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

[Saif]

Chinese firm to invest $50m in Bepza EZ

China-based Home Joy Socks Bangladesh Company Limited signed an agreement with Bangladesh Export Processing Zones Authority (Bepza) recently to set up a sock and garment manufacturing factory in Bepza Economic Zone with an investment of $50 million.

www.thedailystar.net

Chinese firm to invest $50m in Bepza EZ

China-based Home Joy Socks Bangladesh Company Limited signed an agreement with Bangladesh Export Processing Zones Authority (Bepza) recently to set up a sock and garment manufacturing factory in Bepza Economic Zone with an investment of $50 million.

The company has set a target to annually produce 100 million pairs of socks, 100 million pairs of tights, 100 million pieces of lingerie and 50 million pieces of knitwear for infants.

The investment will create employment opportunities for 4,980 Bangladeshi nationals at the factory inside Bepza Economic Zone, which is located at Mirsarai in Chattogram.

Md Ashraful Kabir, member (investment promotion) of Bepza, and Fu Wenlong, managing director of the company, penned the deal at Bepza Complex in Dhaka, said a press release.

Maj Gen Abul Kalam Mohammad Ziaur Rahman, executive chairman of Bepza, thanked the company for deciding to invest in Bepza Economic Zone.

He hoped that the foreign direct investment of this company would have a significant impact on the socioeconomic development of Bangladesh.

So far, 33 companies, including Home Joy Socks Bangladesh Company Limited, have signed agreements proposing to investment a total of $768.46 million to set up factories inside Bepza Economic Zone.

Among them, three have already started commercial operations.

Among others, Mohammad Faruque Alam, member (engineering) of Bepza Economic Zone, ANM Foyzul Haque, member (finance), ASM Zamshed Khondaker, executive director (admin), Md Tanvir Hossain, executive director (investment promotion), Mohammad Anamul Haque, project director, were also present.​

 

[Saif]

China to provide 100 duty-free access of Bangladeshi exports

China has decided to provide 100 duty-free access of Bangladeshi exports, alongside the other Least Developed Countries, to the Chinese market

www.thedailystar.net

China to provide 100 duty-free access of Bangladeshi exports

China has decided to provide 100 duty-free access of Bangladeshi exports, alongside the other Least Developed Countries, to the Chinese market.

Chinese Ambassador to Bangladesh Yao Wen conveyed the decision when he called on Bangladesh Foreign Secretary Jashim Uddin at the foreign ministry today.

"The Chinese ambassador said in the Sino-Africa summit in early September, China decided to provide 100 percent tariff line to the LDCs including Bangladesh," Jashim Uddin told reporters.

Earlier in 2022, China granted duty-free access to 98 percent of Bangladeshi goods, including 383 new products, especially leather and leather-made goods. It was an increase from 97 percent duty-free facility to Bangladeshi products in 2020.

China is Bangladesh's largest trading partner, with China exporting products to Bangladesh worth more than $22.5 billion, while Bangladesh's export is only about $600 million.

Jashim Uddin said the highest foreign direct investment after the formation of the interim government came from China, and it is about $8 million.

"We are expecting increase in our export to China," he said, adding that the procedures of exporting mango to Bangladesh is almost completing. "We can export mango to China from next year."

The foreign secretary also said Bangladesh is also working with China to export other fruits like jackfruit, guava, some other products.

In FY 2019-20, China imported $2.4 trillion worth of goods where Bangladesh's portion was only 0.05 percent demonstrating the huge trade scope that existed in the Chinese market for Bangladesh.

MA Razzaque, head of Research and Policy Integration for Development, in a research said if Bangladesh can grab only 1 percent share of China's market, then it could earn $25 billion.

Economists say Bangladesh's main export item is readymade garments and increasing export to China will need require Bangladesh to diversify its export basket.​

 

[Saif]

Govt urges China to reduce loan interest, extend repayment period

The government has requested China to lower the interest rates on existing Chinese loans to 1 percent and extend the repayment period to 30 years.

www.thedailystar.net

Govt urges China to reduce loan interest, extend repayment period

The government has requested China to lower the interest rates on existing Chinese loans to 1 percent and extend the repayment period to 30 years.

To this end, the Economic Relations Division (ERD) of the Ministry of Finance sent a letter to Beijing early this week, ERD Secretary Shahriar Kader Siddiky confirmed to The Daily Star.

Currently, interest rates on Chinese loans range from 2-3 percent with a repayment period of 20 years.

ERD officials said that if they cannot secure interest rate cuts for ongoing Chinese loans, they will attempt to get it along with extended repayments for new Chinese borrowing.

In his address to the nation on Wednesday, Chief Adviser of the interim government Professor Muhammad Yunus said Bangladesh is seeking lower rates and extended repayments for foreign loans to alleviate pressure on its fast-depleting foreign exchange reserves.

Professor Yunus said Bangladesh has requested China to reduce the interest rates on its loans and to extend the repayment tenure.

Chinese President Xi Jinping during his visit to Bangladesh in October 2016 pledged $20 billion -- the largest amount committed by a bilateral partner of Bangladesh -- over the following four years to implement 27 projects.

Following the loan promise, agreements were signed on a project-by-project basis. As of this January, Dhaka and Beijing had managed to sign agreements on only nine projects, totalling $8.08 billion, according to ERD figures.

Of the $8.08 billion, Bangladesh has only been able to utilise $4.91 billion, less than a quarter of the money promised by China.

Now, the interim government says the remaining 18 projects would be reviewed to determine their economic priority amid the current context.

LOAN RELIEF TALKS WITH RUSSIA ON TOO

Chief Adviser Yunus also said Bangladesh had requested Russia to lower its interest rates and allow extended repayments as well.

Yunus said that the government was negotiating with the Russian Federation regarding the advance payment for the ongoing Rooppur Nuclear Power Plant and outstanding debts.

