China has become the largest foreign investor in Bangladesh's power sector, holding more than a third of the sector's total foreign direct investment (FDI), according to KrASIA. As of March, China’s FDI stock in the sector reached $1.18 billion, accounting for 34% of the total $3.46 billion invested.
Last year, China surpassed Singapore, which previously held the top position with a 28.5% share of FDI stock as of March. This shift highlights China's growing influence in Bangladesh's energy infrastructure development, reflecting broader trends in regional investment dynamics.
For Japanese investors and companies following regional energy markets, China’s expanding footprint in Bangladesh underscores competitive shifts in infrastructure financing and opportunities for collaboration or strategic positioning in South Asia’s power sector.