and Road Initiative (BRI) in 2016. Under this framework, China has pledged over USD 24 billion in loans and aid, financing major infrastructure in transport, energy, and technology. With an annual trade value of USD 24 billion, China is Bangladesh’s largest trading partner and a key driver of industrial modernisation through investment, technology transfer, and capacity building.

Bangladesh's BRI partnership poses significant risks and costs. Chinese loans are often high-interest and opaque. Approximately 59% of BRI projects are associated with governance or environmental hazards. Serious human rights and labour issues exist, highlighted by the deadly Banshkhali coal plant protests. Chinese-backed coal and WTE projects contradict Bangladesh's climate targets. Furthermore, Chinese entities often disregard local concerns and information requests, thereby undermining trust and hindering the resolution of disputes.

Despite these challenges, the partnership offers significant potential for a green energy shift, industrial and technological growth, and improved regional connectivity. With Bangladesh targeting 40% renewable energy by 2040, Chinese finance and technology are vital. Expanding cooperation in ICT, manufacturing, and trade corridors, such as the BCIM Economic Corridor, will integrate Bangladesh into regional value chains.

To ensure a sustainable and mutually beneficial relationship, policymakers should prioritise transparency, accountability, and environmental safeguards, including:

1. Promoting a Green BRI through phasing out fossil fuels and false solutions, and investment in renewable energy and climate adaptation;

2. Mandating independent ESIAs and robust community consultations, and enhancing transparency by disclosing project terms and ESG data;

3. Improving responsiveness of Chinese agencies and firms via formal monitoring and grievance systems;

4. Respecting local laws, culture and human rights, including labour rights in Bangladesh

5. Ensuring debt sustainability through concessional and diversified financing; and

6. Integrating technology transfer clauses into joint ventures.

If these measures are implemented, the BRI can evolve into a model for equitable, climate-resilient cooperation, turning infrastructure growth into inclusive and sustainable development for Bangladesh.