Geo-strategy, a subfield of geopolitics, is a type of foreign policy guided principally by geographical factors as they inform, constrain, or affect political and military planning. The Bay of Bengal is very rich in natural resources. The Bay is very substantial for China and India, for the imports of oil from the Middle East and African countries. The geopolitics of the increasingly volatile South China Sea could possibly impact on India"s interests and relations with Southeast Asian countries. This paper examines whether China and India"s Indian Ocean strategies underpin greater cooperation, rather than competition to generate synergies in the region. The main objective of this study is to focus on the geo-strategic and geo-economic importance of the Bay of Bengal and Indian Ocean where China has huge interest. Moreover, the study has found that the Bay of Bengal, and South East Bangladesh, is very important for China, for trade and investments and exports and imports purposes. This study has been carried out on the basis of focus group discussions, observation, and secondary data.