China has embarked on a massive infrastructure undertaking worth US$170 billion (approximately Rp2,772 trillion). The “giant” referred to here is not a creature, but the world’s largest hydroelectric dam, which will be constructed on the eastern edge of the Tibetan Plateau.

According to Reuters on Tuesday (July 22, 2025), Xinhua reported that this project is China’s most ambitious development since the construction of the Three Gorges Dam on the Yangtze River. Domestically, the project is being viewed as an economic stimulus, reflected in rising Chinese stock markets and a shift in bond yield spreads on Monday.

The dam will be situated downstream on the Yarlung Zangbo River, with five cascading hydropower plants expected to generate 300 billion kilowatt-hours of electricity annually—equivalent to the entire electricity consumption of the United Kingdom in 2024.

The report notes, “Some sections of the river drop 2,000 meters (6,561 feet) over a stretch of 50 kilometers (31 miles), offering enormous hydroelectric potential.”

Operations are expected to begin sometime in the 2030s.

Chinese Premier Li Qiang has called the dam the “project of the century.” He underscored that the construction must prioritize ecological conservation to prevent environmental degradation.

The project is being overseen by China Yajiang Group, a newly established state-owned enterprise. It is anticipated to boost economic growth, especially as other indicators suggest signs of economic slowdown in China.

Citi stated in a briefing, “Assuming a 10-year construction period, the increase in investment-to-GDP could reach 120 billion yuan (about Rp272 trillion) annually.”

“The actual economic benefits could exceed that estimate,” the note added.

As of now, there is no official projection of how many jobs will be created. For context, the Three Gorges Dam project, which took nearly two decades to complete, generated almost one million jobs in China.

Meanwhile, India and Bangladesh have expressed concerns about the potential impact on millions of people living downstream. The Yarlung Zangbo River flows into both countries, where it is known as the Brahmaputra River.

Pema Khandu, Chief Minister of India’s Arunachal Pradesh state, remarked that the dam is located only 50 kilometers from the Indian border. He warned that the project could dry up to 80% of the river flow through the state and might also trigger flooding in lower Arunachal and neighboring Assam.

Environmental groups have also warned of the risks to one of the most ecologically rich and diverse regions on the plateau. They claim the dam could cause irreversible damage to the Tibetan Plateau’s ecosystem.