The $11.38 billion nuclear plant loan from Moscow covers 90 percent of the project cost. Besides, Bangladesh took a $500 million Russian loan for the primary work of the project.

Following the US financial sanctions on Moscow after Russia's invasion of Ukraine in 2022, Bangladesh has been facing challenges in repaying the $500 million loan and interest payments.

As a result, the outstanding loans to Russia have reached over $600 million to date.

Upon the recommendation of the International Monetary Fund (IMF), the government is setting aside the outstanding amount in a separate account at the Bangladesh Bank. Whenever funds are added to the account, Russia receives a notification.

The nuclear plant agreement was signed between Bangladesh and Russia in 2016, with disbursements beginning in 2017.

According to the agreement, the government will have to repay the loan in 20 years, from March 2027 to 2047, with a 10-year grace period ending in 2027.

The Russian loan carries an interest rate of the London Interbank Offered Rate (LIBOR) plus 1.75 percent. But the interest rate will not exceed 4 percent.

A senior ERD official said Russia has sent multiple letters to Bangladesh requesting repayment in Chinese Yuan.

A meeting was held last week between Bangladesh and Russia to discuss the overdue amount, penalty charges and other related matters.

Another finance ministry official said that the Bangladesh side requested Russia to provide a solution for repaying the funds that does not violate US sanctions.

The local payment of the project to Russian contractors is being paid timely.

Due to the high SOFR rate, the interest rate on the Russian loan is currently approaching its maximum level. The ERD will request Russia to reduce the interest rate and penalty charges.​

 

[Krishna with Flute]

This is a narrative which was very popular in Pakistan. Pakistan and China's friendship was deeper than ocean and higher than mountain. Situation has changed a lot. China was never a great friend of BD. Pusing fake narratives will fall flat against geopolitical reality.

 

[Saif]

This is a narrative which was very popular in Pakistan. Pakistan and China's friendship was deeper than ocean and higher than mountain. Situation has changed a lot. China was never a great friend of BD. Pusing fake narratives will fall flat against geopolitical reality.

Your geopolitical knowledge is based on James Bond 007 movie. Quit watching so many Hollywood/Bollywood movies. Geopolitical reality is something which is beyond your comprehension.

 

[Bilal9]

How will Bangladesh-China relations shape up?

The interim government must talk about jobs, industrialisation and the partnership with China

www.thedailystar.net

How will Bangladesh-China relations shape up?
The interim government must talk about jobs, industrialisation and the partnership with China

View attachment 7715
VISUAL: ANWAR SOHEL

If Bangladesh is suspended within the geopolitical tripod of India, China and the United States, where are we positioning now? The current discourse suggests that priorities are set where the near-neighbour with the largest GDP on the planet only gets bronze, not silver, and certainly not gold.

Beijing keeps its customary quiet demeanour, scrupulously keeping to its decades-long policy of not publicly interfering in internal matters. They are, however, quite interested in the events of the Bengal delta. The Global Times on August 12 noted that Donald Lu's visit in May was seen by some as "part of a strategy to pressure Hasina into acting against China." Liu Zongzi, director of the Center of South Asia Studies at the Shanghai Institute for International Studies, guessed that the reason for the US "seeking to overthrow her [Hasina]" was "(her non-compliance) with the US on many issues."

Myanmar and St Martin's Island

Let's chat about St Martin's Island, a tiny, three square-kilometre coral outpost, as referred to in Chinese media. I visited the island—also known as Narikel Jinjira—in 2001, staying there for a night—a time when it was still not on the tourist trail. It took mere minutes to walk from one end to the other. Could this fragile place really be the location for a US base, to add to their 800-plus others around the globe? Eight kilometres off the coast of Arakan, some suggest it could be a listening post and a forward deployment point. In the age of drones, could one intervene in Arakan and the rest of Myanmar? It reminds us how Bangladesh and Myanmar security forces faced off each other in 2018.

Whether it is St Martin's or Teknaf is not the issue. Beijing is naturally alarmed by the civil war in Myanmar, with which it shares a long porous border. Instability in this resource-rich place directly affects Yunnan. Given that the US is confronting China in the Taiwan Straits, it is plausible that a "second front" might appear on the Irrawaddy (Ayeyarwady). If Dhaka shifts from Delhi to Washington's orbit with this new administration (or possibly a BNP one), Beijing will naturally look at the security implications across the Naf River and beyond.

In 2024, the unipolar world of yesteryear has disappeared. China is the manufacturing core of the world. It is the largest consumer market, too. It is just that we have little to sell to them, hence the urgent necessity to set up newer production lines to create higher skilled jobs.

More than a million Rohingya remain trapped in an open air confinement in Bangladesh's Cox's Bazar. Imploring China to assist with their repatriation begs the question: why are they going to spend enormous amounts of political capital in dealing with the brutal Tatmadaw or the Arakan Army? Dhaka needs to formulate a much broader policy on Myanmar, which takes into consideration Beijing's anxieties and seeks common ground between the two. That would be a first. Besides the Rohingya, how often have our political elites ever evinced an interest in Myanmar—and thus China?

There was one time. In 2012, there were talks of Chinese willingness to build a direct road from Kunming via Mandalay to Teknaf, which was shelved. India leaned on Yangon to block that lifeline. Later, Delhi also put an end to the longer route from Kunming to Kolkata, via Dhaka, which had been rebranded as BCIM (Bangladesh-China-India-Myanmar Economic Corridor).

Treating China like a cash cow?

This is where we come to the nub of the problem. We see China as just a giant foreign aid ATM. They are ready to lend and build as part of the Belt and Road Initiative (BRI), but they also seek a deeper partnership.

