China has given the green light to the construction of the world’s largest hydropower dam on the lower reaches of the Yarlung Zangbo River, also known as the Brahmaputra in Tibet, near the Indian border. The $137 billion project, considered the largest infrastructure initiative globally, has sparked concerns in neighboring India and Bangladesh. The dam will be located in a vast gorge where the river turns towards Arunachal Pradesh before flowing into Bangladesh.

The dam is expected to generate over 300 billion kWh of electricity annually which will be enough to power 300 million people and will leave behind China's Three Gorges Dam, the current largest dam in the world. Part of China’s 14th Five-Year Plan (2021–2025) and long-term goals through 2035, the project aims to tap into the immense hydropower potential of the Yarlung Zangbo River, which includes a 2,000-meter vertical drop throughout 50 kilometers.

In 2020, Yan Zhiyong, former chairman of the Power Construction Corporation of China said, "The lower reaches of the river contain nearly 70 million kilowatts of resources, more than three times the capacity of the Three Gorges Dam. However, India has shown concerns over the dam's potential to control water flow and the risk of flooding during times of conflict.

The dam’s location on a tectonic plate boundary raises concerns about seismic risks. However, Chinese authorities have marked the safety measures in place. "Through extensive geological explorations and technical advancements, a solid foundation has been laid for the science-based, secure, and high-quality development of the project," an official statement read.

China’s official media have referred to this project as a green initiative, aiming to contribute to carbon neutrality and climate change mitigation. It is designed to create a clean energy base by integrating hydro, wind, and solar power, while also driving economic growth in Tibet.

Yan also stated, "It is a project for national security, including water resources and domestic security, and is expected to generate 20 billion yuan ($3 billion) annually for the Tibet Autonomous Region."
India and China have an Expert Level Mechanism (ELM) for discussions on trans-border rivers, and during recent talks, both nations addressed the issue of data sharing. However, the scale and strategic implications of this project continue to raise concerns about regional cooperation and its potential ecological impacts.