China proposes Yunnan-Myanmar-Bangladesh economic corridor

Beijing plans an economic link from Yunnan via Myanmar to Bangladesh – leaving the door ajar for India to join later.

By Saqlain Rizve 28 July 2026 | 4 min read

China has revived an old South Asian regional connectivity idea, but with a different starting point.

During Bangladeshi Prime Minister Tarique Rahman’s visit to Beijing in June, China proposed an economic corridor linking its southwestern provinces with Myanmar and Bangladesh. While Dhaka says it is still studying the proposal, Beijing has indicated it would remain open to India and other countries, marking its first concrete attempt in years to revive regional connectivity through a smaller framework.

The idea resembles the long-discussed Bangladesh-China-India-Myanmar (BCIM) Economic Corridor, which sought to connect Kunming, Mandalay, Dhaka, and Kolkata through road and rail links to the Bay of Bengal. If realised, it would complement China’s two existing Belt and Road economic corridors in South Asia:

• China–Pakistan Economic Corridor – linking Xinjiang with Pakistan’s Gwadar Port on the Arabian Sea
• China–Myanmar Economic Corridor – connecting Yunnan with Myanmar’s Bay of Bengal coast

The original BCIM corridor never moved far beyond discussions. India was reluctant to place the project under China’s Belt and Road Initiative, which New Delhi opposes. Relations between China and India subsequently deteriorated, particularly after their deadly border confrontation in 2020.

Beijing appears increasingly willing to pursue smaller, more flexible partnerships in South Asia.

Rather than waiting for all four BCIM members to reach a consensus, Beijing now appears to be pursuing a phased approach by first advancing cooperation with Bangladesh and Myanmar while keeping the door open for India’s future participation.

For China, the proposal offers another potential connection between Yunnan province and the Bay of Bengal. For Bangladesh, it could improve access to western China and strengthen links with Southeast Asia while reducing transport costs.

Economic Logic

The economic logic is attractive. China is already Bangladesh’s largest source of imports, supplying goods worth around US$18 billion in 2024–25. Yet Bangladesh exports less than US$1 billion annually to China, highlighting the scale of the trade imbalance.

Rahman urged China to import more Bangladeshi pharmaceuticals, leather, aquatic products, and fruits, while Beijing reaffirmed support for the proposed corridor.

Better connectivity could help Bangladeshi exporters reach Chinese consumers and attract manufacturing investment. Trade with Chinese provinces near Yunnan remains limited but is growing, with exports to Bangladesh rising from US$112 million in 2019 to US$397 million in 2025.