Even though I had my fears, I wrote a piece in this daily in July, titled "Mission to China." I was shocked how disastrous the trip to Beijing turned out to be. Last year, in discussions in Dhaka, I was led to believe that the Awami League government would shift dramatically to Beijing after securing its victory in the January 7 (s)election. But would Delhi allow such a thing? This year, Sheikh Hasina made not one, but two, visits to Delhi. The second one looked like a dressing down by the South Block. Chinese offers to invest over a billion dollars in saving the little water that came from the Teesta River were to be rejected. So were any major breakthroughs. So, the former foreign minister, Hasan Mahmud, and associates bandied about the sum of money they would ask out of China. $5 billion worth of yuan, which became $2 billion. More infrastructure—easy to syphon commissions from, perhaps.

This was capped off by a severe breach of diplomatic protocol. Hasina and her courtiers tore up the schedule and returned one night earlier. Mahmud claimed it was because she was terribly ill. Even if it was because they got wind of the seriousness of the student revolt, the then foreign minister and colleagues could have remained. But no, they returned—all smiles. Criticisms were batted away with a prime ministerial diagnosis that our heads had to be examined.

As a gift, China upgraded the relationship to that of a Comprehensive Strategic Cooperative Partnership. Has anyone noticed much of any dialogue or observations about this?

That was then, this is now

Over the last decade, we have been unable to work with China to build a new industrial export sector to wean us away from our dangerous dependency on the RMG sector. Jagaran Chakma's report in this daily last month detailed the painful odyssey of the Chinese Economic and Industrial Zone. The 784-acre site in Chattogram was allocated for Chinese industry. Intended to create as many as 200,000 jobs, it is still inoperative for eight long years.

The interim government must talk about jobs, industrialisation and the partnership with China. Last month, the issue, at its ultimate core, was not only the unfair distribution of bureaucratic posts; it was also the profound lack of decent employment in the private sector. To solve that, one needs a policy, a strategy and shedloads of capital. Right now, only China offers that quantity of capital and expertise to invest in new industries. Supply chains, component-producing factories, industrial clusters are all exporting to earn dollars and yuan. This should form the basis of the developmental discourse, and it should be steered towards modern industry and associated technology.

In 2024, the unipolar world of yesteryear has disappeared. China is the manufacturing core of the world. It is the largest consumer market, too. It is just that we have little to sell to them, hence the urgent necessity to set up newer production lines to create higher skilled jobs.

Can Md Touhid Hossain convince us that Bangladesh has not moved merely from the Indian leg of the tripod directly to a distant Western power? I would like to hear more about how Bangladesh will work with China, to genuinely further mutual interests. This is still a least developed country. Tens of millions of young Bangladeshis are rightly impatient. Time is short.

Farid Erkizia Bakht is a political analyst.​

Great article - though I must say Mr. Bakht belabors the points and confuses some.

The relationship with China mainly hinges on three (laser-focused) things (none of them fiscal),

1. Creating export jobs in massive numbers a la Chinese and Vietnamese style capitalism and investments. We need to create "one stop" business license and factory rental arrangements for Chinese investors (with Mandarin/Cantonese speaker assistance if necessary) and invite them to Dhaka for business tours. This is how they did it in China and it needs to be done now.

2. Creating critical (as opposed to superfluous/fanciful/wasteful) infra projects (road/rail/marine container logistics) focused on export effort. Our young people are ready and so are the local entrepreneurs and EPZ infra. We are wasting our pricing advantage before we go into middle income trap soon.

3. Create appropriate defensive preparation and tools/framework for military with Chinese help to resist any misadventure from any neighbor. This needs to take into account self-sufficiency of shipbuilding, armament, missiles and ammunitions locally as much as possible. We are still so far away from having a credible Navy for a nation our size. And Air Force as well.

@Saif Bhai please keep me honest and tell me if I have missed anything.

Along with Chinese help, we also need to coordinate with Pakistan and Turkey regarding setting up armament, aircraft, missiles and ammunitions production locally. Much more so than being done at present.

The days of Hasina limiting our armed forces to appease outsiders are over.

 

[Bilal9]

Your geopolitical knowledge is based on James Bond 007 movie. Quit watching so many Hollywood/Bollywood movies. Geopolitical reality is something which is beyond your comprehension.

In addition, I am getting rather weary of bots pushing "China bad, India good" theories in propaganda fashion.

@Krishna with Flute - you need to respond to conversation and people asking you for thoughtful responses.

For example I asked you a question in another thread to respond to three questions - you never did.

This means you don't want to interact. In the forum, posts of no value and only pushing propaganda, help no one. Vigorous exchange of ideas are what attracts folks to a forum.

If all you want to do is push propaganda to bad mouth China, then you will have people ignore you. The quality of your posts leave much to be desired I am afraid.

 

[Saif]

Great article - though I must say Mr. Bakht belabors the points and confuses some.

The relationship with China mainly hinges on three (laser-focused) things (none of them fiscal),

1. Creating export jobs in massive numbers a la Chinese and Vietnamese style capitalism and investments. Invite

2. Creating critical (as opposed to superfluous/fanciful/wasteful) infra projects (road/rail/marine container logistics) focused on export effort. Our young people are ready and so are the local entrepreneurs and EPZ infra. We are wasting our pricing advantage before we go into middle income trap soon.

3. Create appropriate defensive preparation and tools/framework for military with Chinese help to resist any misadventure from any neighbor. This needs to take into account self-sufficiency of shipbuilding, armament, missiles and ammunitions locally as much as possible. We are still so far away from having a credible Navy for a nation our size.

@Saif Bhai please keep me honest and tell me if I have missed anything.

Along with Chinese help, we also need to coordinate with Pakistan and Turkey regarding setting up armament, missiles and ammunitions production locally. Much more so than being done at present.

The days of Hasina limiting our armed forces to appease outsiders are over.

Your post is a very informative one. In my humble opinion, you have covered the entire thing in your post. Kudos to you.

 

[Bilal9]

Your post is a very informative one. In my humble opinion, you have covered the entire thing in your post. Kudos to you.

Thanks Bhai. You are way too kind.

 

[Krishna with Flute]

In addition, I am getting rather weary of bots pushing "China bad, India good" theories in propaganda fashion.

