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India has stolen it
[🇧🇩] China is a Time Tested Friend and a Strategic Partner of Bangladesh
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China, Bangladesh elevate ties, broaden cooperation - Global Times
www.globaltimes.cn
China, Bangladesh elevate ties, broaden cooperation
Co-op does not target any third party, benefits peace, development: analyst
By Wang Qi
Published: Jul 10, 2024 10:50 PM
Chinese President Xi Jinping meets with Prime Minister Sheikh Hasina of the People's Republic of Bangladesh at the Great Hall of the People in Beijing on July 10, 2024. Photo: Xinhua
China and Bangladesh on Wednesday elevated their relations to a comprehensive strategic cooperative partnership. Chinese President Xi Jinping and Bangladeshi Prime Minister Sheikh Hasina announced this while meeting in Beijing.
Experts described Hasina's visit to China as a journey of cooperation and friendship. Although some Indian media outlets are seemingly concerned about the visit, experts said the development of China-Bangladesh ties does not target any third party, and will be conducive to overall peace and stability in South Asia.
During Wednesday's meeting, Xi told Hasina that China and Bangladesh are good neighbors who know each other well and have had friendly exchanges for thousands of years. Since the establishment of diplomatic relations, the two countries have always respected and supported each other, treated each other as equals, and cooperated for win-win results, setting an example of friendly exchanges and mutually beneficial cooperation between countries, especially between the "Global South."
China cherishes the profound friendship established by the older generation of leaders of China and Bangladesh, and is willing to take the 50th anniversary of the establishment of diplomatic relations next year as an opportunity to deepen the high-quality joint construction of the Belt and Road Initiative (BRI) and expand the depth and breadth of cooperation in various fields, the Chinese President said.
Xi stressed that China supports Bangladesh in adhering to an independent foreign policy, following a development path that suits its national conditions, safeguarding national sovereignty, independence and territorial integrity, and opposing any external interference.
Hasina said that Bangladesh firmly adheres to the one-China principle, supports China's stance on the Taiwan question, resolutely opposes external forces' interference in China's internal affairs, and firmly supports China in safeguarding its core interests.
Earlier on Wednesday, Chinese Premier Li Qiang also met with Hasina. According to the Bangladesh Sangbad Sangstha (BSS), the country's national news agency, the two countries have signed 21 instruments including two renewed MoUs and announced seven more projects.
Talks between Li and Hasina mainly concerned trade and investment, as well as bilateral relations alongside various regional and international matters, according to BSS. The instruments on cooperation in the economic and banking sector, trade and investment, digital economy, infrastructure development, assistance in disaster management, construction of 6th and 9th Bangladesh-China friendship bridges, export of agricultural products from Bangladesh and people to people connectivity were signed.
Closer economic, trade ties
While in Beijing, Hasina attended the "Bangladesh-China Business, Trade and Investment Summit" on Tuesday and delivered a keynote speech.
Hasina said she "encouraged the Chinese business community to consider key sectors in Bangladesh, such as energy, renewable energy and logistic centers," adding that Bangladesh is also "keen to export more products to China, such as textiles, garments, leather and leather goods and other products," according to CGTN.
At the event, industry giants Huawei and China National Chemical Engineering Group Corporation signed a Memorandum of Cooperation with delegates from Bangladesh.
Qian Feng, director of the research department at the National Strategy Institute at Tsinghua University, said the visit by Hasina is a link between the past and the future for bilateral relations, especially in promoting high-level cooperation in the field of economy and trade.
The development strategies of the two countries will be further synergized, and more economic and trade cooperation projects are expected to be implemented in the future, injecting more substantive connotations into the duo's strategic cooperative relations, Qian said.
In the latest trade data released by China's General Administration of Customs, from January to May, China-Bangladesh bilateral trade amounted to 74.91 billion yuan ($10.30 billion), gaining a positive growth of 0.2 percent year-on-year. China remains Bangladesh's largest trading partner.
Moreover, China has also been one of the largest sources of investment in the South Asian country. As of the end of 2023, China's investment stock in Bangladesh had increased to nearly $1.4 billion, and there were nearly 700 Chinese-funded companies in Bangladesh, creating more than 550,000 jobs, according to the Chinese Embassy in Bangladesh.
Hasina's visit to China will further promote the traditional friendship between the two countries, said Hu Zhiyong, a research fellow with the Institute of International Relations at the Shanghai Academy of Social Sciences.
