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

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

ড. ইউনূসকে নিতে বিশেষ বিমান পাঠাবে চীন, তীক্ষ্ণ দৃষ্টি মোদীর! (China intends to send a special plane to take Dr. Yunus to China)


 
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China keen to take Chief Adviser to Beijing in March
Raheed Ejaz
Dhaka
Published: 20 Jan 2025, 23: 14

1737679286615.webp

Muhammad Yunus File photo

Following the 5 August 2024 changeover due to the student-people uprising, China is keen to deepen the relations with Bangladesh. Beijing is interested in a summit meeting in continuation of bilateral meetings with the interim government. That is why China wants to take Chief Adviser Dr Muhammad Yunus to China in March this year, marking five decades of diplomatic relations between the two countries.

China has already invited Dr Muhammad Yunus to attend the Boao Forum For Asia (BFA), scheduled to be held in Beijing on 27-28 March, diplomatic sources said.

The Boao Forum for Asia is a nonprofit platform that hosts high-level forums for leaders from government, business and academia in Asia and other continents to share their vision on the most pressing issues in this region and the world at large.

Wishing not to be named, a high level source in the government Sunday evening told this correspondent that China has shown interest for a bilateral summit meeting with the Chief Adviser alongside attending the BFA conference during the visit to Beijing

Foreign ministry officials said foreign adviser Md Touhid Hossain would leave for China in a bilateral meeting on Monday afternoon. He will hold a bilateral meeting with China Foreign Minister Wang Yi in Beijing on Tuesday.

The two will discuss how the relations would move forward. The health sector could get importance in cooperation between the two countries in the coming days. Discussions may be held on setting up a friendship hospital in Bangladesh with the help of China for the first time, ensuring low-cost medical services for Bangladeshi patients in several provinces, including Kunming, as well as on signing several memorandums of understanding (MoUs) on special projects for the care and rehabilitation of injured people in Dhaka.

China wants to send chartered aircraft

The chief adviser has recently been invited to attend the 25-nation BFA summit in Beijing from 25-28 March. China is interested in organising a discussion between the country’s top leaders, including President Xi Jinping, and Bangladesh’s top leader on the sidelines of the forum meeting.

However, wishing not to be named, several foreign ministry officials think that there is uncertainty about the visit in March. State events are organised on 26 March due to Bangladesh’s Independence and National Day. Apart from this, it is also a matter of consideration, whether it is enough to organise a summit meeting just two months after the foreign adviser’s meeting.

At the same time, diplomats believe that it is imperative to move cautiously instead of getting close to any country hurriedly due to the tilted policies of the previous government.

A diplomatic source told this correspondent that the matter of sending a chartered plane from China to take Chief Adviser Muhammad Yunus to Beijing was also mentioned.

The source said the issue of the Chief Adviser’s visit to China may come up for discussion during the foreign affairs adviser’s visit to Beijing.

Bangladesh-China friendship hospital in discussion

Sources said that the issue of giving importance to the health sector in cooperation is expected to be discussed at the foreign minister-level meeting in Beijing Tuesday. Dhaka has proposed to Beijing to sign an MoU to set up a specialised medical and rehabilitation centre with financial and technical assistance from China, especially for the treatment and rehabilitation of those injured in the student uprising.

Sources further said that Bangladesh is interested in signing an MoU quickly to construct the first friendship hospital, funded by China, in Purbachal. Bangladesh wants the hospital to be run by skilled physicians and professionals from China.

Apart from this, Bangladesh wants China’s cooperation in identifying high-quality hospitals in Kunming and adjacent areas to ensure medical services for Bangladeshi patients.

China’s Ambassador to Bangladesh Yao Wen told Prothom Alo Sunday morning, “We agree in principle to establish a hospital in Bangladesh. We are now waiting for a detailed proposal from Bangladesh. We want to know what kind of hospital Bangladesh wants and where this hospital will be constructed.”

“We will move forward following a process after receiving a proposal from Bangladesh. We are interested in modernising Bangladesh’s health sector,” he added.

