China has begun construction on what will be the world’s largest hydropower dam on the Yarlung Tsangpo (Brahmaputra) River in Tibet, a $167 billion project aimed at boosting clean energy, economic growth, and green finance.
While Beijing touts the dam as a sovereign initiative to fight climate change and stimulate its slowing economy, the project has alarmed downstream neighbors India and Bangladesh, who fear potential impacts on water flow, agriculture, and local communities. Environmentalists and human rights advocates have also raised concerns about biodiversity loss, forced relocations, and the lack of transparent consultation or compensation. Despite reassurances from China that the dam will not harm downstream countries, the move has heightened regional tensions and complicated diplomatic relations.
The project is also expected to drive up demand for construction materials and boost related stocks in China.
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