China Starts Construction of $167 Billion Dam on Yarlung Tsangpo - Bloom Pakistan

China Starts Construction of $167 Billion Dam on Yarlung Tsangpo

Islamabad, July 21, 2025: Chinese Premier Li Qiang on Saturday officially announced the launch of a massive hydropower project on the lower reaches of the Yarlung Tsangpo River in Tibet. According to China’s state-run Xinhua News Agency, construction has now begun on what is expected to be one of the largest hydropower projects in Chinese history, with a total estimated cost of 1.2 trillion yuan.

The Yarlung Tsangpo, which flows from the Tibetan Plateau into India as the Brahmaputra River, plays a critical role in regional water systems. This new project is not just about power generation—it carries deep strategic significance. With water becoming a central element of regional geopolitics, the dam’s construction has stirred fresh concerns in South Asia, especially in India and Pakistan.

China’s decision to proceed with the project comes at a time when water tensions are already high in the region. The Indian government under Prime Minister Narendra Modi has been repeatedly accused of attempting to weaponize water resources flowing into Pakistan by altering or restricting flow in the Upper Indus Basin. In this context, the Chinese hydropower project is being seen by many analysts as a counterweight to India’s increasing control over shared rivers.

The construction site lies at a critical geographic point—just before the Yarlung Tsangpo curves into India’s northeastern region. This gives Beijing significant strategic advantage over downstream water flow, raising environmental and geopolitical alarms in New Delhi.

While Chinese authorities describe the project as a step toward clean energy and economic development, experts in the region believe its implications go far beyond electricity. The massive structure could allow China to influence water levels in the Brahmaputra during periods of flood or drought, indirectly affecting agriculture, fisheries, and human settlements in India and Bangladesh.

Pakistan, which relies heavily on the Indus River system, has shown cautious support for the Chinese move. Pakistani analysts argue that the project could restore some balance in the region’s hydrological politics.

“Modi’s weaponization of water has endangered the whole Upper Indus Basin,” said one Islamabad-based strategic affairs expert. “This development gives China a stronger say in the region’s water dynamics, which may help neutralize India’s aggressive water policy.”

Environmentalists, however, warn of irreversible ecological consequences. The Yarlung Tsangpo River flows through a biologically rich and fragile zone. Large-scale construction could disrupt biodiversity, water tables, and sediment flow, creating long-term impacts for millions living downstream.

India has not yet issued an official response, but diplomatic sources suggest that the issue will be raised in upcoming bilateral and multilateral forums. Regional observers believe that water disputes in South Asia are entering a new and more complex phase, one in which river control could shape future alliances and conflicts.

The construction of the Yarlung Tsangpo dam signals more than just infrastructure development—it represents a shift in regional power dynamics. With three nuclear-armed neighbors relying on interconnected river systems, the path forward demands careful diplomacy, cooperation, and sustainable water-sharing mechanisms.