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

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China is Bangladesh’s most reliable partner to modernisation: Chinese envoy

Chinese Ambassador to Bangladesh Yao Wen has termed his country as a reliable partner and trusted friend of Bangladesh in its ongoing journey of modernisation. “China is Bangladesh’s most reliable partner and trusted friend on its path to modernization,” he said while

thefinancialexpress.com.bd

China is Bangladesh's most reliable partner to modernisation: Chinese envoy
BSS
Published :
Jun 04, 2024 20:10
Updated :
Jun 04, 2024 20:10

Chinese Ambassador to Bangladesh Yao Wen has termed his country as a reliable partner and trusted friend of Bangladesh in its ongoing journey of modernisation.

"China is Bangladesh's most reliable partner and trusted friend on its path to modernization," he said while speaking at a seminar in the capital on Monday evening, a Chinese embassy's press release said.

The Chinese Enterprises Association in Bangladesh (CEAB) and Bangladesh University of Engineering and Technology (BUET) jointly organized the seminar titled "Fostering Innovation Through Collaborative Research for Smart Bangladesh".

The envoy said Chinese enterprises have been involved in numerous major and complex infrastructure projects in Bangladesh, introducing many advanced and energy-saving technologies.

The Chinese ambassador encouraged CEAB and BUET to further enhance industry-research cooperation and launch more advanced energy-saving technologies, so as to benefit the people of Bangladesh.​

 

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Chinese Minister Liu Jianchao in Dhaka

Minister of the International Department of the Communist Party of China (CPC) Central Committee Liu Jianchao is now visiting Bangladesh to discuss issues of mutual interest between Bangladesh and China

www.thedailystar.net

Chinese Minister Liu Jianchao in Dhaka

Liu Jianchao. Photo: UNB

Minister of the International Department of the Communist Party of China (CPC) Central Committee Liu Jianchao is now visiting Bangladesh to discuss issues of mutual interest between Bangladesh and China.

He arrived in Dhaka yesterday (Saturday) on a four-day official visit, a senior official at the Ministry of Foreign Affairs told UNB.

The chinese minister will meet President Mohammed Shahabuddin, Prime Minister Sheikh Hasina and Foreign Minister Hasan Mahmud, said the official.

His meeting with the president will be held on Tuesday while meetings with the prime minister and the foreign minister are scheduled to be held separately on Monday.

The trip is seen as part of regular exchanges of high-level visits, but the forthcoming visit of Prime Minister Sheikh Hasina to China is likely to be discussed, MoFA sources said.

PM Hasina's visit to China in the second week of July was underscored during a meeting with Chinese Ambassador Yao Wen, who reiterated China's commitment to boosting investment in Bangladesh and enhancing bilateral relations.

Ambassador Yao emphasised the significance of the visit in promoting trade, investment, and cultural exchange, aligning with Bangladesh's aspirations for "Vision 2041" and the realisation of a "Smart Bangladesh."

"It will be another historical one. It will be a game-changer. It will open a new chapter," Ambassador Yao told reporters while responding to a question at a seminar recently about Hasina's forthcoming trip.

The ambassador made the remarks when a reporter sought to know about a date of PM Hasina's proposed visit next month.

"Let's wait and see," the envoy said.

Recently, Yao said Bangladesh and China should deepen their strategic partnership for cooperation and explore new growth points.

"China is willing to work with Bangladesh to continue exploring cooperation opportunities under the Global Development Initiative, Global Security Initiative and Global Civilisation Initiative," he said.

In particular, the ambassador said they were willing to promote the upgrading of industries and the digitalisation process in Bangladesh.

January last week, Chinese Communist Party's Vice Minister of the International Division Sun Haiyan visited Bangladesh and met Prime Minister Sheikh Hasina and other leaders.​

 

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But the question is will Bangladesh choose China over India, even though Bangladesh has a large border with India.

 

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But the question is will Bangladesh choose China over India, even though Bangladesh has a large border with India.

For political reason Hasina wants India but for monetary reason she wants China.

 

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Hasina likely to visit China in July 8-11

Foreign minister Hasan Mahmud said on Monday that Bangladesh prime minister Sheikh Hasina was likely to go to China on a bilateral visit between...

www.newagebd.net

Hasina likely to visit China in July 8-11
Staff Correspondent 24 June, 2024, 15:38

Bangladesh prime minister Sheikh Hasina.

Foreign minister Hasan Mahmud said on Monday that Bangladesh prime minister Sheikh Hasina was likely to go to China on a bilateral visit between July 8 and 11.

