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US moves to counter China in Bangladesh, plans to pitch defence alternatives

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China recently signed a defence agreement with Bangladesh to build a drone factory near the India border.

DHAKA (Reuters) - The United States is concerned about China's expanding presence in South Asia and is planning to offer Bangladesh’s next government U.S. and allied defence systems as alternatives to Chinese hardware, Washington's ambassador to Dhaka told Reuters.

Bangladesh votes in a general election on Thursday after a Gen Z-led uprising toppled India-allied premier Sheikh Hasina in August 2024. She has since taken refuge in New Delhi, allowing China to deepen its influence in Bangladesh as India’s presence wanes.

China recently signed a defence agreement with Bangladesh to build a drone factory near the India border, worrying foreign diplomats. Bangladesh is also in talks with Pakistan to buy JF-17 Thunder fighter jets, a multi-role combat aircraft jointly developed with China.

"The United States is concerned about growing Chinese influence in South Asia and is committed to working closely with the Bangladeshi government to clearly communicate the risks of certain types of engagement with China," U.S. Ambassador Brent T. Christensen said in an interview on Tuesday.

"The U.S. offers a range of options to help Bangladesh meet its military capability needs, including U.S. systems and those from allied partners, to provide alternatives to Chinese systems," he said without offering further details.

The Chinese foreign ministry did not immediately respond to a request for comment.

Christensen also said that President Donald Trump's administration would "like to see a good relationship between Bangladesh and India to support stability in the region".

New Delhi-Dhaka relations have nosedived since Hasina fled, badly affecting visa services and cricket ties between the two neighbours.

COMMERCIAL DIPLOMACY IS PRIORITY

Christensen said many U.S. businesses were looking at potentially investing in Bangladesh but would want the next government to show early and clear signs that it is "open for business".

"Commercial diplomacy is one of our top priorities, and we look forward to working with the new government to build on progress made with the interim government, particularly in strengthening commercial, economic, and security ties," he said.

Energy producer Chevron (CVX.N), opens new tab has been in Bangladesh for decades but not many other U.S. companies are visible in the densely populated country of 175 million people, as high taxes and difficulties repatriating profits have created some hurdles.

There are no Starbucks or McDonald's outlets in Bangladesh.

The envoy said Washington would work with "whichever government is elected by the Bangladeshi people". The race is between two coalitions led by former allies, the Bangladesh Nationalist Party (BNP) and the Islamist Jamaat‑e‑Islami, with opinion polls suggesting the BNP holds an advantage.

AID FOR ROHINGYA REFUGEES

Regarding the 1.2 million Rohingya refugees sheltered in Bangladesh, the ambassador said the United States remained the largest contributor to humanitarian operations.

"The U.S. remains the largest contributor to the Rohingya refugee response and continues robust health programming in Bangladesh," he said, noting a recent $2 billion worldwide funding framework signed with the United Nations to improve the effectiveness of such assistance, including in Bangladesh.

He urged other international donors to take on a greater share of the burden.

"The U.S. cannot sustain the bulk of the effort alone. International partners need to increase their support for the Rohingya response," he said.

In recent years, the U.N. refugee agency has been struggling to raise sufficient funds to support the Rohingya community, leading to cuts in their rations and the closure of some schools for them.  

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