🇧🇩 China is a Time Tested Friend and a Strategic Partner of Bangladesh (2 Viewers)

[Saif]

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.​

 

[Saif]

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​

 

[Muji.Iqbal]

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

 

[Saif]

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.​

 

[Saif]

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

You are right in your observation. Sheikh Hasina put more emphasis on Indo-Bangla ties just because India helps her to stay in power. China, on the other hand, does not interfere in Bangladesh's domestic politics. Hasina wants India for political reason while she wants China for economic reason.

 

[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.​

 

[Bilal9]

 

[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.​

 

[Saif]

PM’s visit: China seeks comprehensive strategic cooperative partnership with Bangladesh

China aims to elevate its relationship with Bangladesh to a comprehensive strategic cooperative partnership during Prime Minister Sheikh Hasina's visit, focusing on infrastructure development and financial assistance.

en.prothomalo.com

PM's visit: China seeks comprehensive strategic cooperative partnership with Bangladesh
Raheed EjazDhaka
Updated: 03 Jul 2024, 09: 09

Prime Minister Sheikh Hasina shakes hand with Chinese President Xi Jinping in Johannesburg on 23 August, 2023File photo

Bangladesh and China elevated their bilateral relations to "strategic partnership" from trade and economic cooperation when Chinese President Xi Jinping visited Dhaka eight years ago.

Bangladesh also joined the country's Belt and Road Initiative (BRI), the main enterprise of China's foreign and strategic policies, at that time as well.

This time China is keen to elevate the relations to another level, to comprehensive strategic cooperative partnership, during the visit of Prime Minister Sheikh Hasina to Beijing in the second week of July.

This is likely to be reflected in the joint statement that would be issued after the formal meeting of the two sides during the visit of the prime minister.

Diplomatic sources said several years ago the government took a coordinated initiative to implement development infrastructures centering the Matarbari deep sea port after joining Japan's Initiative of BIG-B (The Bay of Bengal Industrial Growth Belt).

They further said in the same way the government is moving ahead with an initiative to a coordinated infrastructural development (CD) centering the deep sea port at Payra in the southern region of the country. Bangladesh seeks China to be the main partner in the implementation of the CD.

This issue will get special attention during the prime minister's visit to China, the diplomatic sources added.

A highly placed source in the government said Bangladesh's expectations in this regard have been conveyed to various levels of Beijing over the last month.

Apart from this, financial assistance to meet the budget deficit and financing new projects would be prioritised during Prime Minister Sheikh Hasina's visit to China, scheduled to begin from 8 July.

A delegation of China's EXIM Bank is currently visiting Bangladesh for last-minute discussions on proposed loans to meet the budget deficit and financing new projects, relevant government officials confirmed this correspondent.

Speaking about the preparations for the prime minister's visit to China, foreign secretary Masud Bin Momen said, "The discussion between the two sides is going on until now. Currently a delegation from China is visiting Bangladesh. We have been going through the matters regarding taking budget assistance from China alongside taking assistance through other processes."


From strategic partnership to comprehensive strategic partnership

The relation between the two countries was elevated to "strategic partnership" level when Chinese President Xi Jinping visited Dhaka in 2016. A memorandum of understanding (MoU) was also signed regarding Bangladesh's joining the Belt and Road Initiative.

At the same time, decisions were made about China's debt and financing several mega projects in Bangladesh.

This time China is interested to elevate the relations further. Generally the host country prepares the drafts of various government documents regarding these types of summits. Being the host country now, China has proposed to elevate the relations to "comprehensive strategic cooperative partnership" in the draft.

According to diplomatic sources, the Chinese Communist Party, through the prime minister's visit, is interested in strengthening bilateral relationships on the political front. Liu Jianchao, the international department head of the party, conveyed this message during his recent trip to Dhaka.

The two countries would celebrate the golden jubilee of diplomatic relations next year, and China is laying emphasis on extending connectivity at different levels marking the celebration. They expressed interest in trading visits among political leadership, women, youth, physically challenged, and at other layers of the society.

