China maintains strong influence in India’s eastern neighbourhood—Bangladesh and Myanmar—regardless of political changes, using long-term economic, defence, and diplomatic ties. After the 2026 elections in both countries, Beijing quickly engaged with the new leadership to ensure continuity of cooperation. China’s investments, infrastructure projects, trade dominance, and arms supplies create structural dependencies that outlast electoral cycles. These relationships expand China’s role in economic development, defence, and security cooperation. As a result, India’s Northeast faces growing strategic pressure from a China-linked regional network involving Bangladesh, Myanmar, and indirectly Pakistan.
In the first two months of 2026, India’s eastern neighbourhood underwent two significant political transitions. In Dhaka, the Bangladesh Nationalist Party led by Tarique Rahman secured a commanding parliamentary majority, winning 212 seats. In Naypyidaw, the military-backed Union Solidarity and Development Party achieved a landslide victory, consolidating the armed forces’ hold over Myanmar’s political system. While the two transitions differ in character, both represent moments of institutional recalibration with significant regional consequences.
New Delhi tends to interpret such shifts primarily through the lens of stability- whether violence in Myanmar will subside, whether Bangladesh’s governance will stabilise under new leadership, and whether bilateral cooperation will endure. Yet this framing underestimates the structural dimension of external influence.
Across India’s eastern periphery, China holds a durable strategic advantage. In Myanmar, this influence aligns comfortably with a military-dominated political order. In Bangladesh, where foreign policy is guided by pragmatic strategic considerations, China’s role as the country’s largest trading partner and a major defence supplier ensures continuity regardless of who governs. While these developments unfold in Dhaka and Naypyitaw, their ripple effects are likely tobe felt across India’s Northeast - a region geographically bracketed by Bangladesh and Myanmar and increasingly exposed to the cumulative expansion of Chinese economic and security leverage on both flanks. For India, the challenge therefore extends beyond changes in political leadership in neighbouring states to the broader question of whether Beijing’s influence in the region is becoming structurally entrenched across political transitions.
China’s Post-Election Engagement
China’s response to the 2026 political transitions in Myanmar and Bangladesh was neither cautious nor reactive. Rather, it reflected a consistent diplomatic pattern of rapid engagement designed to anchor continuity before political uncertainty can translate into policy drift. In Myanmar, Beijing moved quickly to legitimise the post-election political environment without engaging in debates over the credibility of the electoral process. Official messaging from China followed a familiar narrative of congratulations on the electoral process, coupled with emphasis on “peace, stability and cooperation,” while avoiding commentary on questions of fairness or domestic legitimacy. Soon after the polls, China’s ambassador Ma Jia publicly declared that China–Myanmar relations had reached “new heights,” signalling that the election had not altered the trajectory of bilateral ties.
This approach was further reflected in the post-elections interactions. At a Spring Festival gathering in Yangon, Chinese Ambassador Ma Jia and Tatmadaw Deputy Commander-in-Chief Soe Win publicly emphasised the continued expansion of bilateral ties. Ambassador Ma Jia highlighted the strength of economic ties, noting that bilateral trade had grown by 19 percent while Chinese investment had surged by 230 percent over the past year. Soe Win, in turn, expressed expectations that cooperation would deepen further once a new government takes office in April. The exchange underscored a broader pattern in China’s Myanmar diplomacy of prioritising continuity in strategic engagement with the country’s military establishment regardless of electoral developments or debates over the political transition.
A similar pattern unfolded in Bangladesh as well. In March 2026, Chinese Vice Foreign Minister Sun Weidong met Bangladesh’s Ambassador to China, Md. Nazmul Islam, congratulating Dhaka on the election outcome and reaffirming Beijing’s commitment to deepen bilateral cooperation under the “Five Principles of Peaceful Coexistence - a framework that China originally articulated with India in the 1950s and of which India is also a founding proponent.” The meeting signalled China’s readiness to work with the new government and its development agenda while encouraging Bangladesh to assume a larger regional role. Moreover, these diplomatic gestures were reinforced by the economic framework already underway since the March 2025 visit of Muhammad Yunus to Beijing, where China and Bangladesh concluded nine agreements worth approximately $2.1 billion in loans, grants and investment commitments. Beijing also agreed to extend loan repayment schedules, provide duty-free and quota-free market access for Bangladeshi exports after the country’s graduation to developing country status in November 2026, and designate hospital facilities in Kunming for Bangladeshi patients.
Structural Foundations of China’s Regional Influence
By engaging early with both civilian leaders and security establishments, China reassures domestic elites that Chinese-backed projects and defence partnerships will continue uninterrupted. This translates directly into backstage political power, as China’s influence in both Myanmar and Bangladesh is embedded in long-term infrastructure projects, energy corridors, trade asymmetries and defence supply chains that operate on timelines far longer than electoral cycles.
In Myanmar, Chinese investment - estimated at nearly $22 billion - spans energy, mining, logistics and transport infrastructure. At the centre of this engagement lies the China-Myanmar Economic Corridor, linking Yunnan province to the Bay of Bengal. Oil and gas pipelines running from Kyaukphyu to Kunming allow China to partially bypass the Strait of Malacca. The development of the Kyaukphyu Deep-Sea Port further strengthens China’s logistical access to the Indian Ocean. Moreover, Beijing has also resumed discussions on the long-suspended Myitsone Dam, signalling that projects paused during earlier political crises remain on China’s strategic agenda once domestic conditions permit.
