Balance China’s BRI gains with social, labour and environmental safeguards: Experts
China has cemented its position as Bangladesh's largest infrastructure partner through its Belt and Road Initiative (BRI). While these investments are crucial for development, experts highlighted serious social, environmental, and governance risks. They point to limited transparency in China-funded projects, gaps in environmental and labour safeguards, and inadequate engagement with affected communities.
At a roundtable titled "Belt and Road Initiative (BRI) in Bangladesh: Problems, potentials and way forward" held at The Business Standard meeting room in Dhaka on 20 November 2025, 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.
The event was jointly organised by The Business Standard, Coastal Livelihood and Environmental Action Network (CLEAN), Bangladesh Working Group on Ecology and Development (BWGED), Regional Infrastructure Monitoring Alliance (RIMA), 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.
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Hasan Mehedi
Chief Executive, CLEAN
The economic and infrastructure history between Bangladesh and China is long, and while major Chinese financing – over $17 billion for projects like the Padma Bridge and Karnaphuli Tunnel – has developed our infrastructure, a key issue remains. At the same time, financing in Banshkhali or Payra Power Plant is harming the environment and society.
Most funding comes as commercial loans, not FDI, limiting permanent job creation. Only Chinese companies are getting contracts, dwarfing Bangladeshi companies. Nearly 90% of Chinese energy investment is focused on fossil fuels, contradicting global green pledges, and there is no loan support for renewables.
I recommend that China shift to direct investment, enforce contractor accountability, halt financing for fossil fuels, and fully disclose EIA reports and budgets to reduce social and geopolitical risks.
Kazi Maruful Islam
Convener, BWGED
I appreciate the insights shared, recognising the BRI's importance for Bangladesh's development, but sustainability must be mandatory, not optional.
While the relationship is currently G2G and B2B, long-term success requires strong people-to-people ties and active engagement from civil society.
The Bangladesh government bears primary responsibility for bridging policy gaps and ensuring that all companies comply with human, labour, and environmental standards.
Ultimately, citizens must demand transparency, democratic governance, and the hearing of community voices to enable responsible, beneficial investment.
Rayyan Hassan
Executive Director, NGO Forum on ADB
I commend the AIIB for establishing multilateral standards, including safeguards and accountability mechanisms. However, the World Bank and ADB remain more dependable partners for Bangladesh due to their long-term presence and flexibility during crises.
The Sri Lankan debt crisis demonstrated the rigidity of Chinese financial institutions in loan restructuring, unlike the quick response from ADB and the World Bank. China, as a deep, long-term investor in Bangladesh, must adopt a more open and inclusive approach.
China lacks a clear policy for outbound environmental and social compliance by its project developers. I urge greater transparency and the establishment of local grievance redress mechanisms to address community impacts.
Monower Mostafa
Networking Adviser, CLEAN
While I acknowledge China's significant investment in Bangladesh's power and energy sector and its gradual post-COP26 shift toward renewable energy, progress remains slow.
I want to highlight three critical issues: transparency of loans and projects is poor, making advocacy difficult; Chinese authorities are often unresponsive to civil society communications; and projects must respect human and labour rights, as gross violations like Banshkhali are unacceptable. Chinese financiers must take these three major concerns seriously.
Han Kun
President Chinese Enterprises Association in Bangladesh (CEAB)
I want to clarify that the perception of Chinese companies using an environmental 'double standard' is a misconception. China is on a learning curve; while green development was not initially a focus when BRI started in 2013, it has steadily become a core topic.
We seek a balance between implementing higher standards and ensuring that projects move forward, respecting local rules rather than imposing unachievable standards overnight.
On financing, our commercial rates are competitive, and loans offer speed. Regarding the trade imbalance, I urge the government to consider a Free Trade Agreement (FTA).
This would allow Chinese manufacturers to relocate here and export, fostering a manufacturing hub, increasing jobs, and leveraging economic growth, outweighing the perceived risk of trade imbalance.
Wasiur Rahman Tanmoy
Capacity Development Coordinator, Manusher Jonno Foundation
I must highlight the social and governance issues associated with BRI investments. A key concern is the severe trade imbalance with China – Bangladesh imported $16.64 billion but exported only $715.4 million in FY24 – so we must diversify our product mix to take advantage of China's 98% duty-free access. Governance of sole-source procurement raises cost and sustainability concerns.
Large projects displace marginalised communities with inadequate compensation, while disparities in labour rights and safety between Chinese and local workers fuel social unrest at project sites.
Tahrim Chowdhury Ariba
Climate and Health Lead, Global Strategic Communications Council (GSCC)
While I appreciate China's strategic partnership, I believe that for the BRI to be mutually beneficial and sustainable, we need a broader understanding of the required investments. As the 7th most climate-vulnerable country, Bangladesh requires stronger financial support for renewable energy.
Current infrastructure projects are imposing a significant health burden on vulnerable populations through pollution, resulting in out-of-pocket medical costs.