Through cooperation over the past years, Bangladesh has clearly seen how China's development ideas and experience have played a huge role in promoting the economic and social development of Bangladesh, Hu said.
"Specifically, the economic and technical assistance of Chinese enterprises in Bangladesh's infrastructure construction, China's assistance in training local medical and health professionals in Bangladesh, and the increase in the scale of people-to-people exchanges between the two countries," Hu added.
The pragmatic cooperation between the two countries is an illustration for more South Asian countries to understand China's concept of good-neighborly friendship, the idea of sharing the fruits of development, and the image of China as a responsible major power, Qian said.
Balance and opportunity
Hasina also talked with China's top political advisor Wang Huning on Tuesday. Wang, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said that under the strategic guidance of the two countries' leaders, China and Bangladesh respect and treat each other with equality, setting a good example of friendly coexistence and mutually beneficial cooperation between countries.
But some Indian media outlets viewed Hasina's China visit as "a balancing act to keep the two key players happy," as "she needs India to be in power, and China for economic support." Some Indian media also talked down the cooperation between Beijing and Dhaka.
Hasina's visit to Beijing took place shortly after her visit to New Delhi, which tends to view some other South Asian countries including Bangladesh as its sphere of influence. Hasina made a two-day visit to India from June 21 to 22, during which the two sides signed agreements to expand cooperation in maritime security, the ocean economy, space and telecommunication sectors.
Before Hasina's visit to China, Bangladesh's ruling Awami League general secretary and Road Transport and Bridges Minister Obaidul Quader said on July 6 that "India is a political friend of Bangladesh and China is a development partner," explaining the country's relationship with two major powers.
Some analysts said that with the intensifying geopolitical game, some South Asian countries such as Bangladesh are facing a tough situation: If they want to achieve rapid economic and social development, they need to cooperate with China. However, close economic cooperation with China will inevitably draw political and security pressure from countries such as India and the US.
India always uses various excuses to obstruct and create hype whenever a South Asian leader visits China, but New Delhi should not be overly concerned that other countries' engagement with China will damage their relations with India, Hu said.
The development of bilateral relations between China and Bangladesh promoted by Hasina's visit will be conducive to the overall peace and stability in South Asia, Hu said.
The development of China-Bangladesh relations does not target any third party, said Qian, noting that China always opposes zero-sum game and stands for mutually beneficial cooperation.
Against the backdrop of complex geopolitics, China respects Bangladesh's strategic choice and has no objection to Bangladesh developing friendly and cooperative relations with other countries, Qian said.
For Bangladesh, in the face of pressure from India, the development of China-Bangladesh relations also provides a valuable choice for Dhaka to better safeguard its diplomatic independence and development opportunities, Qian said.
Co-op does not target any third party, benefits peace, development: analyst
By Wang Qi
Published: Jul 10, 2024 10:50 PM
Chinese President Xi Jinping meets with Prime Minister Sheikh Hasina of the People's Republic of Bangladesh at the Great Hall of the People in Beijing on July 10, 2024. Photo: Xinhua
China and Bangladesh on Wednesday elevated their relations to a comprehensive strategic cooperative partnership. Chinese President Xi Jinping and Bangladeshi Prime Minister Sheikh Hasina announced this while meeting in Beijing.
Experts described Hasina's visit to China as a journey of cooperation and friendship. Although some Indian media outlets are seemingly concerned about the visit, experts said the development of China-Bangladesh ties does not target any third party, and will be conducive to overall peace and stability in South Asia.
During Wednesday's meeting, Xi told Hasina that China and Bangladesh are good neighbors who know each other well and have had friendly exchanges for thousands of years. Since the establishment of diplomatic relations, the two countries have always respected and supported each other, treated each other as equals, and cooperated for win-win results, setting an example of friendly exchanges and mutually beneficial cooperation between countries, especially between the "Global South."
China cherishes the profound friendship established by the older generation of leaders of China and Bangladesh, and is willing to take the 50th anniversary of the establishment of diplomatic relations next year as an opportunity to deepen the high-quality joint construction of the Belt and Road Initiative (BRI) and expand the depth and breadth of cooperation in various fields, the Chinese President said.
Xi stressed that China supports Bangladesh in adhering to an independent foreign policy, following a development path that suits its national conditions, safeguarding national sovereignty, independence and territorial integrity, and opposing any external interference.
