Overview

• India imposed significant import restrictions on Bangladeshi goods, including ready-made garments, on May 17, 2025, in response to Dhaka's growing alignment with China.
• Bangladesh has limited Indian yarn exports to seaports, intensifying a trade dispute that has disrupted long-standing economic ties between the two neighbors.
• Dhaka is negotiating with China to procure 16 advanced J-10C fighter jets, further solidifying its reliance on Chinese military hardware, which already accounts for 80% of its defense equipment.
• Reports of a Chinese delegation inspecting the under-construction Lalmonirhat airbase near India's Siliguri Corridor have raised security concerns in New Delhi.
• Interim Chief Adviser Muhammad Yunus secured $2.1 billion in Chinese loans and investments during a March 2025 visit to Beijing, deepening Bangladesh's integration into China's Belt and Road Initiative.