Calls grow for balancing BRI benefits with social, environmental, labour risks

China has become Bangladesh's largest trading partner and one of its most significant development financiers, particularly through the Belt and Road Initiative (BRI).

Chinese loans have supported major infrastructure projects such as the Padma Rail Link, Karnaphuli Tunnel, and several coal and thermal power plants, including Payra and Banshkhali – investments that have strengthened connectivity, boosted industrialisation, and created jobs. China is also positioned to assist Bangladesh's transition to renewable energy and wider regional integration.

However, civil society representatives, academics and researchers caution that these opportunities come with governance, environmental, and social risks.

They point to limited transparency in China-funded projects, gaps in environmental and labour safeguards, and inadequate engagement with affected communities. They urged policymakers to prioritise accountability, disclose project information, strengthen rights protections, and phase out fossil-fuel dependence in favour of a genuinely "green BRI".

These views were shared at a discussion titled "Belt and Road Initiative (BRI) in Bangladesh: Problems, potentials and way forward" held today (20 November) at The Business Standard office in Dhaka.

The event was jointly organised by TBS, CLEAN, BWGED, RIMA 2025, and the NGO Forum on ADB. Hasan Mehedi, chief executive of CLEAN, presented the keynote, and the session was moderated by Sajjadur Rahman, deputy editor of TBS.

Economic potential and strategic shifts

Dr Kazi Maruful Islam, convener of BWGED, noted that the BRI, launched in 2013, has grown from an infrastructure initiative into a broad strategic partnership among participating nations.

He said the BRI offers significant economic prospects but also raises concerns about sustainability and local impacts. With the partnership shifting from government-to-government to more business-to-business engagement, he stressed the importance of people-to-people connectivity. Civil society, he argued, can strengthen accountability and ensure projects serve community needs rather than merely financial interests.

Investment trends, concerns

Presenting the keynote paper, Hasan Mehedi said Chinese-funded megaprojects include the Padma Rail Link ($3.3b), Karnaphuli Tunnel ($1.2b), Payra ($1.9b), Banshkhali and Patuakhali coal plants ($1.8b each), and the Matarbari oil storage facility ($1b).

While total financing approaches $17b, actual FDI is only $1.4b, with most Chinese capital tied to power and construction rather than high-potential sectors like ICT, advanced manufacturing, or green technology.

China's energy investments in Bangladesh total 5,610MW, of which 4,171MW come from coal. He noted that although China leads globally in renewable investments, it has not extended renewable-energy loans to Bangladesh; only $197m in equity has gone to solar and wind.

Major concerns include limited public disclosure, mandatory procurement from Chinese contractors, non-transparent environmental assessments, and repeated labour conflicts at sites such as Banshkhali and Payra.

Mehedi recommended that China increase genuine FDI, strengthen contractor accountability, align with green development goals, close loopholes in fossil-fuel financing, and support locally rooted adaptation and renewable projects.

Need for transparency, rights protection

BWGED's Monower Mostafa outlined three priority concerns. First, he called for public disclosure of Chinese loans, deposits, and financial flows to enable scrutiny. Second, he stressed the need for more meaningful engagement with local communities and civil society.

Third, he emphasised the importance of safeguarding labour and human rights, noting past incidents that underline the need for stronger oversight.

Perspective from Chinese businesses

Han Kun, president of Chinese Enterprises in Bangladesh, said the BRI is a partnership framework that combines government financing, private investment, and joint ventures. Past fossil-fuel projects, he argued, reflected the technological context of the time, while future investments will depend on Bangladesh's policy support for renewables.

He said Chinese loans – often at 2-3% – remain competitive and that infrastructure investment reflects China's long-term commitment to Bangladesh's growth. Trade agreements such as an FTA could facilitate industrial relocation, create jobs, and expand Bangladesh's export capacity.

Han acknowledged concerns regarding labour rights and transparency but stressed that responsibility is shared among investors, governments, and civil society. He noted that many Chinese firms now publish ESG and CSR reports and urged similar disclosure requirements for joint ventures to improve governance.

Labour rights and social standards

Sekender Ali Mina, executive director of Safety and Rights Society, said Chinese investments generate employment across construction, manufacturing, and services and bring skill-building opportunities.

Yet gaps persist in labour standards, workplace safety, grievance mechanisms, and union rights. He called for stronger inspections, worker participation, and accountability to ensure that economic growth does not come at the expense of social equity.

Governance gaps in Bangladesh

CPD's Abrar Ahammed Bhuiyan noted that many of the risks identified in BRI projects are rooted in Bangladesh's own governance weaknesses – environmental oversight, anti-corruption systems, land acquisition processes – which affect investors from all countries. He said project delays, disputes, and irregularities are not unique to Chinese investments.

Trade imbalance and procurement issues

Wasiur Rahman Tonmoy of MJF highlighted the widening trade gap: Bangladesh imported $16.64b from China in FY24 but exported only $715m.

He said Bangladesh has struggled to utilise China's duty-free access due to weak product diversification. He also warned that single-source procurement in some Chinese-funded projects raises concerns about cost, quality, and long-term technological dependence.

Environmental and financial burdens

GSCC's Tahrim Choudhury Ariba said large infrastructure loans strain Bangladesh's fiscal capacity, diverting resources from critical sectors like healthcare. The country must consider whether long-term repayment obligations outweigh project benefits.

Long-term partnership and safeguards

Rayyan Hassan of the NGO Forum on ADB stressed that China's engagement in Bangladesh is long-term and requires flexible, inclusive structures. He added that China lacks clear outbound environmental and social standards, creating uncertainties about how Chinese developers should operate abroad.