Hasina said that Bangladesh firmly adheres to the one-China principle, supports China's stance on the Taiwan question, resolutely opposes external forces' interference in China's internal affairs, and firmly supports China in safeguarding its core interests.
Earlier on Wednesday, Chinese Premier Li Qiang also met with Hasina. According to the Bangladesh Sangbad Sangstha (BSS), the country's national news agency, the two countries have signed 21 instruments including two renewed MoUs and announced seven more projects.
Talks between Li and Hasina mainly concerned trade and investment, as well as bilateral relations alongside various regional and international matters, according to BSS. The instruments on cooperation in the economic and banking sector, trade and investment, digital economy, infrastructure development, assistance in disaster management, construction of 6th and 9th Bangladesh-China friendship bridges, export of agricultural products from Bangladesh and people to people connectivity were signed.
Closer economic, trade ties
While in Beijing, Hasina attended the "Bangladesh-China Business, Trade and Investment Summit" on Tuesday and delivered a keynote speech.
Hasina said she "encouraged the Chinese business community to consider key sectors in Bangladesh, such as energy, renewable energy and logistic centers," adding that Bangladesh is also "keen to export more products to China, such as textiles, garments, leather and leather goods and other products," according to CGTN.
At the event, industry giants Huawei and China National Chemical Engineering Group Corporation signed a Memorandum of Cooperation with delegates from Bangladesh.
Qian Feng, director of the research department at the National Strategy Institute at Tsinghua University, said the visit by Hasina is a link between the past and the future for bilateral relations, especially in promoting high-level cooperation in the field of economy and trade.
The development strategies of the two countries will be further synergized, and more economic and trade cooperation projects are expected to be implemented in the future, injecting more substantive connotations into the duo's strategic cooperative relations, Qian said.
In the latest trade data released by China's General Administration of Customs, from January to May, China-Bangladesh bilateral trade amounted to 74.91 billion yuan ($10.30 billion), gaining a positive growth of 0.2 percent year-on-year. China remains Bangladesh's largest trading partner.
Moreover, China has also been one of the largest sources of investment in the South Asian country. As of the end of 2023, China's investment stock in Bangladesh had increased to nearly $1.4 billion, and there were nearly 700 Chinese-funded companies in Bangladesh, creating more than 550,000 jobs, according to the Chinese Embassy in Bangladesh.
Hasina's visit to China will further promote the traditional friendship between the two countries, said Hu Zhiyong, a research fellow with the Institute of International Relations at the Shanghai Academy of Social Sciences.
Through cooperation over the past years, Bangladesh has clearly seen how China's development ideas and experience have played a huge role in promoting the economic and social development of Bangladesh, Hu said.
"Specifically, the economic and technical assistance of Chinese enterprises in Bangladesh's infrastructure construction, China's assistance in training local medical and health professionals in Bangladesh, and the increase in the scale of people-to-people exchanges between the two countries," Hu added.
The pragmatic cooperation between the two countries is an illustration for more South Asian countries to understand China's concept of good-neighborly friendship, the idea of sharing the fruits of development, and the image of China as a responsible major power, Qian said.
Balance and opportunity
Hasina also talked with China's top political advisor Wang Huning on Tuesday. Wang, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said that under the strategic guidance of the two countries' leaders, China and Bangladesh respect and treat each other with equality, setting a good example of friendly coexistence and mutually beneficial cooperation between countries.
But some Indian media outlets viewed Hasina's China visit as "a balancing act to keep the two key players happy," as "she needs India to be in power, and China for economic support." Some Indian media also talked down the cooperation between Beijing and Dhaka.
Hasina's visit to Beijing took place shortly after her visit to New Delhi, which tends to view some other South Asian countries including Bangladesh as its sphere of influence. Hasina made a two-day visit to India from June 21 to 22, during which the two sides signed agreements to expand cooperation in maritime security, the ocean economy, space and telecommunication sectors.
Before Hasina's visit to China, Bangladesh's ruling Awami League general secretary and Road Transport and Bridges Minister Obaidul Quader said on July 6 that "India is a political friend of Bangladesh and China is a development partner," explaining the country's relationship with two major powers.
Some analysts said that with the intensifying geopolitical game, some South Asian countries such as Bangladesh are facing a tough situation: If they want to achieve rapid economic and social development, they need to cooperate with China. However, close economic cooperation with China will inevitably draw political and security pressure from countries such as India and the US.