@Krishna with Flute - you need to respond to conversation and people asking you for thoughtful responses.

For example I asked you a question in another thread to respond to three questions - you never did.

This means you don't want to interact. In the forum, posts of no value and only pushing propaganda, help no one. Vigorous exchange of ideas are what attracts folks to a forum.

If all you want to do is push propaganda to bad mouth China, then you will have people ignore you. The quality of your posts leave much to be desired I am afraid.

I will definitely respond to each and every question. Wait for a while. I am busy with GST work.

 

[Saif]

Direct maritime route to China

There is much hype about the new direct seaborne route between Bangladesh's principal port, Chattogram to Ningbo, China (via Shanghai) and Shekou ports. The excitement is understandable for bulk cargo movers (shipping lines), as it involves a route that promises to cut down lead times by at least 1

thefinancialexpress.com.bd

Direct maritime route to China
Syed Mansur Hashim
Published :
Sep 20, 2024 22:04
Updated :
Sep 20, 2024 22:04

MV Kota Angoon sailed from the Port of Ningbo-Zhushan, one of the world's busiest seaports of China, on September 7 and reached Chattogram in nine days using the direct route

There is much hype about the new direct seaborne route between Bangladesh's principal port, Chattogram to Ningbo, China (via Shanghai) and Shekou ports. The excitement is understandable for bulk cargo movers (shipping lines), as it involves a route that promises to cut down lead times by at least 10 days and the fact that China remains the country's largest trading partner is hardly lost upon anyone, particularly importers. What Bangladesh will do to take advantage of the recent declaration by China to accord 100 per cent duty-free access to Bangladeshi products entering that market is of course, a matter of debate, but the opening of this route is something to talk about.

According to a report published recently in the Financial Express, "The first ship on the Bangladesh-China direct route, MV Kota Angoon V Kajon, carrying 935 TEUS containers arrived at the outer anchorage of Chattogram sea port on Monday. The ship was scheduled to dock at Jetty No. 13 of Chittagong Port today (Tuesday)." Pacific International Lines (PIL) which happens to be a global container shipping company has started this route because it makes sense to have a direct line of communication between the two nations. Cargo vessels will depart from Chattogram port and sail to Chinese ports. The advantage of this route is basically two fold, reduction of lead times and cost saving both of which are essential for international sea-borne trade.

Bangladesh is heavily dependent on import of not just raw materials but also industrial products from China, which literally produces everything under the sun. By international estimates, China manufactures 70 per cent of all industrial goods and by that calculation alone, the need to have a trade link that cuts down on shipping times will affect cost of import and export. As explained by the president of the Shipping Agent Association, "The new route will enhance our trade with China. Bangladesh imports machinery and raw materials for the garment manufacturing and export sector from China, while Bangladesh's export basket includes jute yarn, hides, and processed hair... Therefore operating a direct shipping route is considered quite promising."

Bangladesh is a global leader in the world of apparels. There has been much talk about export market diversification. Even when it comes to readymade garments (RMG) exports, the bulk of apparels made in Bangladesh are concentrated heavily in two main markets, the north American continent and Europe. Yet, China boasts the largest population on the planet with a vibrant domestic market. That is why the rest of the world is so interested in setting up industrial units there to sell to the Chinese consumers. Bangladesh hasn't truly explored that market yet.

Why not? The policy focus was never there. It is not just RMG sector that has not explored the most lucrative of markets but the focus hasn't been there for any of the other sectors either. There has been some talk at policy level recently about the potential of jute, jute based products and jute yarn. Where the rest of the world is hungry for biodegradable, environmentally friendly products made from eco-friendly materials, the country sits idle on the jute issue. Countless articles have been written in media over decades about why jute is central to the Bangladesh economy, and yet successive governments have only paid lip service to its development.

Bangladeshi farmers in certain districts of the country have traditionally grown jute but the lack of market for this 'golden fibre' was never really explored by policymakers. No research and development effort, no capital infusion into turning this raw material into countless fashion items and packaging material has been done as a matter of national priority. It is sad to see that when Adamjee Jute Mills was shut down, at least 10 new jute mills came into operation in neighbouring India. The message wasn't lost upon that country's policymakers that a golden opportunity had emerged. Bangladesh would no longer be a major competitor but merely a supplier of raw material henceforth.

There is much concern that this route will not get enough cargo on the two-way traffic and it will shut down somewhere down the line. If Bangladesh is to take advantage of the duty-free situation, it needs to expand its list of exportable items to the Chinese market. Diversification of the export basket has also long been discussed but not acted upon. Perhaps the conditions are now proper to start thinking out of the box about this once number one foreign exchange earner in Bangladesh and do something that will save both livelihoods of millions of farmers and earn serious foreign exchange by way of export of its products. It is time the policymakers came up with pragmatic plan for making the most of the jute's potential. The opportunities are there and those must be grabbed with open arms.​

 

[Saif]

BD to get zero-tariff facility from China for 100pc tariff lines from Dec 1

Bangladesh will enjoy zero-tariff treatment for 100 per cent tariff lines on exports to China as a least developed country (LDC) from December 01 this year. The Office of the Customs Tariff Commission of the State Council of China recently issued an announcement in this regard, a spokesperson of t

thefinancialexpress.com.bd

BD to get zero-tariff facility from China for 100pc tariff lines from Dec 1
FE Online Report
Published :
Sep 23, 2024 18:07
Updated :
Sep 23, 2024 18:07

Bangladesh will enjoy zero-tariff treatment for 100 per cent tariff lines on exports to China as a least developed country (LDC) from December 01 this year.

The Office of the Customs Tariff Commission of the State Council of China recently issued an announcement in this regard, a spokesperson of the Chinese Embassy said on Monday.

Currently, Bangladesh is getting duty-free facilities for 97 per cent of its tariff lines.

