[🇧🇩] China is a Time Tested Friend and a Strategic Partner of Bangladesh

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Yunus’s China visit can open many doors

Although China is Bangladesh’s largest trading partner, Bangladeshi exports to China remain low.

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Yunus’s China visit can open many doors

FILE VISUAl: Anwar Sohel

Chief Adviser Prof Muhammad Yunus's tour to China marks a pivotal moment in Bangladesh-China bilateral relations, coinciding with the 50th anniversary of diplomatic ties between the two countries. China is currently Bangladesh's largest trading and defence partner, reflecting the robust and multifaceted nature of their bilateral ties.

According to Chinese Ambassador to Bangladesh Yao Wen, the chief adviser's visit is expected to be "successful" and "productive," with "some announcements" anticipated. While the specifics of these announcements remain unclear, Bangladesh Foreign Affairs Adviser M Touhid Hossain has indicated that the visit is unlikely to result in any formal agreements. However, several memoranda of understanding (MoUs)—non-binding but formal agreements—may be signed. This visit is expected to serve as a foundation for the recalibration of Bangladesh-China relations. Therefore, some areas require focused attention and action to yield tangible outcomes.

Although China is Bangladesh's largest trading partner, Bangladeshi exports to China remain low. In the last fiscal year, the trade deficit marginally increased by over one percent, reaching $16.45 billion. While China has granted 100 percent duty-free access for Bangladeshi products, this has not translated into a significant increase in exports due to a limited range of exportable goods, stringent value addition requirements, and a lack of competitiveness in key sectors.

Yunus's visit should prioritise strategies to diversify Bangladesh's exports to China and improve market access for Bangladeshi goods. In this regard, the Bangladesh Embassy to China can play a proactive role by organising exhibitions of Bangladeshi products in major Chinese cities to attract local consumers and businesses.

Regarding investments, China has made substantial contributions to Bangladesh's infrastructure and energy sectors through the Belt and Road Initiative (BRI). However, there remains potential to attract more investments, particularly in high-end manufacturing industries. The chief adviser's visit could facilitate discussions on encouraging Chinese companies to relocate their factories to Bangladesh—particularly the Chinese sunset industries. As China faces increasing trade barriers on the global stage, the sunset companies can bypass restrictions in Bangladesh while creating jobs and fostering industrial growth here.

The interim government of Bangladesh has also been negotiating with China to reduce the interest rates on existing loans from two to three percent to one percent and to extend the repayment period from 20 to 30 years. If successful, these adjustments would provide significant relief to Bangladesh's forex reserves and alleviate pressure on the economy.

The chief adviser's visit could also provide an opportunity to strengthen cooperation in the defence sector by exploring possibilities for defence technology transfer and the establishment of joint manufacturing capabilities. This would boost Bangladesh's domestic defence industry and enhance its military capabilities.

Affordable and high-quality healthcare remains limited in Bangladesh. China can take the opportunity to invest in Bangladesh's healthcare sector by building specialised hospital chains, training medical professionals, and providing advanced medical technologies. It can also position itself as an alternative destination for medical treatment by easing visa policies for Bangladeshi patients and reducing flight costs.

Another key area that warrants attention during the visit is the Teesta River Comprehensive Management Project. China remains willing to engage in the project, and this visit provides an opportunity for Bangladesh to further analyse the prospect of China contributing to the management of the river, which may benefit both countries.

The Rohingya refugee crisis continues to be one of Bangladesh's most pressing diplomatic challenges, with more than 1.2 million refugees living at the refugee camps in Cox's Bazar. The international community has largely sidelined the crisis, and humanitarian assistance has been reduced.

Given China's significant influence over Myanmar, it could play a crucial role in mediating the repatriation process. The ongoing control of the Arakan Army in most of Rakhine state presents an opportunity for China to leverage its influence over the group to help resolve the crisis. The chief adviser's China tour could mark a significant step in facilitating a peaceful solution to the Rohingya issue, further consolidating China's position as a key diplomatic player in the region.

However, this visit also brings challenges, and Bangladesh must navigate a delicate balancing act in its foreign policy decisions. While fostering closer ties with China, Bangladesh must retain its strategic autonomy and avoid becoming a pawn in larger geopolitical games by pursuing policies that align with national interests.

Dr M Jashim Uddin is director of the Center for Peace Studies (CPS) at North South University (NSU).

