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

[Saif]

Chinese delegation expresses interest in investing in EPZs and BEPZA EZ

A Chinese delegation from the Quanzhou Maritime Silk Road Industry and Commerce Association expressed their interest in investing in EPZs and the BEPZA Economic Zone (BEPZA EZ). The 13-member delegation led by Jinshan Xu, one of the senior members of the association and Chairman of QUNFENG Intelli

thefinancialexpress.com.bd

Chinese delegation expresses interest in investing in EPZs and BEPZA EZ
Published :
Jul 01, 2024 19:47
Updated :
Jul 01, 2024 19:47

A Chinese delegation from the Quanzhou Maritime Silk Road Industry and Commerce Association expressed their interest in investing in EPZs and the BEPZA Economic Zone (BEPZA EZ).

The 13-member delegation led by Jinshan Xu, one of the senior members of the association and Chairman of QUNFENG Intelligent Machinery Co. Ltd., today expressed interest while visiting the Executive Office of BEPZA in the city, according to a press release.

Mentionable, a delegation led by BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman, BSP, ndc, psc urged for investing in EPZs of Bangladesh in a seminar titled "Investment Opportunities in the Export Processing Zones and BEPZA Economic Zone of Bangladesh" held in Quanzhou City, Fujian Province, China on April 30, 2024.

In continuation of this initiative, the delegation is visiting Bangladesh aiming to explore the investment potential of EPZs and BEPZA EZ.

BEPZA Executive Chairman welcomed the delegation and thanked them for showing interest in investing in Bangladesh, particularly in EPZs.

He said that Bangladesh is one of the fastest-growing economies in the world. During independence in 1971, Bangladesh had no industry at all but now the country is the second largest garments exporter, he added.

Mentioning Bangladesh as an ideal destination for investment he said, despite some challenges, Bangladesh is still a better choice for investment.

BEPZA Executive Chairman expressed his sincere gratitude to Quanzhou Maritime Silk Road Industry and Commerce Association for assisting in organizing an investment promotion seminar in April this year.

Jinshan Xu said Bangladesh has a great investment opportunity.

He said, "We are some members of Quanzhou Maritime Silk Road Industry and Commerce Association visiting Bangladesh to explore the investment opportunity".

The country is developing very fast and attractive destinations for setting up new factories, he added.

Member (Investment Promotion) of BEPZA Md. Ashraful Kabir said BEPZA is the pioneer Investment Promotion Agency of Bangladesh.

The authority has been facilitating the investors of EPZs for 44 years with professionalism, sincerity and dedication. He requested the delegation to invest in EPZs and BEPZA EZ.

Executive Director (Investment Promotion- Addl. Charge) Fazlul Haque Mazumder briefed the delegation on the overall activities of BEPZA including operating procedures, facilities, incentives etc. through PowerPoint presentation.

Mentionable, the delegation visited Chattogram EPZ and BEPZA EZ on June 30, 2024, to know the operating procedure, infrastructural facilities, wage structure of workers, customs procedures, tariff of land and utilities etc.​

 

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[Saif]

PM’s visit to China: Dhaka to seek $20b fresh loans from Beijing

Bangladesh will seek fresh loans amounting to $20 billion during Prime Minister Sheikh Hasina’s upcoming visit to China, which Beijing hopes would be a “game changer” in the bilateral relationship.

www.thedailystar.net

PM's visit to China: Dhaka to seek $20b fresh loans from Beijing
Bangladesh China bilateral trade

Bangladesh will seek fresh loans amounting to $20 billion during Prime Minister Sheikh Hasina's upcoming visit to China, which Beijing hopes would be a "game changer" in the bilateral relationship.

Of the sum, $15 billion would be for infrastructure projects and $5 billion -- which would be disbursed in yuan -- would be to facilitate payments for imports from China, according to the officials involved in preparing the proposals.

"We have reached consensus on several aspects but are yet to finalise it -- we will finalise it by July 7," one of the officials told The Daily Star yesterday.

The foreign ministry yesterday held an inter-ministerial meeting for finalising the joint statement that will be adopted by Bangladesh and China during the PM's visit from July 8 to July 11.

The visit comes just two weeks after Hasina's first state visit to India after she was sworn in as the PM for a fourth straight term.

The trip to China, Bangladesh's largest trading partner, is viewed as a balancing act by Hasina, who hopes to be in the good books of two competing regional powers.

Bangladesh will seek Chinese support for the Southern Integrated Development Initiative (SIDI) centring the Payra Port in Patuakhali, according to finance ministry officials.

This will be an integrated development plan for the southern region involving projects on transport and communication, ICT, power and energy, logistics and a special economic zone.

SIDI will see the establishment of an electric vehicle plant, a hi-tech park and a logistic hub at a strategic location, said a finance ministry official.Japan is supporting the Moheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI) and the BIG-B Initiative (The Bay of Bengal Industrial Growth Belt).