“On 5 September, 2024, in his keynote address at the opening ceremony of the Beijing Summit of the Forum on China-Africa Cooperation, President Xi Jinping of China announced that China will voluntarily and unilaterally open its market wider, and has decided to give all LDCs having diplomatic relations with China, including 33 countries in Africa, zero-tariff treatment for 100 percent tariff lines,” the spokesperson said, narrating the background of the decision.

This move makes China the first major developing country and first major economy to take such a step.

In order to expand unilateral opening up to LDCs and achieve common development, a zero preferential tariff rate will be applied to 100 per cent of tariff lines originating from LDCs that have diplomatic relations with China from 1 December, 2024, the announcement said.

For products subject to tariff quota management, the zero-tariff treatment only applies to the portion of products within the quota.

The portion of products exceeding the quota quantity shall still be subject to the original tax rate.​

 

[Saif]

China wants to make solar panels in Bangladesh

Chinese Foreign Minister Wang Yi says while meeting with Chief Adviser Muhammad Yunus in New York

www.thedailystar.net

China wants to make solar panels in Bangladesh

Photo: CA Office

China, the world's largest solar power producer, wants to invest in the production of solar panels in Bangladesh, Chinese Foreign Minister Wang Yi told Prof Muhammad Yunus, chief adviser to the interim government, on Wednesday.

Meeting on the sideline of the UN General Assembly in New York, he said China would attach importance to Prof Yunus's call to Chinese solar panel manufacturers to set up factories in Bangladesh.

The chief adviser had urged this when the Chinese ambassador to Bangladesh paid a courtesy call on him last month.

Yunus told Wang Yi that Chinese solar companies could invest in a bigger way in Bangladesh, which enjoys preferable market access to many developed nations.

Currently, China has a total of 609,921 megawatts of installed solar power plants, which is the highest across the globe

Currently, China has a total of 6,09,921 megawatts (MW) of installed solar power plants, which is the highest across the globe, according to data of International Renewable Energy Agency (IRENA).

In contrast, Bangladesh installed 603MW solar plants so far, according to data of Bangladesh Power Development Board.

Bangladesh entered its renewable energy era in 2017 with the launch of a 3MW solar power plant in Jamalpur's Sharishabari. But since then, the progress in increasing renewable energy installations has been very slow.

Though the country has plans to meet around 30 percent of its power demand from clean energy by 2030 and 40 percent by 2040, the capacity is still at around 3 percent or 893MW, including energy generated from wind and hydroelectric power plants.

In Mujib Climate Prosperity Plan 2022-2041, submitted in the Conference of Parties (COP26), the renewable energy capacity target for 2030 had been set at 6,000MW-16,000MW.

This means, the country will have to generate about 5,100MW of electricity from renewable sources in the next six years to attain even the lowest committed amount.

Currently, the country has a capacity to produce around 27,000 MW of electricity mostly from fossil fuel-based plants, a key contributor of global warming.

GREATER TRADE TIES

Wang Yi said Beijing would also encourage greater cooperation and partnership between businesses of the two nations to deepen trade and economic ties with Dhaka.

He said Bangladesh would benefit from a Chinese decision to provide zero tariff access to all goods from the least developed countries.

He said the Red Cross Society of China has sent a team of doctors to treat students and people who were grievously injured during the July-August mass uprising. Wang Yi also said China would welcome more students from Bangladesh.

Wang Yi described Prof Yunus as "an old friend of the Chinese people" and congratulated him for assuming leadership of the interim government.

"We have full confidence in you, that you will live up to the expectations of the people," he said, adding that Yunus would also unite the country.

Prof Yunus thanked China and lauded Chinese efforts to lift hundreds of millions of people out of poverty.

The chief adviser stressed on closer relations with China and opening "a new chapter" in the ties between the two nations.

He also urged other Chinese product manufacturers to relocate their factories to Bangladesh and engage in technological collaborations. "We will love to collaborate with Chinese companies. We have a lot of scope to work together," he said.

China Committed to Bilateral Relations

Meanwhile, Chinese Ambassador to Bangladesh Yao Wen said irrespective of the changes that have taken place inside Bangladesh, China's commitment to developing bilateral relations remains unchanged, reports news agency UNB.

China sincerely hopes that under the interim government, Bangladesh will carry out state reform, maintain political stability, advance economic development and improve people's livelihoods, he said.

To support Bangladesh's development, China decided to grant zero-tariff treatment on 100 percent of taxable items from Bangladesh, he told an event at a hotel in Dhaka on Wednesday marking the 75th anniversary of the founding of China.

This means China will substantially increase import of cereals, sugar, edible oil, rubber and rubber products, wood products, jute and jute products, paper and paper products, wool and cotton from Bangladesh from December 1, 2024, said Yao Wen.

China will also import Bangladeshi mangoes, he added.

To combat floods, China is about to provide rescue facilities and equipment to Bangladesh, he said.

Yao Wen said since the interim government came to office, Chinese enterprises have invested more than $85 million in Bangladesh.

He said China would organise programmes focusing political exchange, economic and trade cooperation, culture, education, tourism, sports, public health, youth, women, media and academic interactions for improving people-to-people ties.

"I expect the young people to devote themselves to China-Bangladesh cooperation, passing the torch of friendship from generation to generation," he said.

Commerce and Finance Adviser Dr Salehuddin Ahmed joined the event as chief guest while Foreign Secretary Md Jashim Uddin was also present.​

 

[Saif]

Shipping lines getting interested in Bangladesh-China route

Different shipping lines are showing interest in expanding their services to directly connect and quickly transport cargo between the Chattogram port in Bangladesh and those in China, the biggest source for local imports.

www.thedailystar.net

Shipping lines getting interested in Bangladesh-China route

At least 10 shipping lines are currently operating services between Bangladeshi and Chinese ports, either independently or through joint ventures. The photo was taken near Chattogram port recently. Photo: Rajib Raihan

Different shipping lines are showing interest in expanding their services to directly connect and quickly transport cargo between the Chattogram port in Bangladesh and those in China, the biggest source for local imports.

