China has begun construction on what it claims will be 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 is positioned on a river that flows into India and Bangladesh, raising serious concerns about water security, environmental impact, and the potential for geopolitical tensions in the region. While China touts the project as a green energy milestone and a boost for its economy, critics warn of irreversible ecological damage, forced relocations, and the risk of water being diverted from downstream nations. The move has triggered a surge in hydropower and materials stocks, but also heightened anxieties in India and Bangladesh over future access to vital water resources. Despite reassurances from Chinese officials, the project remains highly controversial and is seen as a major test of regional cooperation and trust.
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