"Similarly, Dhaka wants Beijing to support SIDI," said a foreign ministry official.

Bangladesh earlier sought a loan in Yuan worth $5 billion to facilitate importers to make payments for goods and services procured from China amid Bangladesh's strained dollar stockpile.

Bilateral trade between Bangladesh and China stands at $23 billion, with imports by Bangladesh accounting for almost the entire sum.

A team of Chinese Exim Bank yesterday met with officials of the Economic Relations Division, the finance ministry wing that negotiates foreign loans, to discuss the terms and conditions for the loan, The Daily Star has learnt from officials informed with the proceedings.

The other projects for which Dhaka will be seeking loans from China include: the Dhaka Mass Rapid Transit Development Project (Line 2), the Bhanga-Kuakata rail line, bridge over the Kocha river at Pirojpur, the renovation of Dhaka Medical College Hospital, Maheshkhali/Matarbari Bakhrabad 3rd parallel gas transmission pipeline.

An announcement on starting negotiations for a free trade agreement may also come up during the visit as Bangladesh is eager to boost exports to China to reduce the trade gap.

Beijing wants to upgrade the relationship with Dhaka to a "comprehensive strategic cooperative partnership" from "strategic partnership" that was declared during the visit of Chinese President Xi Jinping in 2016, according to officials involved with the proceedings.

Stakeholders, however, advised putting national interests at the centre of the negotiations.

Bangladesh wants to sign FTAs or other deals with China but it needs to negotiate efficiently to serve the national interests, said Rumana Islam, a commissioner of the Bangladesh Securities and Exchange Commission.

"We have a number of bilateral trade treaties, but mostly they protect the interests of the foreign investors. They don't speak much about Bangladesh's interests," she said at a roundtable on the future of China-Bangladesh relations organised by the Bangladesh Foundation for Regional Studies yesterday.

China can support Bangladesh in the development of state-of-the-art hospitals that are in high demand here, said Imtiaz Ahmed, executive director of the Centre for Alternatives.

"Several lakh Bangladeshis go abroad for treatment every year, a trend that could be reversed with Chinese investment in the health sector," he said.

There are opportunities for China, India and other countries to work on the Teesta project.

"It is important that the Teesta project implementation begins soon as 29 million people are suffering because of the water deficit in the Teesta. It is time for us to turn geopolitical conflicts into cooperation," Ahmed said at the event moderated by Shah Ali Farhad, a former special assistant to Hasina.​

 

[Saif]

PM's China visit arouses intense interest

Prime Minister Sheikh Hasina is scheduled to visit China from July 8 to 11. After her assumption of power for the fourth consecutive term, this will be her second bilateral visit. She has just ended her visit to India in the last week of June. Since she has been maintaining very warm ties wi

thefinancialexpress.com.bd

PM's China visit arouses intense interest
MIR MOSTAFIZUR RAHAMAN
Published :
Jul 03, 2024 21:34
Updated :
Jul 03, 2024 21:34

Prime Minister Sheikh Hasina is scheduled to visit China from July 8 to 11. After her assumption of power for the fourth consecutive term, this will be her second bilateral visit. She has just ended her visit to India in the last week of June.

Since she has been maintaining very warm ties with both the Asian giants, her upcoming China visit has obviously aroused interest both at home and abroad.

One of the main reasons for this intense interest is the historical rivalry between India and China.

Another reason is the outcome of her visit to India, where Bangladesh and India signed 10 MoUs and made a number of important announcements.

Though most of the deals were related to bilateral cooperation, the political opponents of Sheikh Hasina are particularly vocal against rail transit and the possible Indian involvement in Teesta river management project.

There was an understanding between the two countries on providing technical cooperation to the Teesta River water management project. It seems that Bangladesh has lost its hope as far as signing the water sharing deal is concerned. Against this backdrop Bangladesh PM's visit to Beijing is considered very crucial.

China has been a close ally of Bangladesh since its belated recognition of independent Bangladesh in 1975. Interestingly, the relationship rose to strategic level after Sheikh Hasina came to power in the second spell in 2008. China is now Bangladesh's biggest trade partner with the former exporting around 15 billion dollar to the latter annually. Bangladesh exports goods worth around 900 million dollar to China.

Naturally, this huge trade deficit between the two countries is a cause for concern. It is expected that China will take some steps to reduce the deficit. Chinese side has proposed to sign an FTA with Bangladesh as they said that it would help Bangladesh reduce the trade gap.

The next concern is the huge debt. Majority of the mega projects of Bangladesh are now being funded by China.

Bangladesh has long been pressing China for reducing the interest rate. After the Sri Lankan crisis, many here had expressed fear that Bangladesh might face same scenario. Though Bangladesh has not faced Sri Lanka-like situation, many still worry about the impact of the loans. So reduction of the lending rate is crucial to dispel such fear.

