Kathmandu, July 29: South Asia’s importance is growing daily in the current global geopolitical, economic, and social context. As the closest neighbor to the region, China is positioning itself as a strategic partner and will not lag behind in asserting its influence.
The ongoing strategic shifts in South Asia—particularly in the context of the United States’ “rebalance to Asia” policy—have heightened the region’s geopolitical significance. According to the UNFPA Population Report, nearly two billion people live in South Asia. Moreover, India, the largest country in the region, is emerging as a global economic powerhouse alongside China. Both India and Pakistan, key South Asian nations, are among the few nuclear-armed states in the world. The geographic location of South Asian countries along the shores of the Indian Ocean and the Arabian Sea further enhances the region’s strategic value.
Over the past two decades, China has intensified its engagement in South Asia to advance its geopolitical, economic, and strategic interests. Beijing views the region as critical for regional stability and access to global trade routes. China has a substantial economic stake in South Asia, particularly in trade. For instance, according to The Hindu, one of India’s largest newspapers, bilateral trade between China and India was around $10 billion in 2005 and has since surged to over $75 billion. It is projected to exceed $127 billion by 2025.
Through the Belt and Road Initiative (BRI), China is building strategic partnerships and investing heavily in infrastructure across South Asia to secure energy corridors, deepen economic integration, and enhance its regional influence—historically dominated by India. With vast financial resources, assertive infrastructure diplomacy, and growing technological capabilities, China has significantly reshaped the regional geopolitical landscape.
China’s presence is expanding through various projects—ports in Sri Lanka, electricity grids in Bangladesh, road networks in Pakistan, and digital infrastructure in Nepal. These developments raise critical questions about long-term sovereignty, regional alignment, and debt sustainability.
China’s engagement with South Asia rests on three interrelated pillars—economic and infrastructure investment, technology diplomacy and soft power, and political and strategic diplomacy. These efforts aim to secure trade routes, open new markets, and consolidate China’s influence in a rapidly evolving regional order.
Pakistan serves as the most prominent example of China’s South Asia policy. The two countries have consistently supported each other in regional and international forums, maintaining a close and strategic partnership. Central to this alliance is the China-Pakistan Economic Corridor (CPEC)—a project valued at over $62 billion, according to the CPEC quarterly report—which connects Gwadar Port in Pakistan to China’s western Xinjiang region. The corridor includes critical infrastructure such as power plants, highways, and railways, forming the backbone of China’s regional investment strategy. Likewise, economic ties between the two nations have been further bolstered by the China-Pakistan Free Trade Agreement (CPFTA), which has deepened trade cooperation. On the security front, China and Pakistan frequently conduct joint military exercises and collaborate on defense production, notably in the development of the JF-17 fighter jet. Pakistan is also China’s largest arms importer.
The CPEC provides China with direct access to the Arabian Sea, allowing it to bypass the strategic chokepoint of the Strait of Malacca and enhance its energy security. Beyond economic and military cooperation, the partnership extends into people-to-people diplomacy, with both countries promoting tourism, student scholarships, and cultural exchanges to foster deeper mutual understanding.
Bangladesh and China share a strong diplomatic and working relationship, recently elevated to a full-scale strategic cooperative partnership. Regular high-level exchanges have deepened mutual trust, and both countries remain firmly committed to supporting each other on core issues of national interest, such as China’s one-China policy.
Defense cooperation between the two nations is robust, encompassing arms sales, military training, defense production, and joint exercises. Notably, China has assisted Bangladesh with an anti-ship missile launch pad and refurbished submarines, enhancing its naval capabilities. Since Bangladesh joined the Belt and Road Initiative (BRI) in 2016, China has invested billions of dollars in various energy and infrastructure projects. These include power plants, transportation networks, and flagship developments like the Padma Bridge Rail Link. Additionally, under the Digital Silk Road initiative, Chinese tech giants such as Huawei and ZTE are supporting Bangladesh’s ambitions in 5G deployment, cloud computing, and smart governance—significantly advancing the country’s digital transformation.
China was among the first countries to recognize Sri Lanka’s sovereignty, with the landmark 1952 Rubber-Rice Pact laying the foundation for a strong bilateral relationship. Since then, ties between the two nations have evolved into a comprehensive strategic partnership, supported by regular high-level visits, bilateral agreements, and mutual support in international forums. China has consistently backed Sri Lanka on key issues such as sovereignty, post-conflict reconstruction, and national development, making it a central pillar in Sri Lanka’s foreign policy.
In recent years, the China–Sri Lanka relationship has grown both boldly and contentiously. China has emerged as a major development partner through large-scale infrastructure projects, financial aid, and strategic investments. Notable among these is the development of the Hambantota Port with Chinese financing. Additionally, the multibillion-dollar Colombo Port City project—along with four other major infrastructure ventures funded by China—aims to transform Colombo into a regional financial hub.
Sri Lanka’s strategic location in the Indian Ocean makes it a vital node in China’s Maritime Silk Road initiative, enhancing Beijing’s maritime presence and influence in the region. While the deepening partnership has brought economic opportunities, it has also raised concerns about debt sustainability and long-term sovereignty, making Sri Lanka a key case study in China’s evolving South Asia strategy.
Nepal and China share a long-standing relationship rooted in geographical proximity, land border ties, economic cooperation, and diplomatic relations established in 1955. In recent years, China has emerged as a major development partner under the Belt and Road Initiative (BRI), contributing to several key infrastructure projects across Nepal.
Among these projects are the Trans-Himalayan Multi-Dimensional Connectivity Network, feasibility studies for the Kerung–Kathmandu railway, the construction and expansion of roads along northern border routes, hydropower and energy development, industrial parks, and Special Economic Zones. These initiatives aim to enhance Nepal’s connectivity, energy capacity, and industrial growth. China is also Nepal’s largest source of foreign direct investment (FDI). According to People’s Daily Online, Nepal received approximately $88 million in FDI from China in recent years, primarily directed toward the tourism and service sectors.
The Maldives and China have established solid political and diplomatic ties, albeit the Maldives seeks to maintain a balance with both China and India. China invested in the Maldives in several development projects: airports, bridges, tourism, fisheries, the Maldives’s engagement with financial diplomacy, Chinese SOEs, digital Silk Road, soft power, and health diplomacy with China.
The area’s Power dynamics are changing due to China’s expanding links with South Asia. The message is unmistakable: China is here to stay, whether it is a rail line in Kathmandu, a fiber-optic cable in Dhaka, or a port in Colombo. Whether or not this is a tale of shared progress will depend on how South Asian nations react, adjust, and express themselves.
China has significantly enhanced regional connectivity and economic development in South Asia through diplomatic engagement, strategic partnerships, and Belt and Road Initiative (BRI) projects. Its investments in digital infrastructure and physical connectivity have benefited countries such as Bangladesh, Nepal, Sri Lanka, and Pakistan. However, concerns remain over dependency, debt sustainability, and regional geopolitical tensions. To maximize the benefits and mitigate the risks of Chinese involvement, South Asian nations must ensure that cooperation remains transparent, balanced, and sustainable. China’s growing presence is reshaping the region, offering opportunities for stability, infrastructure growth, and long-term development. As a result, many analysts view China’s engagement in South Asia as a critical driver of both economic and political transformation. (The author is an Associate Professor, School of International Studies, Sichuan University, Sichuan, China)
(Disclaimer: The views expressed herewith are solely those of the author, and do not necessary represent the views of the agency.)
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