While talking to the media during his Dhaka trip, Liu Jianchao said, "We believe that government policy originates from the perspectives of political parties. This means, the communication between the political parties of the two countries is very helpful to know and understand the mutual relationship between the government and the people. This communication also plays a role in adopting the right policy for each other. This communication is important."

As a whole, a transition in Dhaka-Beijing relationship and close political ties would be reflected in the joint statement of two countries, said multiple senior diplomats.

Focus on China's inclusion in CD

After assuming the state power for another term, the government brought to light the issue of including China, or cooperation with China in coordinated development (CD) projects in the country's southern region, with Payra at its helm.

When asked in this regard, diplomatic sources mentioned the courtesy call of the Chinese envoy on prime minister in Dhaka on 8 April, the meeting between foreign secretary Masud Bin Momen and Chinese deputy foreign minister in Beijing on 3 June, and the meeting of Liu Jianchao with the prime minister in Dhaka on 24 June.

During all the meetings, the Chinese envoys expressed their sincere interest to cooperate in the development initiative in the southern region.

Chinese ambassador Yao Wen asked for suggestions regarding the future priorities of assistance during the courtesy call on prime minister Sheikh Hasina. Referring to that, the prime minister mentioned China investments centring the Payra deep sea port, according to a reliable source.

One week after that meeting the Chinese ambassador paid a spot visit to the Payra sea port and adjacent areas and talked to relevant officials to learn the ground scenario.

The diplomatic sources termed CPC minister Liu Jianchao's visit to Dhaka ahead of prime minister Sheikh Hasina's Beijing tour as significant. During the visit he stressed on strengthening political ties between the two countries on behalf of Beijing. He also tried to understand the expectations of Bangladesh from China during the visit.

It has been learnt that the prime minister discussed the future priorities of assistance in the meeting with the important CPC minister last month.

During the meeting, prime minister Sheikh Hasina highlighted the coordinated development plan of the government centring the Payra deep sea port. The prime minister also mentioned that Bangladesh wants China to be a part of the development works in the southern part of the country.

Asked about the coordinated development plan centring the Payra port, the Dhaka officials say the government is focused on developing a hub of regional connectivity centring the Matarbari deep sea port. At the same time, it has taken initiative to run the development programmes in the southern parts of the country keeping the Payra port at the core.

The Economic Relations Divisions (ERD) will take the initiative for infrastructural development in the southern parts. It is basically the future outline for that region. Different ministries will be submitting the proposals for their desired projects in the region to the ERD. After that a list of projects will be prepared based on the proposals submitted.

Speaking to Prothom Alo regarding the possibility of further progress in this regard during the prime minister's Beijing visit, an official said that Dhaka wants to include in the joint statement that China will be a part of the development works in the southern part of the country. The two sides are in negotiation over this.

Asked about this, security expert and Bangladesh Institute for Peace and Security Studies president Maj. Gen. (retd) ANM Muniruzzaman told Prothom Alo, "I think the proposal to engage China in the development initiative centring the Payra sea port is an effort to maintain balance. Bangladesh has engaged Japan, one of the main allies of the US, in the Matarbari project."

"There was indication of not engaging China in the Teesta project during the prime minister's visit to India. Therefore, engaging China with the Payra project means an effort to maintain balance by pleasing China," he added.

The security analyst further said, "It is also an effort to keep the door of financial assistance open by getting China involved in the development projects in Bangladesh."

* The report, originally published in the print and online editions of Prothom Alo, has been rewritten in English by Shameem Reza, Misbahul Haque and Ashish Basu​

 

[Muji.Iqbal]

Yes, China should help Bangladesh by building good universities and bringing economic prosperity to Bangladeshis so Bangladesh can help itself.

 

[Bilal9]

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.

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).

$20 Billion for just the SIDI projects is way too high. Such projects can be done in India (for example) for well under $10 Billion or so. Another scheme for corruption under Hasina. If money is to be given, it should go directly toward paying Chinese contractors by Chinese Govt. Bangladeshi officials should not have any chance to see any money change hands.