India always uses various excuses to obstruct and create hype whenever a South Asian leader visits China, but New Delhi should not be overly concerned that other countries' engagement with China will damage their relations with India, Hu said.
The development of bilateral relations between China and Bangladesh promoted by Hasina's visit will be conducive to the overall peace and stability in South Asia, Hu said.
The development of China-Bangladesh relations does not target any third party, said Qian, noting that China always opposes zero-sum game and stands for mutually beneficial cooperation.
Against the backdrop of complex geopolitics, China respects Bangladesh's strategic choice and has no objection to Bangladesh developing friendly and cooperative relations with other countries, Qian said.
For Bangladesh, in the face of pressure from India, the development of China-Bangladesh relations also provides a valuable choice for Dhaka to better safeguard its diplomatic independence and development opportunities, Qian said.
Saif
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PM’s China visit: Dhaka now has to play its cards right
Prime Minister Sheikh Hasina’s China visit has laid the foundation for a forward-looking and expansive relationship and Dhaka now needs to play its due role to make the most of it, according to international relations analysts.
PM's China visit: Dhaka now has to play its cards right
Say int'l relations experts
Photo: BSS
Prime Minister Sheikh Hasina's China visit has laid the foundation for a forward-looking and expansive relationship and Dhaka now needs to play its due role to make the most of it, according to international relations analysts.
Following their meeting on July 10, Hasina and Chinese President Xi Jinping announced the elevation of the bilateral relationship to "Comprehensive Strategic Partnership of Cooperation" (CSPC) from the "Strategic Partnership of Cooperation" established in 2016.
The elevation of the bilateral relationship to CSPC means the cooperation will deepen in all the sectors possible keeping in mind Bangladesh's vision for 2041, said M Humayun Kabir, a former diplomat.
Xi and Hasina agreed to "foster greater synergy between development strategies of the two countries", according to the joint statement issued on the conclusion of Hasina's three-day tour.
The Asian giant has huge capabilities in funding, technology, clean energy, healthcare, infrastructure and so on, according to Kabir.
"The question is if Bangladesh will be able to take advantage of the new relationship with China," he said.
The two sides agreed to deepen cooperation in trade, investment and finance, and to conclude the joint feasibility study on a China-Bangladesh free trade agreement.
"This will significantly boost trade between the two countries," said Kabir, also the president of Bangladesh Enterprise Institute, a non-profit, non-political research centre.
China is Bangladesh's largest trading partner by a wide margin, with bilateral trade amounting to upwards of $25 billion. However, Bangladesh's exports account for less than 3 percent of the sum.
"China has completed the entry procedures for Bangladesh's fresh mango exports to China, and welcomes Bangladesh to expand exports of jute, leather, aquatic products and other high-quality special products to China. The two sides agreed to further strengthen communication on the export of high-quality Bangladeshi agricultural products to China," the joint statement said.
Ahead of the three-day visit, there was expectation that Beijing would provide a $5 billion loan in yuan for trade facilitation to help Bangladesh cope with the strain on currency reserves, and billions more for projects.
At a press briefing after Hasina's meeting with Li Qiang on Wednesday, Foreign Minister Hasan Mahmud said China has agreed to provide 1 billion yuan (about $137 million) in assistance. However, the joint statement does not mention this assistance extended to Bangladesh.
China has now become more cautious in giving out loans after it was blamed for the economic crisis in some countries such as Sri Lanka, said Kabir, who served as Bangladesh's ambassador to Nepal and the US and the high commissioner to Australia.
In case of Bangladesh too, China is exercising the same caution.
For instance, China has decided to form a joint technical committee for assessing the projects proposed by Bangladesh, Kabir said.
"I would say that this visit is meant to build a relationship that is futuristic and expansive," he added.
China committed to provide about $20 billion during Xi's visit to Dhaka in 2016 for a host of mega projects. Some of the projects are yet to be implemented. So Bangladesh did not get the full amount pledged.
"So, China wants better scrutiny this time -- Beijing would like to look at the nitty-gritty of the projects this time," said Mahbub Uz Zaman, former ambassador to China.
Xi spoke about building party-to-party relationship between the Communist Party of China (CPC) and the ruling Awami League in Bangladesh. He said "good governance requires good party".
Asked what this means, Imtiaz Ahmed, executive director of the Centre for Alternatives, said: "This is Chinese approach of building relationship, which they do everywhere. Through this, they find it easier to implement their policies."