Kazi Fahim Ahmed has a master's in security studies from the Department of International Relations at the University of Dhaka.​

 

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What impact will Yunus' visit to China have on Bangladesh?

Diplomatic activities between Bangladesh and China have notably increased after the formation of an interim government under the leadership of Professor Muhammad Yunus following the student-people's uprising. Following the fall of the Hasina government, China quickly expressed support for the...

en.prothomalo.com

What impact will Yunus' visit to China have on Bangladesh?

SK Tawfique Haque, Syeda Lasna Kabir, and Mohammad Esa Ibn Belal have written about the geo-economic significance of Chief Advisor Professor Muhammad Yunus' visit to China.

Upon the arrival of Chief Advisor Professor Muhammad Yunus in China, he was greeted by Bangladesh's ambassador, Md Nazmul Islam, and the Vice Governor of Hainan Province. BSS

Diplomatic activities between Bangladesh and China have notably increased after the formation of an interim government under the leadership of Professor Muhammad Yunus following the student-people's uprising. Following the fall of the Hasina government, China quickly expressed support for the newly formed Yunus government and pledged to strengthen diplomatic and economic cooperation.

On 12 October last year, after Professor Yunus assumed power, two Chinese warships visited Bangladesh on a goodwill tour, which had a significant impact on the military and diplomatic relations between the two countries. Additionally, after the downfall of the Hasina government, Chinese authorities began regular meetings with almost all of Bangladesh’s active political parties and invited their representatives to China, signaling a new horizon in bilateral diplomacy. The most significant part of this ongoing diplomatic progress is expected to be the Chief Advisor’s visit to China.

The Chief Advisor’s visit to China is particularly significant as it occurs during a period when a large portion of the population is dissatisfied with India. The excessive closeness between the now-defunct authoritarian Awami League and India, indiscriminate killings of innocent Bangladeshis at the border, and the failure to receive a fair share of water resources have led to increasing public resentment towards India. As a result, diplomatic relations between Bangladesh and India are at a low point. In such a context, the Chief Advisor’s visit to China could have a significant impact on Bangladesh’s economy, and in the long run, also play a crucial role in regional and global geopolitics.

Belt and Road Initiative (BRI)

Under the BRI, China has promised a $40 billion package to Bangladesh, with $26 billion allocated for various infrastructure projects and $14 billion for joint investment projects. However, so far, China has approved a loan of $4.45 billion for 35 projects.

Analysts believe that if $10 billion worth of investments under the BRI are implemented, Bangladesh’s GDP could increase by nearly 4 per cent. Thus, the BRI is likely to be a focal point of discussions during the visit.

Although the Chief Advisor might propose a few new projects under this initiative, the main goal will be to ensure the rapid implementation and handover of existing projects. Many of these projects have already faced delays, leading to cost overruns and setbacks in development.

In addition to the BRI, China has three other initiatives— the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative. While Bangladesh may join the Global Development Initiative during this visit, there has been little interest in the other two initiatives from Dhaka. This is because Western powers have expressed concerns about deepening relations with China, and Bangladesh is no exception.

Chinese loan interest rates and repayment terms

Before the Chief Advisor’s visit, China had agreed in principle to extend the repayment period for Bangladesh’s loans. This decision was communicated during a bilateral meeting between Bangladesh's Foreign Affairs Advisor, Md Touhid Hossain, and China's Foreign Minister Wang Yi in Beijing.

During the discussion, Touhid Hossain requested that the interest rate be reduced from 2-3 per cent to 1 per cent, that commitment fees be waived, and that the repayment period for preferential buyer loans and government loans be extended from 20 to 30 years. Wang Yi praised Bangladesh's strong record of repaying loans and agreed in principle to extend the repayment period. However, he only assured consideration of the interest rate reduction. Furthermore, China announced that Bangladesh would retain duty-free and quota-free access to the Chinese market for three years after leaving the least-developed country (LDC) list.

While the extension of loan repayment terms is a positive decision for Bangladesh, it seems unlikely that China will reduce the interest rate from 2-3 per cent to 1 per cent. Sri Lanka had also received loans at the same interest rate at the same time. Reducing the interest rate for Bangladesh could set a precedent for other countries, which could pose challenges for China's economic policies. Therefore, while Bangladesh might get some concessions, there is little likelihood of a significant reduction in interest rates. However, Professor Yunus is likely to bring up the issue during discussions, with a focus on Bangladesh’s economic development and financial stability.