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.

Other than Dhaka Mass Rapid Transit Development Project (Line 2), the rest of them are Faaltu projects which will never see proper ROI. Instead of "improving" DMC, Chinese companies should set up new hospitals in Dhaka and other towns under BOPP arrangements, paid (again) directly by Chinese Govt. Bangladeshi administrators should never see the sign of any money.

MRT Line 2 was going to be funded by the Korean Companies, but they have supposedly backed out, it seems.

MRT Line 2 (Dhaka Metro Rail) - Wikipedia

en.wikipedia.org

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.

Exactly.

"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.

Indians should get the message (sooner rather than later) that the time for stealing water and screwing around with withholding water downstream to Bangladesh is over. When China gets involved and starts withholding water to India using their Dam (huge leverage for them against India) then shortsighted Indian Govt. will be forced to play things right.

Zangmu Dam - Wikipedia

en.wikipedia.org

Beautifully illustrated and described in detail in here,

On the wildest stretch of the Everest of rivers, China is preparing the mother of all mega dams

Beijing is turning its sights to one of the wildest and riskiest reaches of the Tibetan Plateau where it's making plans to build the world's most powerful hydropower plant.

www.abc.net.au

This topic is a source of much bed-wetting within Indian media and MEA circles. They however conveniently forget to mention how India has forever been withholding water illegally from Bangladesh.

The Chinese Threat to Lower Brahmaputra Riparians India and Bangladesh

The plan to divert the waters of Brahmaputra would affect over 140 million people who are dependent on the river.

thediplomat.com

 

[Saif]

Breakthrough likely in China support for Bangladesh’s forex reserve: envoy

The Chinese ambassador to Bangladesh, Yao Wen, on Thursday said that prime minister Sheikh Hasina’s forthcoming visit to China was expected to make a...

www.newagebd.net

Breakthrough likely in China support for Bangladesh's forex reserve: envoy
Staff Correspondent 04 July, 2024, 12:54

Chinese ambassador to Bangladesh Yao Wen addresses DCAB Talk organised by the Diplomatic Correspondents' Association of Bangladesh at the Press Club on Thursday, ahead of prime minister Sheikh Hasina's China visit which is scheduled to be held in July 8-11. | New Age photo.

The Chinese ambassador to Bangladesh, Yao Wen, on Thursday said that prime minister Sheikh Hasina's forthcoming visit to China was expected to make a breakthrough in Dhaka's new proposal for extending support for the country's foreign currency reserves.

Terming the PM's visit as a milestone in the bilateral relation between the two counties, he said that whatever China could do, they would do in supporting Bangladesh's development.

'It is a new proposal from Bangladesh, and we hope there will be a breakthrough in our cooperation in this regard,' said the Chinese envoy at the 'DCAB Talk' in Dhaka while responding to a question about Dhaka's proposal seeking Beijing's financial assistance to ease pressure on its foreign currency reserves besides loans for various development projects.

About China's role in repatriation of the Rohingyas to their homeland Myanmar, Yao Wen said that the repatriation process was suspended due to an escalating conflict in Myanmar and its Rakhine state in particular while China was working with all parties for a ceasefire.

'It is not easy to find a political settlement…We are relating all ethnic groups through our channel for a ceasefire,' he said.

Replying to a question about any development in the Teesta project as India is willing to support the same project, the diplomat said that that the River Teesta restoration project was on the territory of Bangladesh, and the country had the sovereign right to take decision about it.

'The Teesta river restoration project is truly on Bangladesh territory and it has the sovereign right to take a decision about it. And all the parties should respect it,' he said, adding that China would accept whatever decision Bangladesh takes about the Teesta project.

China is willing to implement the project and advanced with it at the invitation of Bangladesh, mentioned Yao Wen.

'As strategic cooperative partners, China-Bangladesh relationship is at best of all time and is also embracing tremendous opportunities for development,' the ambassador said.