China still interested in Teesta project

The MoU on sustainable management of river water, signed between the two countries in 2016, is scheduled to be renewed during the foreign adviser’s visit. The agreement signed between the Bangladesh Water Development Board (BPDB) and Power China is considered an outline MoU. Discussions are underway between the two countries on the Teesta project in continuation of this MoU.

Speaking about the Teesta project, Yao Wen said, “We are interested in assisting Bangladesh in this project. Now it is Bangladesh that will have to decide how to implement it.”

Diplomatic sources said the Bangladesh side at the meeting in Beijing will raise the construction of China’s mega dam in upstream of the Brahmaputra River. The country has taken the initiative to construct a dam worth about USD 100 billion in Tibet to generate about 60,000 MW electricity. This has created doubts about the availability of water for downstream countries. India has already expressed concerns over the construction of the dam.

The Chinese ambassador met with adviser Touhid Hossain on Sunday morning. Later, speaking about the construction of the dam in Tibet, the ambassador said that the construction will not have any negative impact on the downstream countries.

Bangladesh focuses on reducing interest rates

In the foreign minister level bilateral meeting, Bangladesh will put stress on investment, trade and project financing. In addition to reducing the interest rate from 2 per cent to a reasonable level, Dhaka will seek the cancellation of the 0.5 per cent loan commitment fee.

The meeting will also discuss important projects, including the procurement of four ships as per the previous agreement, especially the projects for which financing is currently stalled. Dhaka will also seek China’s cooperation on the Rohingya issue.

Bangladesh will also urge China to stand by the Rohingyas in the UN Security Council. At the same time, Bangladesh expects more investment from China.

After 5 August, China has come forward with an investment of over USD 200 million. The country is also one of the major trading partners of Bangladesh. Dhaka will seek cooperation in free trade of goods and raw materials, including delayed payment.

Bangladesh will also seek duty-free and quota-free facilities for Bangladeshi products in the Chinese market for an additional three years after graduating from a low-income country.

Asked about the China visit, foreign adviser Md. Touhid Hossain told Prothom Alo, “There will be discussions on advancing cooperation between the two countries, keeping in mind the five-decade anniversary of the relations. Our priority will be economic and development cooperation.”

* The report, originally published in the print and online editions of Prothom Alo, has been rewritten in English by Shameem Reza​
 
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Bangladesh's trade deficit with China rises by over 1.0pc
Jasim Uddin Haroon
Published :
Jan 26, 2025 00:10
Updated :
Jan 26, 2025 00:10

1737850827987.webp


Bangladesh's trade deficit with China increased marginally by over 1.0 per cent to US$16.45 billion in the last fiscal year ending on June 30, compared to the same period a year earlier, according to the recently-released data from Bangladesh Bank.

During this period, Bangladesh imported goods worth $17.80 billion while exporting only $1.35 billion, resulting in a significant trade imbalance. Excluding services, the trade deficit stood at $16.28 billion in 2022-23 fiscal year.

China remains Bangladesh's largest trade partner, primarily supplying raw materials and semi-finished goods that are vital for Bangladesh's manufacturing industries. Among these goods ready-made garment (RMG) sector is key, which depends heavily on these imports to produce goods for both domestic consumption and export.

Economists argue that the trade deficit with China is not a cause for concern. They highlight that imports from China significantly contribute to Bangladesh's export-oriented industries, enhancing the country's export capabilities.

Dr. M. Masrur Reaz, chairman of Policy Exchange Bangladesh, a privately-owned think tank, noted that the trade deficit is a byproduct of China's cost-competitive goods dominating the Bangladeshi market. These include machinery essential for the RMG sector. "If imports from China grow, they positively impact Bangladesh's exports," Dr. Masrur said.

The rapid growth of Bangladesh's garment industry-employing around 5.0 million workers most of whom are women-has deepened trade relations with China.

As the world's second-largest apparel exporter after China, Bangladesh relies heavily on Chinese machinery and raw materials. Since 2018, China has been Bangladesh's largest trading partner, overtaking neighbouring India, now ranked second.

Chinese President Xi Jinping's Belt and Road Initiative (BRI) introduced in 2013 brought Bangladesh into the fold in 2016. During a state visit that year, President Xi pledged $40 billion for infrastructure projects under the BRI framework, cementing economic ties.