This year, two leading shipping lines have gone for the expansion and resumption of services while a new consortium introduced a direct service.

Bangladesh imported goods worth $17.8 billion from the world's second-largest economy in fiscal year (FY) 2022-23 while exporting goods worth $677 million, according to official data.

The previous year it was $20.87 billion and $683 million respectively. The trend over the years shows that bilateral trade is heavily tilted toward China.

Stakeholders said directly connecting with Chinese ports reduces transportation time by around 50 percent from what it takes when vessels make stopovers at transhipment ports in Singapore and Malaysia.

At least 10 shipping lines are currently operating several services between Bangladeshi and Chinese ports, either independently or through joint ventures.

In June this year, Mediterranean Shipping Company (MSC), a leading global container shipping line, resumed its Bengal service deploying six vessels.

The vessels connect Ningbo and Chattogram via Shanghai and Qingdao.

The MSC had introduced this service in 2022 including the transhipment ports of Singapore and Malaysia. The ships stopped calling on the Chinese ports after running for a year.

According to the MSC, the ships are now directly coming to the Chattogram port from the Chinese ports whereas on the return voyage, they are connecting Singapore.

AP Moller-Maersk (Maersk) launched a new ocean shipping service named SH3 to facilitate the growing trade volume between China and Bangladesh. It already had three other services -- SH1, SH2 and IA7.

However, only one trip was run. The service was halted for the time being as the volume of goods was too low following political turmoil in Bangladesh in July and August.

Maersk officials hope for the SH3 service to be resumed soon once the country's foreign trade returns to normalcy.

In another move, Singaporean shipping company Pacific International Lines (PIL) formed a consortium with Interasia Lines and SL Shipping to launch a service called China Chittagong Express (CCE) to directly connect the ports of Bangladesh and China.

On the first voyage, vessel Kota Anguun started off from the Ningbo port on August 31 and stopped at Shanghai and Shekou before reaching the Chattogram port on September 16.

It took nine days to travel from Shekou to Chattogram.

Ahsan Habib, head of operations at the PIL, said through this service, goods can be directly transported from China to Chattogram in nine to 15 days as the ships do not stop at the transhipment ports in Singapore or Malaysia.

Even on the return voyage, the ships would directly sail for Ningbo, he said.

China is a major source for the import of different types of items, including machineries, accessories, commodities as well as raw materials for readymade garment and other industries in Bangladesh.

Around 70 percent of the raw materials of the readymade garment industry are imported from China.

In August, a total of 1.14 lakh twenty-foot equivalent units (TEUs) of import-laden containers and over 8,000 TEUs of empty containers arrived at the Chattogram port.

Muntasir Rubayat, a director of Bangladesh Shipping Agents Association (BSAA), said it was difficult to estimate the exact volume of containerised imports coming directly from China.

A good number of these imports are transported via transhipment ports in Singapore and Malaysia, he said.

According to officials of different shipping lines, close to 60 percent of the total containerised imports bound for Bangladesh comes from China.

They said a good portion of these imports from China are now being transported through direct services offered by different shipping lines.

Data collected from shipping lines show that over 41,000 TEUs of import-laden containers arrived directly from China in August.

Nasir Uddin Chowdhury, chairman of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the direct shipping services between the two countries would significantly benefit garment exporters.

It will take less time for them to receive the imported raw materials, he said.

Since the export oriented RMG sector works under a timeframe, any sort of savings in time in the supply chain would help the sector become more competitive in the global market, he said.

Bangladesh Freight Forwarders Association (BAFFA) Vice President Kharul Alam Suzan said it usually takes at least a month or more for cargo from China to reach Chattogram via the transhipment ports of Singapore and Tanjung Pelepas, where goods often lie idle for more than a week due to congestion.

He, however, said since exports from Bangladesh to China were very low, the shipping services mostly rely on one-way trade.​

 

[Saif]

Chinese envoy holds meeting with BNP, Jamaat leaders in Ctg

Chinese Ambassador Yao Wen today held separate meetings with regional leaders of BNP and Jamaat-e-Islami in Chattogram

www.thedailystar.net

Chinese envoy holds meeting with BNP, Jamaat leaders in Ctg

Chinese Ambassador Yao Wen today held separate meetings with regional leaders of BNP and Jamaat-e-Islami in Chattogram.

Adviser to BNP Chairperson Golam Akbar Khandkar along with BNP's regional leaders met the Chinese ambassador while in another meeting Assistant Secretary General of Bangladesh Jamaat-e-Islami Muhammad Shahjahan along with his party's leaders met the envoy, a Chinese Embassy's press release said.

During the discussion, Ambassador Yao emphasised that the Communist Party of China (CPC) has long maintained friendly relations with all major political parties in Bangladesh.

He expressed China's willingness to further strengthen exchanges on governance under the new circumstances, enhance personnel training, and promote cooperation across various fields, advancing the Comprehensive Strategic Cooperative Partnership for the benefit of both the people.

The regional leaders of the two parties expressed their gratitude for the long-standing support provided by the CPC, the Chinese government and the Chinese people towards Bangladesh's national development, economic and social progress, and the well-being of its people.

They noted that Bangladesh is at a critical juncture of national reconstruction and requested continued Chinese support for Bangladesh's development.

They also expressed their desire to further strengthen party-to-party exchanges and friendly cooperation with the CPC.

Both sides exchanged views on the current situation in celebrating the 50th anniversary of the establishment of China-Bangladesh diplomatic relations in 2025, as well as the "Year of People-to-People Exchanges".​

 

[Saif]

Since the video also talks about China's relation with Bangladesh I am posting the link here.

S

[🇧🇩] Post in thread 'Indo-Bangla Relation: India's Regional Ambition, Geopolitical Reality, and Strategic Options For Bangladesh'

Oct 12, 2024

I found the video interesting so posting it here. Enjoy!!!

