Dhaka: In a move that aligns well with India’s security interests in the region, Bangladesh has dealt a massive blow to China’s maritime ambitions in the Bay of Bengal. Thwarting Beijing’s attempts to dominate its seaports, the local authorities have chosen to diversify their foreign partnerships for crucial port modernization projects rather than relying entirely on Chinese investments.
According to a report by the news agency IANS, citing the Bricklane news portal, the Chittagong Port Authority recently signed a 30-year agreement with the Denmark-based Maersk Group. Operating under a public-private partnership (PPP) model, the global terminal operator will design, fund, build, and operate the new Laldia Container Terminal at Chittagong port. This agreement was reportedly finalized in 2025 during the tenure of the interim government, alongside a separate deal with the Japan International Cooperation Agency (JICA) for the development of the Matarbari port.
The decision directly undermines China’s much-debated ‘String of Pearls’ strategy, which aims to expand Beijing’s strategic and military dominance in the Indian Ocean region to encircle India. While China had previously secured a project to expand the cargo capacity of the Mongla port by constructing two modern container jetties, experts note that having a presence only in Mongla is insufficient for Beijing to establish a commanding strategic foothold.
Historically, successive governments in Dhaka have been cautious about handing over complete control of their maritime assets to China. Former Prime Minister Sheikh Hasina had previously acknowledged India’s security concerns by refusing to approve a Chinese-backed deep-sea port project in Sonadia, a location of immense strategic importance.
Currently, Bangladesh is actively promoting broader international involvement in its maritime infrastructure. The Patenga Container Terminal at Chittagong, for instance, is already being operated by the Saudi Arabian company Red Sea Gateway Terminal. Meanwhile, Chinese companies remain largely restricted to supplying port machinery, developing nearby industrial parks, and bidding for minor modernization projects.
Strategic analysts suggest that Dhaka’s approach is quite calculated. The government welcomes Chinese investments to strengthen its export-oriented industrial zones, but it firmly refuses to let Beijing use Bangladeshi seaports to advance its strategic interests at the expense of regional stability.