Dr. Zahid Hussain, another leading economist, emphasised the critical role of Chinese imports in supporting Bangladesh's growth, particularly in machinery and raw materials essential for export-driven and domestic industries.

"Most of our machinery and raw materials come from China," Dr. Hussain noted, adding that Chinese funding for BRI projects is more accessible than financing from multilateral organisations.

Industry insiders confirm the indispensability of Chinese raw materials for Bangladesh's competitive edge in international markets.

Syed Nazrul Islam, managing director of Well Dress, a subsidiary of Well Food Group, highlighted this dependency, saying "We can't afford not to buy from China; our entire supply chain would collapse."

He noted that that Chinese-made automatic sewing machines, widely used in factories, exemplify how imported technology drives Bangladesh's economic resilience.

President of Bangladesh Chamber of Industries (BCI) Anwar Ul Alam Chowdhury underscored the significance of Chinese imports in reducing production costs in the RMG sector. "We have no alternative to China," Mr. Chowdhury said, adding that Bangladesh also imports pharmaceuticals, cement, and chemicals from China at competitive prices.

Despite its trade imbalance with China, Bangladesh maintains trade surpluses with key Western markets, including the United Kingdom, the United States of America, and the European Union.

In fiscal year 2023-24, Bangladesh recorded a $3.76 billion trade surplus with the United Kingdom, $4.57 billion with the United States, and $18.57 billion with the EU's 27-member bloc.

Bangladesh's trade strategy effectively leverages Chinese raw materials to produce goods for export to these markets, contributing to its economic resilience and growth.​
 
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Dam on Brahmaputra
Dhaka airs concern, Beijing says lower riparians won't be affected

FE REPORT
Published :
Jan 27, 2025 01:14
Updated :
Jan 27, 2025 01:14

1737936755957.webp


Bangladesh expressed concern over the construction of a mega-dam by China on the Brahmaputra during bilateral talks in Beijing on January 21 and got assurances that lower riparians won't be affected.

Foreign Affairs Adviser Touhid Hossain, who led the Bangladesh team, disclosed Sunday this and other outcomes of the meeting, adding that China has assured that the construction of the dam will not affect the lower-riparian Bangladesh.

In December last year, the Chinese government sanctioned the development of a hydropower facility on the lower section of the Yarlung Zangbo River, which is the Tibetan name for the Brahmaputra.

The $137 billion mega-infrastructure project to build the largest dam in the world has raised concerns in downstream countries, including India and Bangladesh, over potential impacts on water flow.

Responding to a question he said that a comparative analysis on the foreign loans provided to Bangladesh showed that China's lending rate is not that much higher, rather the lending rate of many other development partners are higher than China's.

"So the issue cannot be pushed strongly but when we raised it, they said they will consider it," Mr Touhid told reporters.

Replying to another question he said that there was no discussion on Dr Yunus's visit to Beijing.

The foreign adviser said China is interested to help Bangladesh in building a big and modern hospital in Bangladesh.

"And we are looking for land in Purbachal Town are for this" he said, adding that China is interested to provide support for another tertiary-level hospital on a private-public-partnership basis.

During the bilateral meeting, Chinese Foreign Minister Wang Yi also requested Bangladesh to consider joining President Xi's three global initiatives, namely GDI, GSI and GCI, and in response Bangladesh conveyed intention to examine the proposals and to remain engaged with China in deliberations on the issues, the adviser said.

Both the countries also agreed to collaborate on each other's candidature in multilateral for a, including in the United Nations.

The bilateral talks concluded with the signing of the 'Implementation Plan of the MoU on Exchange of Hydrological Information Sharing of the Yaluzangbu-Jamuna River'.

Mr Touhid said the MoU on water-management cooperation could not be renewed as both sides intended to add some new clauses to the existing memorandum.

The Foreign Adviser also had a meeting with the Minister of International Department of Chinese Communist Party. During the meeting, they discussed Chinese-funded development projects in Bangladesh.

They also talked about the reform initiatives of the interim government in Bangladesh. The Chinese Minister reaffirmed China's continued support to the interim government and peaceful transition to democracy through a free, fair and participatory election.