Trump is set to reignite India's powerful presence in Bangladesh, say Indian experts!

• Saif

• 

 

[Saif]

China deflation can help BD economic reflation with cheap imports

Deep deflation in China offers Bangladesh prospect of economic reflation with cheaper imports, particularly of capital goods. Bangladesh being heavily dependent on imports from the world's second-largest economy, lower import costs are believed to provide it some relief on the overall econom

thefinancialexpress.com.bd

China deflation can help BD economic reflation with cheap imports
Country's 28pc imports sourced from China
Jasim Uddin Haroon
Published :
Oct 14, 2024 00:18
Updated :
Oct 14, 2024 00:18

Deep deflation in China offers Bangladesh prospect of economic reflation with cheaper imports, particularly of capital goods.

Bangladesh being heavily dependent on imports from the world's second-largest economy, lower import costs are believed to provide it some relief on the overall economic front.

In May 2024 alone, Bangladesh sourced over 28 per cent of its imports from China, according to the Bangladesh Bureau of Statistics.

Additionally, China is Bangladesh's largest trading partner, accounting for 18.36 per cent of stake in the country's total trade in goods as of the May report.

Deflation typically occurs when supply exceeds demand-either through excess production or a drop in consumption. In China's case, industrial overcapacity and weak household demand have been identified as the primary causes of deflation.

According to the Financial Times, China's consumer price index (CPI) increased by just 0.4 per cent year on year in September, while the producer price index (PPI) fell 2.8 per cent during the same period.

Economists note that most of Bangladesh's industrial output, for both domestic and export markets, depends on imported inputs, mainly coming from China having mass production driven by technological as well as productive forces' expeditious advances.

As deflation makes raw materials and intermediate goods cheaper, local manufacturers in Bangladesh stand to benefit from it, as a blessing in disguise.

"Manufacturing enterprises will benefit from cheaper imports during this deflationary period, which may help boost production," says Dr Zahid Hussain, an independent economist currently working with Bangladesh's White Paper Preparation Committee on the economy.

"Chinese goods are currently very competitively priced. However, we should be cautious about bulk buying as prices could drop further," he adds, on a cautious note of optimism.

Deflation, however, can take time to stabilize. Japan, for example, experienced deflation starting in 1989, and it took nearly 30 years to recover. Similarly, the United States endured about eight years of economic struggle during the Great Depression in the 1930s.

In economic terms, deflation is often viewed as more harmful than inflation.

John Maynard Keynes, one of the most influential economists, famously remarked: "Inflation is unjust, and deflation is inexpedient."

Dr Hussain also believes that China's economic depression will positively impact Bangladesh's exports. "Deflation is expected to leave a significant positive impact on Bangladesh's economy, especially its exports."

Chairman of Policy Exchange of Bangladesh Dr M. Masrur Reaz told The Financial Express that the drop in prices of Chinese goods-around 18 per cent over the past three months-was good news for Bangladesh.

"This will reduce import costs for Bangladeshi entrepreneurs," he said.

Dr Masrur said while Bangladesh's currency had been depreciated in efforts to stabilize the foreign-exchange market, China's deflation could ease the pressure as Chinese-made products now become cheaper.

He suggests that local entrepreneurs should consider locking in supply contracts for the next year or two to secure lower prices for raw materials and intermediate goods. This strategy, he says, could help offset the effects of domestic inflation.

He mentions that many domestic goods in Bangladesh are produced using Chinese raw materials or intermediate goods, and this could help reduce the stubborn inflation in the future.​

 

[Saif]

BIISS seminar
Relations with China should be considered holistically
​

• Govt’s focus on defence and economic cooperation​
• Reevaluation of Chinese loan interest terms is necessary​

Foreign affairs adviser Md. Touhid Hossain addresses a seminar "Bangladesh-China Relations: A Future Outlook" jointly organised by Bangladesh Institute of International and Strategic Studies and Centre for China Studies with the help of the Chinese embassy in Dhaka on 14 October 2024 BSS

The future of relations with China should be viewed holistically, taking into account the post-revolutionary situation, in the context of the significant political change in the history of Bangladesh.

Bangladesh wants to put emphasis on defence and economic cooperation for the interests of the future of the relationship between the two countries.

Besides, it is also necessary to reevaluate the various conditions of Chinese loans taking into account the current financial crisis in the country.

Experts made such remarks in a discussion on the future of Bangladesh-China relations at a hotel in the capital on Monday.

Bangladesh Institute of International and Strategic Studies (BIISS) and Centre for China Studies (SIIS-DU) jointly organised the discussion with the help of the Chinese embassy in Dhaka.

Addressing the opening session of the seminar as the chief guest, foreign affairs adviser Md Touhid Hossain said that Bangladesh has witnessed the most significant political change in its history. As a result, the future of Bangladesh-China relations in the post-revolutionary context must be taken into consideration from a wider perspective.

Hinting that the interim government wants to continue defence cooperation between Bangladesh and China, Touhid Hossain said, defence is an important element of the relationship between the two countries.

He further said the course of Bangladesh and various other factors, especially in the post-revolution situation, may impact the relationship with China.

Political stability in Bangladesh and the changing context of regional and global politics are included among those factors.

Hinting that the interim government wants to continue defence cooperation between Bangladesh and China, Touhid Hossain said, defence is an important element of the relationship between the two countries.

He mentioned that China is an important supplier of arms to Bangladesh. China also trains members of the armed forces of Bangladesh. Bangladesh wants more defence cooperation from China to modernise the army in the future.

In his speech, the foreign adviser put emphasis on the removal of non-tariff barriers for Bangladeshi products in the Chinese market in order to eliminate the trade imbalance between the two countries.

It is important to reevaluate the Chinese loan conditions in the context of the current economic pressure in Bangladesh, he pointed out.

