China has begun construction on what is set to become the world's largest hydropower dam on the Yarlung Tsangpo River in Tibet, a $167 billion project that could surpass the Three Gorges Dam in scale and output.
The dam's location on a river that flows into India and Bangladesh has triggered serious concerns about water security, environmental impact, and regional stability, with Indian and Bangladeshi officials warning of potential downstream effects on millions of people. Chinese authorities claim the project will boost renewable energy and economic growth, but critics highlight the lack of transparency, consultation, and potential for irreversible ecological damage in a highly biodiverse area. The move has also led to a surge in construction and metal stocks, reflecting market optimism despite diplomatic unease.
As construction proceeds, the dam is becoming a flashpoint in broader geopolitical and environmental debates across South Asia.
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