Free Trade Agreement

A free trade agreement (FTA) is also likely to be an important agenda item during the visit. However, significant decisions regarding the FTA are unlikely at this stage. Although the feasibility of an FTA has been assessed, and discussions are expected to begin soon, it has not yet reached the stage of formal negotiations. Therefore, tangible progress on this issue is not expected during the visit. Instead, the focus will likely be on promises to strengthen trade relations and expressions of friendship in diplomatic terms. In practice, however, there may not be any visible progress on the FTA at this time.

Health Sector Cooperation

One of the important areas of discussion during the visit will be health sector cooperation. China has proposed that four hospitals in Kunming city be specifically allocated for the treatment of Bangladeshi patients. Additionally, China has plans to build a modern, high-quality hospital in Dhaka, which will further strengthen health sector cooperation between the two countries.

This health sector initiative is not only aimed at improving medical facilities but also serves as a significant geopolitical step. Currently, the India-Bangladesh relationship is somewhat tense. Thus, this initiative will not only enhance Bangladesh's healthcare but also strengthen its diplomatic position, demonstrating that Bangladesh is capable of building partnerships with multiple countries independently, rather than relying on any single nation.

Water Distribution and Cross-Border River Management

Issues related to the Teesta and Brahmaputra rivers are likely to be critical discussion points during the visit. Bangladesh views the Teesta project positively, but its implementation could create new tensions in the region, especially with India, which is also reliant on Teesta water. At the same time, China is constructing dams on the Brahmaputra River, which has raised concerns among Bangladesh’s policymakers and environmental experts. However, China has assured that these dams will not have any harmful impact on downstream water flow.

Bangladesh has long suffered from the lack of a fair share of water distribution, whether with India over Teesta or potentially with China over the Brahmaputra. Therefore, this issue is both politically and economically significant. Professor Yunus will likely raise this matter with Chinese leaders. However, diplomatic experts suggest that China may avoid deep discussions on this and focus more on less controversial issues. As a result, Bangladesh will need to carefully devise a strategy to secure its water rights while maintaining a balanced relationship with both China and India.

Rohingya Crisis

Both China and Bangladesh view the repatriation of the Rohingya refugees as a long-term solution, but little progress has been made on this crisis. However, one positive aspect of the visit could be discussions on securing new funds for the Rohingyas. If new assistance or commitments are secured, it could provide a glimmer of hope amid the ongoing crisis in Bangladesh. However, Bangladesh must remain cautious and ensure that such discussions lead to effective initiatives, as taking action before the situation deepens is critical.

Another important outcome of the visit could be the establishment of a practical dialogue mechanism with various stakeholders in the Rakhine State, including the Arakan Army. Given the current situation, it is crucial to engage with these groups to create an environment conducive to the safe return of the Rohingyas. Bangladesh needs strong international support to address this crisis, and China could play a significant role in providing that support.

Trade and Investment

The discussions are also likely to focus on enhancing trade and investment, particularly in areas such as agriculture, energy, transportation, water management, and industrial development. China may discuss the import of advanced agricultural machinery and seed production technology for Bangladesh, aimed at modernising the agriculture and poultry sectors and increasing productivity.

Geopolitical Balance

Alongside agreements and commitments with China, it is also essential to consider the global geopolitical context during the Chief Advisor’s visit. Bangladesh needs to clarify to the United States and Western countries that there is no cause for concern regarding Chinese investments in Bangladesh’s infrastructure; in fact, these development projects could be beneficial for Western countries as well, as weak infrastructure is a primary barrier to foreign investment. Without improved infrastructure, it is impossible to create a sustainable investment environment.

Bangladesh can maintain strategic balance by securing loans from China while also creating opportunities for foreign direct investment (FDI) from the United States and Western countries. However, Bangladesh’s most effective strategy would be to avoid taking sides in the China-US rivalry and instead work as a bridge for dialogue and understanding between the two.

Bangladesh could also play a role as a neutral ground for resolving East-West disputes, with Dhaka emerging as a key centre for international peace dialogues. To succeed in this role, however, Bangladesh will need strong leadership and effective strategies to ensure national interests are protected while maintaining diplomatic balance.

