US Counters China's Growing Influence in Bangladesh
Analysis based on 21 articles · First reported Feb 11, 2026 · Last updated Feb 11, 2026
The geopolitical competition between the United States and China for influence in Bangladesh, particularly in defense, creates both opportunities and risks for the region's markets. Increased defense spending and potential shifts in trade alliances could impact defense contractors and other industries, while strained relations between Bangladesh and India could disrupt regional economic stability.
The United States is expressing concern over China's expanding influence in South Asia, specifically in Bangladesh, and is offering its defense systems as an alternative to Chinese hardware. This comes as Bangladesh prepares for a general election and its relationship with India has deteriorated following the ousting of former premier Sheikh Hasina. China has recently signed a defense agreement with Bangladesh to build a drone factory and Bangladesh is also in talks with Pakistan to acquire CAC/PAC JF-17 Thunder fighter jets, jointly developed with China. The U.S. Ambassador to Dhaka, Brent T. Christensen, emphasized commercial diplomacy and the importance of a stable relationship between Bangladesh and India. The U.S. also remains the largest contributor to humanitarian aid for Rohingya refugees in Bangladesh.
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