Furthermore, the financial burden of loan repayment diverts national funds from urgent health system strengthening. We must ensure investments align with our sustainable development and health security goals.
Munir Uddin Shamim
Senior Manager, Ethical Trading Initiative (ETI Bangladesh)
As a representative of the Ethical Trading Initiative (ETI), which brings together business, trade unions, and NGOs, I urge a holistic approach to addressing BRI-related risks to workers' rights and the environment.
I believe all investments must comply with the UN Guiding Principles on Business and Human Rights and global commitments such as the SDGs and Decent Work. In Bangladesh, the RMG sector needs Chinese investment in renewable energy to meet the EU Green Deal, and the leather sector can benefit from joint ventures using Chinese technology. All investments should be competitively bid, build local capacity, and respect freedom of association.
Sekander Ali Mina Sumon
Executive Director, Safety and Rights Society (SRS)
While I acknowledge the huge BRI opportunities for job creation and enhanced economic competitiveness, especially within Special Economic Zones, I must address the severely neglected area of labour rights.
The challenges workers face include very weak labour standards and extremely limited access to effective grievance mechanisms. Crucially, the fundamental rights to freedom of association and form trade unions are virtually absent or discouraged.
The government must introduce concrete guidelines to enforce labour laws for foreign investment.
Gouranga Nandy
Chairperson, Centre for Environment and Participatory Research (CEPR)
Based on my observation, I believe China is playing a double-standard role. While setting a national goal of carbon neutrality by 2060, China simultaneously invests heavily in the global fossil fuel sector.
Furthermore, in the name of clean energy, China is building the world's largest dam on the upper part of the Brahmaputra (Yarlung Tsangpo), raising severe environmental concerns for us in the lower basin.
I also flag the geopolitical issue of China planning a mega-port in the Bay of Bengal, very close to Chittagong. These investments appear aimed at achieving control under the BRI umbrella. I urge civil society and governments to clearly state their positions on these wider regional issues, not just the local projects.
Tauhedul Islam Shahazada
Executive Director, Prantojon
From Prantojon, we are monitoring the environmental and livelihood impacts of China's mega-structures in the coastal belt area. The BRI partnership promises $26 billion; in addition to transport and energy, investment in green energy would have made achieving our 40% renewable energy target by 2040 easier.
BRI offers benefits like job creation and regional export growth. However, high-interest Chinese loans and non-transparent contracts are major obstacles.
About 59% of BRI projects carry environmental and governance risks. Due to the Payra port and power plant, the Hilsa sanctuary in the Andharmanik River is suffering; fishermen now catch very little Hilsa.
Displacement, inadequate compensation, and the authorities' unresponsive behaviour create mistrust. We must ensure a profitable balance by prioritising national interest, compensating for environmental damage, and ensuring transparency.
Rebeka Sultana
Executive Director, Onnochitra Foundation
I want to address the construction of the Kewatkhali Steel Arch Bridge. The primary issue is the utter lack of on-site information and transparency. The project's information board is vague, and getting clear details from the Roads and Highways office is difficult.
Critically, the land acquisition process has caused significant public suffering. The piling of construction materials and river dredging activities are severely impacting nearby human settlements. There is currently no clear authority to address these complaints and improper land-acquisition processes, hindering the project's purpose.
Abrar Ahammed Bhuiyan
Programme Associate, Centre for Policy Dialogue (CPD)
I believe that while Chinese investors are keen to expand their businesses, particularly in wind energy, the Bangladeshi government is currently not ready to facilitate this growth.
For instance, the Sustainable and Renewable Energy Development Authority (SREDA) lacks concrete policies or guidelines for wind energy, creating operational barriers, particularly in anti-corruption, land acquisition, and monitoring.
China is our largest infrastructure partner. The core challenge is Bangladesh's need to improve domestic governance to meet investor interests.
Mohammad Mamun Mia
Executive Director, ReGlobal
As a youth activist, I believe the massive BRI debt burden could severely constrain future government investment in youth development, particularly for training and rural female youth.
Many projects rely heavily on Chinese labour and lack robust technology-transfer clauses, limiting skill development for our young generation. This is worsened by a top-down, non-transparent approach that excludes Bangladesh's 60 million young people from key decisions.
I recommend creating a BRI and Youth Skill Academy, integrating youth development plans, and linking local SMEs to ensure equitable and sustainable benefits for Bangladeshi youth.
Ashraful Islam Raana
Energy and climate activist and journalist
I would like to discuss the philosophical competition between China and the US. While the global BRI vision aims for continental connectivity, regional geopolitical tensions have stalled major themes, such as the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor.
Unfortunately, China's investments here are not the philosophical opposite of American fossil fuel investments; it is also heavily promoting fossil fuel projects, which creates huge financial risks.
Despite China being a major global renewable energy investor, the lack of a clear, unified renewable energy policy and the local political focus on fossil fuels mean this important partner is disproportionately moving towards environmentally harmful and financially risky fossil fuel ventures.