The Awami League can learn discipline and governance of the party from the CPC, said Ahmed, also a professor of international relations at the University of Dhaka.
Xi also assured Hasina of support for repatriating the more than a million Rohingya. However, analysts say how far it will work will depend on the situation in Myanmar, which is now going through a civil war.
Repatriation has not been possible in the last seven years despite several efforts including under a tripartite mechanism under Chinese leadership.
On this, Kabir said: "Chinese assurance is great and is required for the solution, but we will have to wait to see what happens in Myanmar, particularly in the Rakhine State in the days to come."
Say int'l relations experts
Photo: BSS
Prime Minister Sheikh Hasina's China visit has laid the foundation for a forward-looking and expansive relationship and Dhaka now needs to play its due role to make the most of it, according to international relations analysts.
Following their meeting on July 10, Hasina and Chinese President Xi Jinping announced the elevation of the bilateral relationship to "Comprehensive Strategic Partnership of Cooperation" (CSPC) from the "Strategic Partnership of Cooperation" established in 2016.
The elevation of the bilateral relationship to CSPC means the cooperation will deepen in all the sectors possible keeping in mind Bangladesh's vision for 2041, said M Humayun Kabir, a former diplomat.
Xi and Hasina agreed to "foster greater synergy between development strategies of the two countries", according to the joint statement issued on the conclusion of Hasina's three-day tour.
The Asian giant has huge capabilities in funding, technology, clean energy, healthcare, infrastructure and so on, according to Kabir.
"The question is if Bangladesh will be able to take advantage of the new relationship with China," he said.
The two sides agreed to deepen cooperation in trade, investment and finance, and to conclude the joint feasibility study on a China-Bangladesh free trade agreement.
"This will significantly boost trade between the two countries," said Kabir, also the president of Bangladesh Enterprise Institute, a non-profit, non-political research centre.
China is Bangladesh's largest trading partner by a wide margin, with bilateral trade amounting to upwards of $25 billion. However, Bangladesh's exports account for less than 3 percent of the sum.
"China has completed the entry procedures for Bangladesh's fresh mango exports to China, and welcomes Bangladesh to expand exports of jute, leather, aquatic products and other high-quality special products to China. The two sides agreed to further strengthen communication on the export of high-quality Bangladeshi agricultural products to China," the joint statement said.
Ahead of the three-day visit, there was expectation that Beijing would provide a $5 billion loan in yuan for trade facilitation to help Bangladesh cope with the strain on currency reserves, and billions more for projects.
At a press briefing after Hasina's meeting with Li Qiang on Wednesday, Foreign Minister Hasan Mahmud said China has agreed to provide 1 billion yuan (about $137 million) in assistance. However, the joint statement does not mention this assistance extended to Bangladesh.
China has now become more cautious in giving out loans after it was blamed for the economic crisis in some countries such as Sri Lanka, said Kabir, who served as Bangladesh's ambassador to Nepal and the US and the high commissioner to Australia.
In case of Bangladesh too, China is exercising the same caution.
For instance, China has decided to form a joint technical committee for assessing the projects proposed by Bangladesh, Kabir said.
"I would say that this visit is meant to build a relationship that is futuristic and expansive," he added.
China committed to provide about $20 billion during Xi's visit to Dhaka in 2016 for a host of mega projects. Some of the projects are yet to be implemented. So Bangladesh did not get the full amount pledged.
"So, China wants better scrutiny this time -- Beijing would like to look at the nitty-gritty of the projects this time," said Mahbub Uz Zaman, former ambassador to China.
Xi spoke about building party-to-party relationship between the Communist Party of China (CPC) and the ruling Awami League in Bangladesh. He said "good governance requires good party".
Asked what this means, Imtiaz Ahmed, executive director of the Centre for Alternatives, said: "This is Chinese approach of building relationship, which they do everywhere. Through this, they find it easier to implement their policies."
The Awami League can learn discipline and governance of the party from the CPC, said Ahmed, also a professor of international relations at the University of Dhaka.
Xi also assured Hasina of support for repatriating the more than a million Rohingya. However, analysts say how far it will work will depend on the situation in Myanmar, which is now going through a civil war.
Repatriation has not been possible in the last seven years despite several efforts including under a tripartite mechanism under Chinese leadership.
On this, Kabir said: "Chinese assurance is great and is required for the solution, but we will have to wait to see what happens in Myanmar, particularly in the Rakhine State in the days to come."
