Kathmandu: South Asia’s geopolitical, economic, and social relevance is on the rise, with China actively positioning itself as a strategic partner in the region. The ongoing strategic shifts in South Asia, especially in the context of the United States’ “rebalance to Asia” policy, have heightened the region’s importance.
According to National News Agency Nepal, nearly two billion people reside in South Asia, and countries like India are emerging as global economic powerhouses alongside China. Both India and Pakistan are among the few nuclear-armed states worldwide. The geographical locations of South Asian countries along the Indian Ocean and the Arabian Sea further enhance 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, with bilateral trade between China and India 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.
China’s presence is expanding through various projects, such as 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.
Pakistan serves as a prominent example of China’s policy in South Asia, with the China-Pakistan Economic Corridor (CPEC) valued at over $62 billion. The corridor connects Gwadar Port in Pakistan to China’s western Xinjiang region, forming the backbone of China’s regional investment strategy. Economic ties between China and Pakistan are bolstered by the China-Pakistan Free Trade Agreement (CPFTA), while security cooperation includes joint military exercises.
Bangladesh and China share a strong diplomatic relationship, which has been elevated to a strategic cooperative partnership. Defense cooperation is robust, with China assisting Bangladesh in enhancing its naval capabilities. Since joining the BRI in 2016, China has invested billions in various energy and infrastructure projects in Bangladesh.
China was among the first countries to recognize Sri Lanka’s sovereignty. The China-Sri Lanka relationship has evolved into a comprehensive strategic partnership supported by large-scale infrastructure projects and strategic investments. Notable projects include the Hambantota Port and Colombo Port City development.
Nepal and China share a long-standing relationship, with China emerging as a major development partner under the BRI. Chinese investments focus on enhancing Nepal’s connectivity, energy capacity, and industrial growth. China is Nepal’s largest source of foreign direct investment (FDI), directing funds primarily toward the tourism and service sectors.
The Maldives and China have established solid political and diplomatic ties, with China investing in several development projects. China’s expanding links with South Asia are reshaping the region’s power dynamics. South Asian nations must ensure cooperation remains transparent, balanced, and sustainable to maximize benefits and mitigate risks. China’s growing presence offers opportunities for stability, infrastructure growth, and long-term development, driving both economic and political transformation in the region.