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 raised serious concerns about water security, environmental impact, and the potential for geopolitical tensions in South Asia. While China touts the project as a major step toward renewable energy and green finance, critics highlight the lack of transparency, consultation with downstream countries, and possible threats to biodiversity and local communities. The move has also triggered a surge in related stocks and is expected to drive demand for construction and metal industries.
Despite reassurances from Chinese officials, India and Bangladesh remain wary of the project's long-term implications for their water resources and regional stability.
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