Saif
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Will there be any uptick in investment after PM’s China visit?
There was an expectation that investment inflows from China to Bangladesh would increase substantially following the Covid-19 pandemic as investors in China were looking for an alternative manufacturing hub.
Will there be any uptick in investment after PM's China visit?
There was an expectation that investment inflows from China to Bangladesh would increase substantially following the Covid-19 pandemic as investors in China were looking for an alternative manufacturing hub.
But that has not happened in reality. Instead, over the past six years, investment inflow from China has witnessed ups and downs but has remained far from the heights it had hit in the past.
Around $1.03 billion was invested in Bangladesh from Chinese sources in FY18 and $626 million in FY19. But the inflow fell to just $91 million in FY20 during the height of the pandemic. There were signs of recovery afterwards as $408 million arrived from China in FY21, but that number declined to $187 million in FY22 and $260 million in FY23.
The Chinese Economic and Industrial Zone (CEIZ) in Chattogram has often been highlighted as one avenue for boosting Chinese investment in Bangladesh. But construction of the project is yet to start despite eight years having passed since the Bangladesh Economic Zones Authority (Beza) first took the initiative.
Furthermore, a joint feasibility study to sign a free trade agreement (FTA) between Bangladesh and China has already been conducted. But the date for the beginning of formal negotiations remains unclear.
Against such a bleak backdrop, Bangladeshi businessmen were optimistic that Prime Minister Sheikh Hasina's recent visit to Beijing would provide the necessary impetus for the expansion of bilateral trade and increased foreign direct investment (FDI) from China.
During the visit, Bangladeshi and Chinese companies signed 16 memoranda of understanding (MoUs) to boost investment in Bangladesh. Under four of those MoUs, Bangladesh is set to receive $490 million.
The Chinese companies are expected to invest in Bangladesh's textile, electric vehicle, solar power, fintech and technology sectors.
Nihad Kabir, a former president of the Metropolitan Chamber of Commerce and Industry, said that alongside Chinese investors, the Asian Infrastructure Investment Bank had also shown an interest in investing heavily for big infrastructure projects in Bangladesh.
If the investments materialise as per the investment proposals and MoUs, it will bring a substantial amount of FDI from China, she said.
Although Kabir said that it would take time for the investments to materialise, she also highlighted the importance of the MoUs.
Ashraf Ahmed, president of the Dhaka Chamber of Commerce and Industry, said the visit occurred at a crucial time and is expected to open new areas of cooperation for trade and investment.
According to him, private sector trade and investment flows between the two countries are significantly larger than government-to-government transactions.
The visit focused largely on promoting cooperation between the two countries' private sector, he said, adding that widening trade in that area was very important for economic growth.
As of now, Bangladesh is operating on a large trade deficit with China. But exports to China have to be enhanced eventually to balance that, he said.
To that end, Ahmed said Bangladesh needs to position itself for growing markets in China, especially in areas where it has a competitive advantage.
Al Mamun Mridha, secretary general of the Bangladesh China Chamber of Commerce and Industry, said Chinese investors are keen to invest in different sectors.
He added that a high-powered business delegation would visit Bangladesh immediately to explore the country's business potential.
He added that around 1,000 Chinese investors and academicians took part in a trade and business summit during the Prime Minister's visit to Beijing.
Siddiqur Rahman, a former president of the Bangladesh Garment Manufacturers and Exporters Association, opined that Bangladesh would benefit from Chinese investment whether it is under a joint venture or not.
Additionally, Chinese businessmen will also benefit as their products will enter the US market for a lower duty than that levied on goods made in China, he said.
However, he ruled out a reduction in the trade gap between the two countries as Bangladesh is dependent on China for raw materials but China possesses everything from raw materials to technology and capital.
In a post made on the social media platform X, formerly known as Twitter, Salman F Rahman, the private industry and investment adviser to Bangladesh's prime minister, said Chinese President Xi Jinping has assured Bangladesh of several types of economic assistance, including interest-free loans.
Bangladesh and China will celebrate 50 years of diplomatic relations in 2025. On this occasion, China is keen to work on several projects to strengthen bilateral relations, he said.
Rahman added that China has promised to increase imports of jute and leather products, pharmaceuticals, mangoes and other fruits, and ceramics from Bangladesh and pledged to provide training in various trade, technical, agricultural and manufacturing sectors while also increasing scholarships for students.