*SK Tawfique Haque, professor and Director of South Asian Institute of Policy and Governance (SIPG) at North South University

*Syeda Lasna Kabir, Professor, Department of Public Administration, University of Dhaka

*Mohammad Esa Ibn Belal, Research Associate, South Asian Institute of Policy and Governance (SIPG), North South University.

*This article, originally published in Prothom Alo online edition, has been rewritten in English by Rabiul Islam​

 

[Saif]

Dhaka seeks relaxed loan terms, relocation of industries

Bangladesh seeks China's support in an array of development and livelihood projects and reduction in interest on Chinese loans from 3.0 per cent to 1.0-2.0 per cent for renewed bilateral cooperation. Also placed a request for waiver of commitment fees on the Chinese-funded projects in Bangladesh w

thefinancialexpress.com.bd

CA's talks with China's Vice-Premier
Dhaka seeks relaxed loan terms, relocation of industries
FE REPORT
Published :
Mar 27, 2025 23:45
Updated :
Mar 27, 2025 23:45

Chief Adviser Muhammad Yunus speaks at the conference of the Baoa Forum for Asia (BFA) on Thursday during his four-day visit to China.

Bangladesh seeks China's support in an array of development and livelihood projects and reduction in interest on Chinese loans from 3.0 per cent to 1.0-2.0 per cent for renewed bilateral cooperation.

Also placed a request for waiver of commitment fees on the Chinese-funded projects in Bangladesh where the East Asian country has been financing and executing numerous development major projects.

The proposals -- and some assurances from the Chinese side -- came during talks when Chinese Executive Vice-Premier Ding Xuexiang met Bangladesh Chief Adviser Professor Muhammad Yunus on the sidelines of the Boao Forum for Asia Annual Conference in the Hainan Island on China coast on Thursday.

The two leaders led a bilateral meeting between the two nations, said a spokesman for the CA Office in Dhaka.

China and Bangladesh agreed to deepen their relationships as Beijing said it would extend full support to the Interim Government of the country.

The two countries also agreed to boost investment, trade and cultural ties and people-to-people exchanges as they mark 50 years of the establishment of their diplomatic relations.

"President Xi Jinping attaches tremendous importance to your visit," Vice-Premier Ding said, adding that China hopes Bangladesh would prosper and grow under the leadership of Professor Yunus.

During the meeting, the head of interim government of Bangladesh reaffirmed the country's commitment to the One-China Policy and said Dhaka takes pride in being the first South Asian country to join China's Belt and Road Initiative or BRI.

The Chief Adviser also sought Beijing's help in facilitating the relocation of Chinese manufacturing industries, including ready-made garments, electric vehicles, light machinery, high-tech electronics, and chip-manufacturing and solar-panel industries to Bangladesh. Vice-Premier Ding Xuexiang said Beijing would extend duty-free and quota-free access of Bangladeshi goods to China until 2028 - two years after Dhaka graduates from the status of Least- Developed Country (LDC) to a middle-income one. "Beijing is also keen to start free-trade negotiations with Dhaka," he was quoted as saying.

The Executive Vice-Premier said his country would fund modernisation efforts of the Mongla seaport and the Dasherkandi Sewage project.

He mentioned that China last year signed a protocol to import mangoes from Bangladesh. Officials said Bangladesh's mango export to China would begin this summer. China would also import jackfruit and guava and other aquatic products in Its move to minimise huge trade imbalance against Dhaka, he said.

He assured that the Chinese government and its universities would grant more scholarships to Bangladeshi students. Several thousand Bangladeshi students are already studying in Chinese universities.

Also, the Vice-Premier assured of Chinese funding for the purchase of four oceangoing vessels for Dhaka's state-run Bangladesh Shipping Corporation.

He said Beijing would foster dialogue between Bangladesh and Myanmar in an effort to resolve the Rohingya crisis.

The Chief Adviser thanked the Chinese leadership for their support, saying that Thursday's meeting "marks another milestone in the ever-deepening Bangladesh-China partnership".

