China has become one of Bangladesh’s largest foreign investors and the country’s leading private-sector creditors, reflecting a significant shift in bilateral economic relations over the past decade.
According to Bangladesh Bank data, China’s foreign direct investment (FDI) stock increased from $241 million in 2016 to nearly $2 billion by the end of 2025, raising its share of Bangladesh’s total FDI stock to almost 10%. During the same period, the United States’ share declined, while India’s investment grew at a slower pace.
Chinese financing has supported several major infrastructure projects, including the Padma Bridge Rail Link, Karnaphuli Tunnel, Chattogram-Cox’s Bazar railway, Payra Thermal Power Plant, Chattogram Elevated Expressway, and Dasherkandi Sewage Treatment Plant.
China has also become Bangladesh’s largest private-sector external creditor, accounting for 34.2% of the country’s long-term private external debt in 2025, with outstanding loans reaching $3.37 billion.
Industry experts attribute the growing Chinese investment to competitive pricing, readily available financing, and strong support for infrastructure and industrial development. The renewed momentum in Bangladesh-China economic cooperation is also expected to encourage further investment in manufacturing, logistics, and export-oriented industries.