He also said that the visit of the PM would surely inject vibrant impetus into the bilateral relations and cooperation in various fields, and promote new achievements in the strategic partnership of cooperation between the countries.

The Chinese envoy said that he did not find any tension between China and India over the Teesta project, but wanted to see that the project start very soon for the benefit of around 30 million people in the country's northern region.

During the China visit, Sheikh Hasina will meet Chinese leaders, sign a number of cooperation documents, and jointly announce major cooperation achievements, he mentioned.

The Diplomatic Correspondents Association, Bangladesh organised the event at the National Press Club ahead of the prime minister's China visit scheduled from July 8 to11.

The DCAB president Nurul Islam Hasib moderated the event where it general secretary Ashiqur Rahman Apu also spoke.

Addressing a press conference on her India visit from June 21 to 22, Sheikh Hasina said in Dhaka on June 25 that it would be easy for Bangladesh if the Teesta restoration project received support from India.

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

 

[Saif]

Bangladesh to seek $7b from China to boost trade in business summit during PM’s visit

Bangladesh will host a trade and investment summit in Beijing during prime minister Sheikh Hasina’s upcoming state visit to China....

www.newagebd.net

Bangladesh to seek $7b from China to boost trade in business summit during PM's visit
United News of Bangladesh . Dhaka 05 July, 2024, 12:11

Bangladesh will host a trade and investment summit in Beijing during prime minister Sheikh Hasina's upcoming state visit to China.

PM Hasina will inaugurate the trade summit aimed at boosting Chinese investment and find ways to reduce trade imbalance that now favours China, sources familiar with the development said this week.

Over 1,000 Chinese and Bangladeshi investors will join the summit in different business sessions to discuss opportunities of investment in Bangladesh.

During the visit, Dhaka is likely to seek a US$ 7 billion in loan to support trade sector, which will make easy opening of LC for import of goods from China, sources said.

The Ministry of Finance, Ministry of Commerce, Ministry of Foreign Affairs, Bangladesh Security and Exchange Commission, Bangladesh Investment Development Authorities, Bangladesh China Chamber of Commerce and Industry, and Bangladesh Embassy in Beijing ate jointly organising the trade summit.

Professor Shibli Rubayat Ul Islam, chairman of the BSEC, said this week that the summit will bring businesspeople of the two countries under an umbrella to know each other and find scopes of investment in Bangladesh.

He said that the PM would talk directly with the Chinese investors to encourage them to invest in Bangladesh.

Al Mamun Mridha, general secretary of BCCCI, said that Bangladesh had identified 20 potential sectors to attract Chinese investors. At the Beijing Trade and Investment Summit Bangladeshi businesses will be highlighted with specific business offers to Chinese investors.

He said that Bangladeshi businesses would offer to Chinese investors that invest in Bangladesh and get the advantage of exporting their products to the Chinese market at 98 per cent duty-free facilities.

Through this investment Bangladesh will be able to narrow the huge trade gap with China and the Chinese investors will get opportunities for low-cost production options here, Mamun pointed out.

He believed that some Chinese investors would shift their manufacturing industry to Bangladesh as the country (Bangladesh) is also a big market for Chinese products.

Mamun also said, 'Bangladesh will also seek US$7.0 billion fund support in the trade sector that will help to boost trade with China. This may be in Chinese currency Yuan, so that Bangladeshi businesses can open LC in Yuan,' he added.

Though China and Bangladesh agreed to start trade with the Yuan, Bangladesh was unable to do so, due to the lack of available Yuan. Bangladesh faces a huge trade gap with China. As a result, there is a shortage of Chinese currency for trading.

Bangladesh mainly imports from China industrial raw materials, capital machinery, and electrical products, which factories can be set up in Bangladesh.

Currently, Bangladesh imports around US $24 billion (according to Chinese customs data) annually while Bangladesh exports less than $1.0 billion.

Bangladesh will offer China to invest in ceramic, leather, pharmaceuticals, electric cars, high-end garnets, and household appliances.​