Similarly, China’s economic presence in Bangladesh operates through different mechanisms but produces similar structural effects. Bilateral trade between Beijing and Dhaka has approached $18 billion annually, making China Bangladesh’s largest trading partner for the past 15 consecutive years. State-owned enterprises such as China Communications Construction Company have built projects like the Karnaphuli Tunnel near Chattogram, while China Major Bridge Engineering Company played a key role in constructing the Padma Bridge. Chinese-backed financing has also supported projects such as the 1,320-MW Payra coal power plant alongside investments in industrial parks and telecommunications infrastructure involving firms like Huawei. Much of this activity is supported by Chinese policy banks including the Export–Import Bank of China and the China Development Bank, enabling projects to operate on longer strategic time horizons than many Western investment flows that tend to fluctuate with governance or political-risk assessments. As a result, Chinese capital has become a durable structural component of Bangladesh’s development trajectory, sustaining Beijing’s economic influence regardless of political change in Dhaka.
The defence dimension adds another layer of structural dependence on China by both Myanmar and Bangladesh. Over the past decade, roughly 72 percent of Bangladesh’s major arms imports have originated from China, including submarines, frigates, anti-ship missile systems and combat aircraft. These acquisitions create long-term maintenance, training and logistical relationships between Chinese defence suppliers and the Bangladesh Armed Forces. In Myanmar, reliance is even more pronounced. Despite sanctions and international scrutiny, the Tatmadaw continues to depend heavily on Chinese-origin military equipment and logistical support. Such procurement patterns generate enduring institutional linkages that extend well beyond the tenure of any government. Over time, these dependencies translate into strategic leverage, advancing Beijing’s broader geopolitical objective of anchoring its influence within the defence establishments of neighbouring states.
Another sector where China’s engagement with Bangladesh is also expanding is the broader security-sector cooperation. During a February 2026 meeting, Chinese Ambassador Yao Wen encouraged Bangladesh to join the International Alliance Combating Telecom and Cyber Fraud, an initiative led by China’s Ministry of Public Security, while also proposing expanded cooperation in law-enforcement training, cybercrime prevention and telecommunications fraud investigations alongside greater Chinese investment. A parallel dynamic is visible in Myanmar, where Chinese authorities have worked closely with security agencies and border authorities on crackdowns against cross-border telecom fraud networks operating along the China–Myanmar frontier. In both cases, these initiatives signal that Beijing’s regional partnerships are gradually extending beyond infrastructure financing and defence procurement into the domain of internal security and law-enforcement cooperation, embedding China more deeply within the institutional security frameworks of neighbouring states.
China, Pakistan and the Strategic Arc around India’s Northeast
China’s expanding influence in Myanmar and Bangladesh does not operate in isolation. It is reinforced by Beijing’s long-standing strategic partnership with Pakistan, frequently described by both sides as an “all-weather” alliance. In recent years, Islamabad has sought to revive and expand diplomatic engagement with both Dhaka and Naypyidaw, reflecting a broader effort to re-establish its presence along the eastern arc of the Bay of Bengal. While Pakistan lacks China’s financial scale or infrastructure capacity, its diplomatic signalling complements Beijing’s presence by reinforcing a broader strategic narrative that regional alignments in South and Southeast Asia need not revolve around India.
For India, geography makes this evolving alignment particularly sensitive. The country’s northeastern states remain connected to the mainland through the narrow Siliguri Corridor, while the region is bordered by Bangladesh, Myanmar, Bhutan and China. As Beijing deepens defence and economic ties with Bangladesh to the west while advancing infrastructure and energy corridors through Myanmar to the east, India’s Northeast increasingly sits within a tightening strategic arc shaped by Chinese-backed connectivity and partnerships.
The cumulative effect of these developments is not dramatic encirclement in the classical military sense. Rather, it is a gradual process of structural displacement. China’s leverage in both Myanmar and Bangladesh continues to expand irrespective of political transitions. As defence modernisation deepens in both countries, the weight of defence relationships increases - an arena in which Beijing already enjoys a significant advantage. If current trajectories persist, India will increasingly face a neighbourhood in the eastern flank in which China is the primary economic partner, the leading defence supplier, and an important diplomatic backer for both adjoining states. In that scenario, the most significant consequences will not unfold in Bangladesh or Myanmar; but in the strategic landscape surrounding India’s Northeast Region.
Image Source: Prothom Alo
Author
Ophelia Yumlembam
Ophelia Yumlembam is a Research Associate at the Organisation for Research on China and Asia (ORCA). Before joining ORCA, she worked at the Dept. Of Political Science, University of Delhi, and interned at the Council for Strategic and Defence Research in New Delhi. She graduated with an M.A. in Political Science from the DU in 2023. Ophelia focuses on security and strategic-related developments in Myanmar, India's Act East Policy, India-Myanmar relations, and drugs and arms trafficking in India’s North Eastern Region. Her writings have been featured in the Diplomat, South Asian Voices (Stimson Centre), 9dashline, Observer Research Foundation, among other platforms.