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

[Saif]

Chinese firm to invest $50m in Bepza EZ

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

www.thedailystar.net

Chinese firm to invest $50m in Bepza EZ

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

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

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

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

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

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

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

Among them, three have already started commercial operations.

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

 

[Saif]

China to provide 100 duty-free access of Bangladeshi exports

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

www.thedailystar.net

China to provide 100 duty-free access of Bangladeshi exports

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Govt urges China to reduce loan interest, extend repayment period

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

www.thedailystar.net

Govt urges China to reduce loan interest, extend repayment period

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

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

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

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

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

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

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

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

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

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

LOAN RELIEF TALKS WITH RUSSIA ON TOO

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

[Krishna with Flute]

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

 

[Saif]

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

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