Bangladesh economy is under pressure due to its weak forex reserves. It sought Chinese support to check the erosion of its dwindling dollar stocks. Many feel that an announcement from China during the visit on providing a handsome amount to Bangladesh will exhibit China's sincerity to 'stand by Bangladesh' during crisis.

Another issue is Rohingya repatriation. China has strong influence over the Myanmar military government. Not only that, it is widely believed that the insurgents who are now fighting the Myanmar military government across the country are wooing China to get its blessings.

Under the circumstances, the popular perception in Bangladesh is that China has the capacity to convince both the Myanmar government and the opposition to take back the one million Rohingya refugees, who have emerged as a huge socio-economic burden on Bangladesh.

China's contribution to the infrastructure development is huge. But compared to that, its FDI in Bangladesh is still not that much significant.

So, China should also come forward strongly in investing in Bangladesh. One thing should also be noted that warm ties hinge on the sincerity from both sides. In the 'give and take' world of diplomacy, both sides should show the same kind of generosity.

It is alleged that many Chinese projects are facing bureaucratic hurdles despite the approval from the ECNEC. Bangladesh government should look into the matter to remove these impediments.​

 

[Saif]

China offers BD exclusive low-cost dev funding

China has agreed to slash interest rate on its concessional loans to Bangladesh in an exclusive offer of low-cost development funding, which may "significantly improve" the country's debt portfolio. The interest rate on the Chinese loans will be pared down to 1.0 per cent from the previous level o

thefinancialexpress.com.bd

China offers BD exclusive low-cost dev funding
Talks underway on $5b trade support in local currency
MIR MOSTAFIZUR RAHAMAN
Published :
Jul 04, 2024 00:03
Updated :
Jul 04, 2024 00:03

China has agreed to slash interest rate on its concessional loans to Bangladesh in an exclusive offer of low-cost development funding, which may "significantly improve" the country's debt portfolio.

The interest rate on the Chinese loans will be pared down to 1.0 per cent from the previous level of above 2.0 per cent, sources in the finance ministry said.

They said the Chinese side conveyed this major shift in their position during the recent visit of the chief of its development agency.

"To honour the longstanding friendship and to strengthen the economic cooperation between the two countries" the Chinese side confirmed that they would be considering making special adjustments to the interest rates and the repayment period of Chinese government concessional loan (GCL.) for Bangladesh, sources said.

As agreed, they said, 'such arrangements shall only be known to the two countries'.

According to the soft-loan offer, the annual interest rate is lowered to 1.0 per cent with the repayment period being 20 years and grace period 5 years.

In response to Bangladesh request on relaxed repayment period the Chinese side said the tenure could be extended to 30 years and grace period to 10 years but, in that case, the interest rate will be 2.0 per cent.

Economists believe this decision will be a major relief for Bangladesh, which has been implementing most of its megaprojects in infrastructure development with Chinese financing.

"This will improve our long-term debt portfolio significantly," economist Dr Abdur Razzaque told the FE when asked about the decision.

"This is definitely a very good deal for Bangladesh," he opines.

Earlier, Bangladesh also had requested China to provide RMB worth 5.0 billion US dollars for trade-facilitation support with an interest rate of 1.0 per cent.

The request was first made during a meeting between the Bangladesh state minister for commerce and his Chinese counterpart on the sidelines of the 13th WTO Ministerial Conference.

Recently, China said that they in principle agreed on this and requested Bangladesh to send a detailed list of projects for which the RMB will be spent, officials concerned told the FE correspondent.

Both the countries decided that 'direct communication could be made between ERD and CIDCA and a Technical Team could be formed to deal with the day-to-day implementation-related issues'.

Dhaka recently requested extending loan-availability period, grace period and loan-maturity period of Chinese government concessional loans citing difficulties under the current volatile world economic landscape.

Beijing was also told that the terms and conditions of other multilateral and bilateral development partners were more relaxed than China's.

Several MoUs were signed during the visit of Chinese President Xi Jinping to Bangladesh in 2016 on 27 investment projects worth about US$20 billion.

So far, loan agreements on 8 projects worth about US$ 7.80 billion have been signed, out of which $3.95 billion has already been disbursed, officials informed.

Beijing, however, responded that the Chinese assistance is very cost- effective and brings substantial benefits.

For getting the Chinese loan more easily, China suggested Bangladesh side to take necessary steps to ensure detailed and comprehensive feasibility study, land availability, and timely utility shifting to ensure timely and smooth implementation of the projects.

China also assured that steps would be taken by the Chinese side to expedite the approval procedure of the China-aided projects. Beijing "is ready to work closely with Bangladesh to ensure smooth implementation of projects".

In this connection, China mentioned that director general-level working mechanism had already been suggested.

While offering the cut-down rate on lending, China highlighted the continuous and longstanding economic, trade and development cooperation, and reaffirmed that this relationship would remain "rock solid with closer economic, investment and production-capacity cooperation in coming days", sources said.​