Amidst the recent tension in the historical relations between India and Bangladesh, China has made a major diplomatic breakthrough. Bangladesh has officially handed over the project of modernization of its second largest Mongla Port and the Special Economic Zone (SEZ) to be built there. This step is being considered a big strategic blow for India, because this land was earlier allotted to India.
Bangladesh Prime Minister Tariq Rahman had chosen China as his first foreign trip. He concluded his five-day visit with Chinese President Xi Jinping on Friday. During this, both the countries signed a historic agreement to develop SEZ near Mongla Port. Apart from this, both the countries also agreed to increase cooperation in green development, AI and digital economy.
How did this important project slip out of India’s hands?
India had realized the strategic importance of Mongla Port long ago. The story of the project going from India to China is something like this.
- Beginning of 2015: During the tenure of the then Prime Minister Sheikh Hasina, an MoU was signed between India and Bangladesh to develop two Special Economic Zones (SEZ) in Mongla and Mir Sarai in Chittagong. India was going to provide a line of credit (loan) for this.
- 2018-2022 cycle: In 2018, the Government of India selected Hiranandani Group to develop land in Mongla. Four years later, in 2022, an agreement was also signed with Bangladesh Economic Zones Authority (Beza).
- Coup of 2024: In 2024, due to violent protests by students, Sheikh Hasina had to leave power and took refuge in India. After this, during the interim government formed under the leadership of Muhammad Yunus, anti-India sentiments reached its peak in Bangladesh.
- China’s entry in 2025: In 2025, the Yunus government excluded India from the project claiming that the Indian company failed to start work within two years. Taking advantage of this opportunity, the Chinese Embassy in Dhaka proposed to the Yunus government to build a Chinese SEZ on the same 110 acres of land, which has now been finalized by the new government.
Importance of Mongla and Chittagong ports
Mongla and Chittagong ports are considered the backbone of South Asia’s maritime trade.
- Chittagong Port: It is the largest and busiest sea port of Bangladesh. Most of the country’s trade happens from here. Here too, China has agreed to expand the Chinese Economic and Industrial Zone.
- Mongla Port: This is the second largest port of the country. Its geographical location is very special. This port located at Bagerhat is close to Sunderbans and its distance from Kolkata, the capital of West Bengal, is only 188 km. China is going to set up a manufacturing industry, warehouse and storage facility on 110 acres here.
India’s 3 biggest concerns
Alarm bells have rung in New Delhi due to this project going to China. The three important concerns of India are as follows..
- Near Siliguri Corridor (Chicken Neck): Mongla Port is very close to the east coast of India and the border of West Bengal. China’s direct presence here is a matter of concern for India’s national security. India’s Siliguri Corridor is strategically very sensitive. Chinese investment in the port increases the fear of intelligence gathering and espionage.
- Detail of China’s String of Pearls Strategy: China has been trying to encircle India for a long time through its Maritime Silk Road Initiative in the Indian Ocean. China has investments from Gwadar in Pakistan to Djibouti in East Africa. At present, Chinese companies are involved in 17 port projects in the Indian Ocean. Through Mongla Port, China will get a new and strong strategic base in the Bay of Bengal. This is also important for China because 80% of its energy imports pass through the Indian Ocean.
- Danger on transit routes of north-eastern states: India has long depended on Chittagong and Mongla ports to facilitate transportation of goods to its northeastern states (Tripura, Assam, etc.). For this, a new railway line (Mongla-Khulna) was also built. Due to China’s dominance over these ports, there may be future problems in India’s transit rights and logistics supply chain.
Teesta River and other tremors
China has not stopped just at ports. India and Bangladesh share 54 rivers, of which Teesta is the most important. China has now also pledged support to Bangladesh for the Teesta River Management and Restoration Project, which India considers a direct diplomatic intervention. Apart from this, it has also been agreed to rapidly advance the China-Myanmar-Bangladesh Economic Corridor. Now it will be important to see how Bangladesh strikes a balance between its largest border with India and its economic relations with China.
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