Speaking about the trade deficit between the two countries, Touhid said, “It would be better for us if it is possible to increase exports to China through Chinese investment in Bangladesh. Some projects are going on with the help of China and we hope to have an impact on the country’s economy.”

It would be better for us if it is possible to increase exports to China through Chinese investment in Bangladesh, Foreign affairs adviser Md Touhid Hossain.

Stating that China and others are helping on the Rohingya issue, the foreign adviser said, “Unfortunately, such initiatives have not yet brought any results. I think China has an influence over Myanmar and that is a reality. China should play a greater role in this matter so that the Rohingyas can return to their country with their rights and safety.”

Head of the National White Paper Drafting Committee and honorary fellow at Centre for Policy Dialogue (CPD), Debapriya Bhattacharya, also spoke at the event.

He said trade does not depend only on market facilities. Its expansion also depends on the process.

"That is why, we have to take into consideration the issue of non-tariff barriers for the sake of the future of relations in getting 100 per cent benefits for the Bangladeshi products in the Chinese market," Debapriya Bhattacharya.

Putting emphasis on bringing changes in the process of Chinese loans to Bangladesh, he said that if you look at Bangladesh’s foreign loans, you will see that about US $5.6 billion will go to China. It is about 10 per cent of Bangladesh’s total foreign debt. As a result, debt repayment has become a growing challenge for Bangladesh.

Debapriya further said Chinese debt includes supply debt, which has a shorter repayment period. The grace period is also less. Besides, the terms are stricter and commitment charges are higher. It should be considered if there are opportunities to bring changes in those in the future.

He pointed out that the Karnaphuli tunnel will not be financially sustainable unless there is proper Chinese investment in the designated specialised industrial zone for China in Anwara of Chattogram.

More transparency should be brought for the sake of future relations between the two countries, he argued.

Addressing the discussion, Chinese ambassador Yao Wen said Bangladesh has recently experienced a significant political change and is now at an important historical juncture. China, as an integrated strategic cooperative partner of Bangladesh, firmly supports the interim government in its efforts to reform the state, maintain law and order, promote economic development and improve people’s lives.

Chairman of the Bangladesh Institute of Strategic and International Studies' board of governors FM Gousal Azam Sarker presided over the event. Professor Yang Jiemian of Shanghai Institute for International Studies and BIISS director general Major General Iftekhar Anis also spoke.​

 

[Bilal9]

Since the video also talks about China's relation with Bangladesh I am posting the link here.

S

[🇧🇩] Post in thread 'Indo-Bangla Relation: India's Regional Ambition, Geopolitical Reality, and Strategic Options For Bangladesh'

Oct 12, 2024

I found the video interesting so posting it here. Enjoy!!!

Trump is set to reignite India's powerful presence in Bangladesh, say Indian experts!

• Saif

• 

I guess Indians looking to Sahib again, for him to come back and fix the Soda vending machine.

 

[Saif]

Govt takes first step to join China-led trade bloc

The commerce ministry on Monday sent a letter of consent to the foreign ministry, requesting Bangladesh’s entry into the China-led Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade pact.

www.thedailystar.net

Govt takes first step to join China-led trade bloc

The commerce ministry on Monday sent a letter of consent to the foreign ministry, requesting Bangladesh's entry into the China-led Regional Comprehensive Economic Partnership (RCEP), the world's largest trade pact.

It is the first formal step taken by Bangladesh to join the RCEP, which is a major trade agreement that includes trade in services, investment, economic and technical cooperation, and dispute settlement.

Bangladesh has taken the initiative to join the RCEP mainly because it will lose preferential trade benefits to markets that make up the Association of Southeast Asian Nations (Asean) group once it graduates from the list of least developed countries (LDCs) in 2026.

The 10 Asean nations -- namely Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam -- are potential markets for Bangladesh.

Moreover, the RCEP also includes five other countries that have signed the Asean Free Trade Agreement (FTA): China, Japan, South Korea, Australia and New Zealand.

These 15 countries within the RCEP account for 30 percent of global GDP, 31 percent of global foreign direct investment (FDI) and one-fourth of global trade.

"We have sent a letter citing our consent to join the RCEP," a senior officer of the commerce ministry said on condition of anonymity.

Earlier, the office of the chief adviser approved Bangladesh's participation in the RCEP.

The RCEP was formally launched in November 2020 and came into effect in January 2022 before opening up its platform in July of 2023 and allowing other countries to join.

Any developed or developing country as well as LDCs can join as members.

The commerce ministry has already completed the required assessment for joining the RCEP, according to a document from the commerce ministry.

Primarily, it is assessed that Bangladesh's export would increase by $3.26 billion and FDI by 3.36 percent.

The apparel industry will account for a significant portion of the exports while the demand for skilled and unskilled workers in the garment sector will rise by 18 percent, according to the commerce ministry document.

Overall, the country's GDP will increase by 0.26 percent if it joins the RCEP, the document said.

However, if competitiveness is not increased, the services, investment and e-commerce sectors will face numerous challenges.

Since Bangladesh is located in South Asia and is also a member of the Asean Regional Forum, the country will need to negotiate separately with member countries. However, it will also enjoy the benefit of geographical proximity.

As a result, Bangladesh will benefit from the global value chain, the document said.

Another commerce ministry official mentioned that a meeting would be held with Japan in Dhaka next month to initiate formal negotiations to sign an economic partnership agreement (EPA).

Bangladesh and Japan have already completed a joint feasibility study on the EPA.

However, formal negotiations were delayed due to the political transition in Bangladesh in August.

However, the commerce ministry official did not specifically say when the meeting with Japan would take place.

The official also said the commerce ministry has not taken any steps to start formal negotiations on a Comprehensive Economic Partnership Agreement (CEPA) with India.

Bangladesh and India completed a joint study on the CEPA more than two years ago. Both parties are now awaiting the formal launch of negotiations.

He also said that negotiations on a proposed FTA with China are expected to start in the near future.​