'We expect the forthcoming visit of the prime minister to China to significantly advance bilateral cooperation between the two countries,' he told reporters after a meeting with visiting Chinese minister Liu Jianchao at a city hotel.

The tentative schedule for the prime minister's China visit came a couple of days after her return from India following a two-day state visit amid a tug-of-war between New Delhi and Beijing over a mega development project on the river Teesta in Bangladesh.

Jianchao, minister of the international department of the Communist Party of China Central Committee, also called on prime minister Hasina at her office later in the day.

Hasan said that the Chinese minister's visit ahead of the prime minister's bilateral visit to China was very significant.

He said that they had sought the cooperation of China to begin the repatriation of Rohingya people sheltered in Bangladesh camps to their homeland, Myanmar.

'We have also sought China's cooperation in the inclusion of Bangladesh in the BRICS in either form of membership or partnership,' said the foreign minister, referring to the economic bloc involving Brazil, Russia, India, China, and South Africa.

Jianchao said that a number of agreements in various areas of bilateral cooperation were expected to be signed during the Bangladesh prime minister's forthcoming visit to China.

'We are looking forward to the visit of the Bangladesh prime minister in about two weeks' time,' said the Chinese leader, who arrived in Dhaka on Saturday on a four-day visit to discuss issues of mutual interest between Bangladesh and China.

He said that they had a lot of expectations, and he was sure that the two governments and their agencies would work out a general plan for cooperation between the two countries in the time to come.

Expressing China's enthusiasm for working with Bangladesh in its drive for Vision 2041 and also the goal of achieving a smart Bangladesh, he said that the two countries could work in the areas of infrastructure, agriculture, investment, manufacturing, and trade.

Mentioning China as Bangladesh's major trade partner, Hasan said they had also discussed ways to reduce the trade gap between Bangladesh and China.

'Our imports from China worth about $13 billion, whereas our exports to China worth less than $1 billion,' he said.

He said that he had called on the Chinese ministry for more Chinese investments for Bangladesh.

Responding to a question, Hasan said there was no discussion on the Teesta mega project during the meeting.

Beijing and New Delhi are already on a collision course after India's latest proposal to finance the Teesta river restoration and management project when China has already offered both financial and technical support for the same project.

Tension grew between the two countries as the matter was discussed during Sheikh Hasina's bilateral talks with her Indian counterpart Narendra Modi during her June 21–22 visit to New Delhi, her second trip to the country in 15 days.

Before Hasina's Delhi visit, India expressed its willingness to support the implementation of the proposed Teesta River Comprehensive Management and Restoration Plan in Bangladesh's north, a strategically important location for India where China has already completed a survey for a $1 billion project.​

 

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PM Hasina’s China visit: Talks to include 7 billion dollar loan

Prime Minister Sheikh Hasina's upcoming visit to China to discuss a 7 billion dollar loan and economic cooperation, including trade assistance and budget assistance, to address Bangladesh's financial needs.

en.prothomalo.com

PM Hasina's China visit: Talks to include 7 billion dollar loan
Raheed EjazDhaka
Updated: 23 Jun 2024, 20: 00

Prime minister Sheikh Hasina

After almost a decade, prime minister Sheikh Hasina is to pay a state visit to China in the second week of July. During formal talks with Prime Minister Li Qiang on 9 July, financial assistance to meet Bangladesh's budget deficit and funding of new projects will be given importance.

Various areas of economic cooperation will gain focus during the forthcoming visit. In the backdrop of contemporary circumstances, geopolitics is likely to feature is discussions between the two leaders. A source at a high level in the government informed Prothom Alo of the matter.

According to diplomatic sources, a significant aspect of this visit will be a Chinese loan of USD 7 billion (USD 700 crore), equal to around 50.40 billion yuan (5,040 crore yuan). Of this, China will provide the equivalent USD 5 billion under trade assistance and the equivalent of USD 2 billion under budget assistance in local currency as credit to Bangladesh.

Also, just as decision has been taken for transactions in taka and rupees with India, a decision may also be taken for transactions in taka and yuan with China. An MoU to this end is being prepared.

Preparation is on so far for 11 instruments, including seven MoUs, to be signed during the prime minister's Beijing visit. Significant among these are China's Global Development Initiative (GDI), trade assistance, investment protection, digital economy, blue economy, announcement of free trade agreement study as well as construction and renovation of several friendship bridges.

Bangladesh has sought credit assistance from several countries in order to tackle the dollar crunch and the diminishing foreign exchange reserves. China is on the list of these countries.

