China is reportedly pressuring Bangladesh's interim government, led by Nobel laureate Muhammad Yunus, to shift India-funded port projects to Chinese control.

Key among these is the Mongla Port upgradation, Bangladesh's second-largest port, currently financed by India's EXIM Bank and managed by Egis India Consulting Engineers under a ₹6,014 crore Line of Credit. Since the interim government assumed office in August 2024, project progress has stalled, with payments withheld and cross-border official travel restricted. Officials suggest these actions reflect Chinese influence aimed at sidelining India. Additionally, China is eyeing development of Payra Port, another key facility in which India has shown strategic interest. Reports indicate China has offered a $400 million concessional loan to Bangladesh for Mongla Port’s upgradation. These developments pose a significant geopolitical challenge to India’s connectivity and trade ambitions in the Bay of Bengal, where both regional influence and infrastructure development are increasingly becoming areas of strategic competition.