The United States is signaling concern over expanding Chinese influence in South Asia, with a focus on Bangladesh, and plans to offer the next Bangladeshi government alternatives to Chinese defence hardware, including U.S. and allied systems.

U.S. officials stress the importance of stable Bangladesh–India ties, noting strains since Hasina’s departure that have affected visas and sports exchanges.

Commercial diplomacy is a top priority, promoting an open environment for U.S. and allied investments, while indicating that firms like Chevron face barriers such as high taxes and repatriation limits.

Observers emphasize Bangladesh–India economic and geographic interdependence, spanning trade, energy cooperation, and cross-border infrastructure, meaning any reset would attract intense global scrutiny from major powers.

Diplomats warn that a prolonged downturn in Bangladesh–India relations could disrupt trade, border management, and connectivity initiatives amid regional competition and economic uncertainty.

Dhaka’s approach in the coming months will be pivotal as it navigates competing pressures from the U.S. and China to safeguard its national interests.

Regional geopolitics show a strategic vacuum after the 2024 shift in government, with competing influences from the U.S., China, and India; the U.S. defense proposal aims to integrate Bangladesh into a Western-aligned security framework and stabilize regional ties.

Background context includes Hasina’s refuge in India and the evolving India–Bangladesh relationship, alongside U.S. statements about engagement with the Bangladeshi government.

Washington seeks broader international support to sustain humanitarian aid in the region amid geopolitical competition with China.

A recent reciprocal trade agreement between the U.S. and Bangladesh is described by Bangladesh’s Chief Adviser as a historically new level of bilateral economic ties.