Foreign secretary Masud Bin Momen told Prothom Alo priority will be attached to trade and economy during the prime minister's visit. Discussions will focus on addressing the existing trade imbalance and areas of assistance. Talks are on with China about trade assistance and budget assistance. This will possibly be finalised during the visit.

Visit before the visit

Two weeks in advance of the prime minister's Beijing visit, China's Communist Party central committee's international department minister Liu Jianchao arrived in Dhaka on Saturday. During his four-day trip he is scheduled to meet prime minister Sheikh Hasina and foreign minister Hasan Mahmud. He will also meet with leaders of Awami League and other political parties.

Diplomatic sources say that the Dhaka visit of such an important leader of China's Communist Party before the prime minister's Beijing visit is significant. Relations between the two countries at a political level grew close particularly after 2016.

Liu Jianchao will apprise Dhaka of Beijing's views concerning the upcoming visit. He will also try to understand Bangladesh's views concerning the future of relations between the two countries, added the sources.

Main visit two days

Diplomatic sources further say that prime minister Sheikh Hasina is scheduled to visit China from 8 to 11 July. However, the main agenda of the trip will be limited to 9 and 10 July.

On 9 July official talks will be held between the two prime ministers. On 10 July prime minister Sheikh Hasina will hold talks with the Chinese president Xi Jinping. The prime minister is also scheduled to meet with the president of the Chinese parliament National People's Congress of China, Zhou Lusi.

Large loans in Chinese currency

Dhaka and Beijing diplomatic sources say, Bangladesh has sought credit assistance from several countries in order to tackle the dollar crunch and the diminishing foreign exchange reserves. China is on the list of these countries. A few months ago China expressed interest in providing loans in yuan. The country has already started international transactions in yuan with several countries.

Initially China wanted to provide a trade facilitation loan in local currency equivalent to around USD 5 billion. And Bangladesh wanted loan as budget assistance. Bangladesh reasoned that if the loan was taken as trade assistance, it would become a commercial loan. This may mean high interest and shorter repayment deadline. That could put pressure on the foreign debt situation. In consideration of the country's overall condition, low interest long term loans can be taken. That makes it more logical to use the loan as budget assistance rather than trade facilitation. Later discussions were held with China about budget assistance loans.

At the start of this month Bangladesh and Chinese officials discussed the credit issue. Finally China agreed to providing credit both as trade facilitation and budget assistance. This correspondent was told by several officials present at the talks in Beijing, that the loan may be given from China International Development Cooperation Agency (CIDCA) and the state-owned EXIM Bank.

Tariff-free facilities even after 2026

There is a huge trade deficit between Bangladesh and China. While China provides 98 per cent tariff-free facilities on Bangladesh products, Bangladesh's exports to that country has hardly increased. Last year Bangladesh exported products of around USD 700 million and imported goods of over USD 20 billion.

Bangladesh wants China's support for its development efforts. And China wants to consolidate its position among South Asian countries by contributing to the development process. So China is likely to raise the issues of India, Japan, the US and such like-minded countries during talks this time
Foreign secretary Masud Bin Momen said that the 98 per cent tariff-free facilities that China provides for Bangladeshi goods hardly makes any difference. It was also proposed that even after 2026 the tariff-free facilities should remain in place.

Transactions in local currency

Bangladesh's bilateral trade with China now exceeds USD 20 billion, almost all of which comprises imports by Bangladesh. Bangladesh has to spend huge amounts of dollars to import goods from China. The officials feel that if Bangladesh could use yuan for imports, this will be a big relief in this time of dollar crisis.

Foreign ministry officials have said that talks are on for trade transactions to be in taka-yuan as in the case of taka-rupee transactions with India. There are talks of an MoU to be signed in this regard between Bangladesh Bank and China's National Financial Regulatory Commission.

New projects

China's president Xi Jinping visited Dhaka in September 2016. During this historic visit, it was decided to implement 27 projects. Of these, 15 have been completed, six are underway and there is consideration of replacing the remaining six with new projects.

It has been learnt that Bangladesh raised some new projects for China's consideration at the foreign secretary level meeting between the two countries at the beginning of this month. It was pointed out to China that much delay is made in scrutinising the projects for which the feasibility of the projects is harmed.

Geopolitical discussions relevant

Bangladesh's prime minister is visiting Bangladesh at a time when much is happening at an international and regional level. After President Xi Jinping's Dhaka visit in 2016, ties between the two countries grew strong at a political level.