Bangladesh exported goods worth $677 million to China while imported goods worth $22.90 billion from the nation in FY23, according to commerce ministry data.
There was an expectation that investment inflows from China to Bangladesh would increase substantially following the Covid-19 pandemic as investors in China were looking for an alternative manufacturing hub.
But that has not happened in reality. Instead, over the past six years, investment inflow from China has witnessed ups and downs but has remained far from the heights it had hit in the past.
Around $1.03 billion was invested in Bangladesh from Chinese sources in FY18 and $626 million in FY19. But the inflow fell to just $91 million in FY20 during the height of the pandemic. There were signs of recovery afterwards as $408 million arrived from China in FY21, but that number declined to $187 million in FY22 and $260 million in FY23.
The Chinese Economic and Industrial Zone (CEIZ) in Chattogram has often been highlighted as one avenue for boosting Chinese investment in Bangladesh. But construction of the project is yet to start despite eight years having passed since the Bangladesh Economic Zones Authority (Beza) first took the initiative.
Furthermore, a joint feasibility study to sign a free trade agreement (FTA) between Bangladesh and China has already been conducted. But the date for the beginning of formal negotiations remains unclear.
Against such a bleak backdrop, Bangladeshi businessmen were optimistic that Prime Minister Sheikh Hasina's recent visit to Beijing would provide the necessary impetus for the expansion of bilateral trade and increased foreign direct investment (FDI) from China.
During the visit, Bangladeshi and Chinese companies signed 16 memoranda of understanding (MoUs) to boost investment in Bangladesh. Under four of those MoUs, Bangladesh is set to receive $490 million.
The Chinese companies are expected to invest in Bangladesh's textile, electric vehicle, solar power, fintech and technology sectors.
Nihad Kabir, a former president of the Metropolitan Chamber of Commerce and Industry, said that alongside Chinese investors, the Asian Infrastructure Investment Bank had also shown an interest in investing heavily for big infrastructure projects in Bangladesh.
If the investments materialise as per the investment proposals and MoUs, it will bring a substantial amount of FDI from China, she said.
Although Kabir said that it would take time for the investments to materialise, she also highlighted the importance of the MoUs.
Ashraf Ahmed, president of the Dhaka Chamber of Commerce and Industry, said the visit occurred at a crucial time and is expected to open new areas of cooperation for trade and investment.
According to him, private sector trade and investment flows between the two countries are significantly larger than government-to-government transactions.
The visit focused largely on promoting cooperation between the two countries' private sector, he said, adding that widening trade in that area was very important for economic growth.
As of now, Bangladesh is operating on a large trade deficit with China. But exports to China have to be enhanced eventually to balance that, he said.
To that end, Ahmed said Bangladesh needs to position itself for growing markets in China, especially in areas where it has a competitive advantage.
Al Mamun Mridha, secretary general of the Bangladesh China Chamber of Commerce and Industry, said Chinese investors are keen to invest in different sectors.
He added that a high-powered business delegation would visit Bangladesh immediately to explore the country's business potential.
He added that around 1,000 Chinese investors and academicians took part in a trade and business summit during the Prime Minister's visit to Beijing.
Siddiqur Rahman, a former president of the Bangladesh Garment Manufacturers and Exporters Association, opined that Bangladesh would benefit from Chinese investment whether it is under a joint venture or not.
Additionally, Chinese businessmen will also benefit as their products will enter the US market for a lower duty than that levied on goods made in China, he said.
However, he ruled out a reduction in the trade gap between the two countries as Bangladesh is dependent on China for raw materials but China possesses everything from raw materials to technology and capital.
In a post made on the social media platform X, formerly known as Twitter, Salman F Rahman, the private industry and investment adviser to Bangladesh's prime minister, said Chinese President Xi Jinping has assured Bangladesh of several types of economic assistance, including interest-free loans.
Bangladesh and China will celebrate 50 years of diplomatic relations in 2025. On this occasion, China is keen to work on several projects to strengthen bilateral relations, he said.
Rahman added that China has promised to increase imports of jute and leather products, pharmaceuticals, mangoes and other fruits, and ceramics from Bangladesh and pledged to provide training in various trade, technical, agricultural and manufacturing sectors while also increasing scholarships for students.
Bangladesh exported goods worth $677 million to China while imported goods worth $22.90 billion from the nation in FY23, according to commerce ministry data.