Foreign Adviser Touhid Hossain, Energy, Rail and Road Transport Adviser Fouzul Kabir Khan, High Representative of the Chief Adviser Dr Khalilur Rahman and BIDA Executive Chairman Ashiq Chowdhury were present during the meeting.​

 

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Dhaka secures $2.1b investment pledge from China

President Xi agreed to encourage Chinese firms to move manufacturing to Bangladesh

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Dhaka secures $2.1b investment pledge from China

Photo courtesy: CA Press Wing

Bangladesh has secured a commitment of $2.1 billion in Chinese investments, loans, and grants from the Chinese government and its companies during Chief Adviser Professor Muhammad Yunus's "milestone" visit to China, according to officials.

Bangladeshi officials and Chinese Ambassador to Dhaka Yao Wen said that nearly 30 Chinese companies have pledged to invest $1 billion in the exclusive Chinese Economic and Industrial Zone (CEIZ) after the chief adviser urged private enterprises to invest in Bangladesh's manufacturing sector.

China has also agreed to lend $400 million for the Mongla Port modernisation project, $350 million for the development of the CEIZ, and another $150 million as technical assistance. The remaining amount will come as grants and other forms of lending.

"It is a milestone visit," Chinese envoy Yao Wen said, referring to the chief adviser's four-day bilateral tour to China.

Ashik Chowdhury, the executive chairman of the Bangladesh Investment Development Authority and the Bangladesh Economic Zone Authority, said the visit could propel a "surge" of Chinese investment in Bangladesh.

During the meeting, on CA's request, President Xi agreed to encourage Chinese firms to move manufacturing to Bangladesh to diversify their production, Chowdhury said.

"This visit will play a big part in persuading many Chinese companies to invest in Bangladesh. It is just a matter of time," he added.

Earlier today, Prof Yunus and Ashik Chowdhury briefed officials from more than 100 Chinese companies on investment opportunities in Bangladesh's manufacturing sector, particularly in advanced textiles, pharmaceuticals, light engineering, and renewable energy. They spoke during three interactive sessions in Beijing.

"So far, the response has been very positive," Chowdhury said.​

 

[Saif]

Bangladesh seeks a 50-year masterplan from China for water management

The chief adviser made the call when Li Guoying, water resources minister of China, met him at a state guest house in Beijing on Friday

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Bangladesh seeks a 50-year masterplan from China for water management
Staff Correspondent
Dhaka
Published: 28 Mar 2025, 21: 22

Chief adviser Professor Muhammad Yunus with Chinese water resources minister Li Guoying at a state guest house in China on 28 March, 2025. PID

Chief adviser Professor Muhammad Yunus has sought a 50-year masterplan from China to manage the river and water system in Bangladesh, which is crisscrossed by hundreds of rivers.

The chief adviser made the call when Li Guoying, water resources minister of China, met him at a state guest house in Beijing on the third day of his four-day visit to the Asian country, according to a statement shared on the chief adviser’s Facebook handle.

During his discussion with the Chinese minister, Professor Yunus praised the Chinese water and flood management system, saying the country has done wonders in managing some of the intractable water issues. “We have the same problem that you have. So, we'll be happy if you share your experiences”.

“Bangladesh is a delta country; we have a country crisscrossed with hundreds of rivers. Water gives us life, but sometimes it becomes an enemy. Now that the population has increased manifold, we have to remain careful what kind of damages it causes to the ecosystem,” he added.

Calling China the master of water management, the chief adviser said Bangladesh has a lot to learn from the country and urged China to share the vision of president Xi Jinping in water management with the country.

“We have come here to learn from you: how we can make water resources useful to people,” he said.

The chief adviser said that the increase of population and demand for development are why people are grabbing lands by riversides.

The same demand has increased in upper riparian India, he said, adding that siltation was also causing a problem creating land in the middle of rivers, shrinking them sometimes, leading them to death.

The Chinese minister acknowledged that China and Bangladesh share a similar challenge in water management. He promised technical support and expertise to Bangladesh.

“To manage water is a key management issue for Bangladesh; China is facing similar challenges,” he said, acknowledging that 85 per cent of Bangladesh’s people live in flood-prone plains, which has made water management complicated for the country.

He said that President Xi has put forward a master plan for China which the country was using to overcome the challenges in water management.

“We need your help to design the plan for us,” the chief adviser said.

The chief adviser added that Bangladesh’s problem lies not just with one river but with the system.

He mentioned the Teesta river system and cleaning the polluted water in rivers surrounding Dhaka for particular help.

The chief adviser is now on a four-day visit in China, holding meetings with Chinese leaders and investors to boost mutual cooperation with the country.​