In this contest, according to diplomatic sources, it will be normal for the unstable situation in Rakhine, Myanmar, the Indo-Pacific, South China Sea, Taiwan and such issues to be raised in the discussions.

When their attention was drawn to talks at various levels between the two countries in recent times, several diplomats told this correspondent that China has raised the issues of the Indo-Pacific Strategy (IPS), as well as about the US and its allies. Even after Bangladesh declared its Indo-Pacific Outlook before prime minister Sheikh Hasina's Japan visit last year, Bangladesh held talks with China. China was not too pleased with the joint declaration during that trip. Later Bangladesh explained the matter and assuaged China's unease.

Diplomatic analysts feel that China is at present under pressure due to the Taiwan situation. This issue will be raised. Bangladesh as always followed the 'One China' policy. Bangladesh wants China's support for its development efforts. And China wants to consolidate its position among the South Asian countries by contributing to the development process. So China is likely to raise the issues of India, Japan, the US and such like-minded countries during talks this time.

When asked about the issue, Bangladesh former ambassador to China Munshi Faiz told Prothom Alo, the matter of economic cooperation in continuity of the past will gain priority during prime minister's China visit. Alongside bilateral relations, the matter of relations with India and geopolitical issues may emerge in the talks.

He further said in this regard we must advance forward, taking the sensitivity of all parties concerned. In consideration of national interests in the light of greater geopolitics, Bangladesh needs to explain to China that it gives due importance to the sensitivities and views of all countries.

* This report appeared in the print and online edition of Prothom Alo and has been rewritten for the English edition by Ayesha Kabir​

 

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China is more likely to develop Bangladesh than India could. Besides China is a Superpower country while India cannot even compete with China.

 

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Hasina’s visit may open FTA talks with China: Titu

Bangladesh is expecting a formal declaration of the beginning of a negotiation of a free trade agreement (FTA) with China during Prime Minister Sheikh Hasina’s visit to China next week, State Minister for Commerce Ahasanul Islam Titu said.

www.thedailystar.net

Hasina's visit may open FTA talks with China: Titu
A team from Exim Bank may visit Dhaka this week to discuss yuan-denominated loans

Photo: Facebook/Ahasanul Islam Titu

Bangladesh is expecting a formal declaration of the beginning of a negotiation of a free trade agreement (FTA) with China during Prime Minister Sheikh Hasina's visit to China next week, State Minister for Commerce Ahasanul Islam Titu said.

The commerce ministry has already sent a proposal to the foreign ministry to include the FTA issue as part of the agenda for discussion during the premier's four-day visit to China starting on July 8, he said.

The first round of talks for advancing the FTA between the two nations is yet to take place, but a joint feasibility study has already been conducted on the possible deal, Titu told The Daily Star by phone yesterday.

Bangladesh has been trying to sign trade deals with major partners, including China, the largest import source for the country, mainly to retain the duty benefit even after graduation from the least developed country (LDC) category.

"A team from the Chinese Exim Bank is coming to Dhaka today or tomorrow to discuss a $5 billion trade facility and this issue may also be discussed during the prime minister's visit to China," Titu said.

Under the $5 billion worth of loans to be disbursed in yuan, the local importers will be allowed to pay the import bills to China with yuan.

Being the second largest apparel exporter worldwide after China, Bangladesh heavily relies on China for its raw materials like fabrics and chemicals at competitive prices.

China is the single largest trading partner of Bangladesh now.

Bangladesh imports nearly $23 billion worth of raw materials, capital machinery, textile fabrics and chemicals, yarn, woven fabrics, garment articles and food items from China, according to the commerce ministry data.

Of the total annual import duty revenue of Bangladesh, one third comes from Chinese import duty. Bangladesh government earns more than Tk 25,000 crore or $2.14 billion as duty on import of Chinese goods in a year.

However, if Bangladesh graduates to a developing nation from the LDC in November 2026, the country will not be able to collect this big amount of revenue as import duty from Chinese goods. Bangladesh will have to liberalise its tariff structure for other countries as a developing nation.

China signed 22 FTAs with 29 countries, including nations like Mauritius and Cambodia.

Chinese investors and entrepreneurs are interested to sign the FTA with Bangladesh mainly for two reasons. The primary reason is that the Chinese entrepreneurs want to relocate their old factories and other industries to Bangladesh and want to re-export goods from China under a liberal duty structure.

Bangladesh cannot utilise the Chinese trade facility of 98 percent duty privilege because of not having diversified export products.

Of the total annual exports of Bangladesh, over 84 percent are garment items while China, the largest apparel supplier in the world, imports garment items worth only $10 billion a year.​