Mr. Hossain, during his January 21-24 China trip, also held a meeting with the Chairman of China International Development Cooperation Agency (CIDCA) discussing bilateral economic-cooperation issues.​
 
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Dhaka-Beijing agree to renew MoU on sustainable water management after modifications: Touhid
Diplomatic Correspondent
Dhaka
Published: 26 Jan 2025, 23: 07

1737937433238.webp

Foreign Affairs Adviser Md Touhid HossainFile photo

Dhaka and Beijing signed a memorandum of understanding (MoU) on sustainable water management during the Chinese president’s visit to Bangladesh in 2016.

Both the countries have agreed to renew the MoU after some modifications, said foreign adviser Touhid Hossain.

The adviser on Sunday disclosed this in response to a question of a newsperson at a media conference at the foreign ministry this afternoon after his visit to China.

He said as both Dhaka and Beijing agreed to renew the bilateral MoU, both sides have been trying to find out what modifications could be made.

“We have shared our observations with Beijing, and they have shared theirs with us. Finalising the draft will take some time, but it will be completed. Some more issues will be added to the renewed deal. This is why it is taking time,” he said.

Touhid Hossain, however, confirmed that a MoU was signed on exchanging hydropower-related information on the Yaluzangbu-Jamuna River during his visit.

The adviser said during the talks he raised Dhaka’s “serious concerns” regarding a dam on the Brahmaputra, a trans-boundary river that originated in China and enters into Bangladesh through India. “We have also requested China to share the studies they are conducting on this matter with us. They ensured that the flow of water will not decrease because of them.”

Asked if they had any discussion about prospective Chinese assistance for the Teesta River Project, Touhid Hossain said, “There was no discussion on the Teesta”.

“If we want to have any discussion on this, that MoU (water management) will have to be signed first. This is why it will take some time,” he added.

When a newsperson asked him whether there was any discussion on the visit of Dr Yunus to China, he said, “Let me tell you the truth, there was no discussion on this. Because, we are not hurrying on this.”

The foreign adviser had an official visit to China on 20-24 January. This was Bangladesh’s first bilateral meeting with China after the interim government had assumed power.

The adviser also spoke about US President Donald Trump’s decision to cut aid.

He said this was “expected” and clarified that USAID’s temporary aid suspension is not specific to any particular country.

After assuming office, Donald Trump recently issued an executive order suspending US aid to all countries, except one or two, for 90 days to allow a review of the assistance programmes, a decision not targeting any specific nation.

Following the order, the United States Agency for International Development (USAID) directed an immediate suspension of funding for all ongoing projects and programs in Bangladesh, as in other countries.

In response to a question on the impact of US assistance to Rohingya people, who have taken shelter in Bangladesh, due to this decision, Touhid Hossain said that they were entering a new reality. There should not be any doubts about that. Everyone knew beforehand the new US president’s policies are different from the existing one’s.

He said they will have to watch how the situation pans out and find out how to protect the interests of Bangladesh as per the emerging situation.

News agency BSS adds: Touhid Hossain Sunday announced that China has decided to designate two to three hospitals in Kunming, the nearest Chinese city from Dhaka, for Bangladeshis, who face problems in obtaining Indian visas for medical treatments.

“We were looking for an alternative destination for medical treatment as visa problems have been persisting with India. We believe this is a viable alternative given the issues with Indian visas,” he told reporters while sharing the outcomes of his recent China visit.

The adviser said the deputy governor of Yunnan with Kunming being its capital traveled to Beijing to meet him and conveyed the decision to dedicate the hospitals for Bangladeshi patients.

“I requested them (Chinese authority) to simplify the visa procedure and reduce the visa fees for Bangladeshi treatment seekers,” Hossain said.

The adviser revealed that the Chinese government has agreed to construct a large public hospital on government-owned land in Purbachal on the outskirts of Dhaka.

“We will provide the land (for the purpose) as soon as possible,” he said adding in addition to the public hospital a plan was chalked up to establish a tertiary-level hospital under public-private partnership (PPP) with China.

Hossain was on an official tour to Beijing from January 20 to 24 at the invitation of his Chinese counterpart Wang Yi when he held a bilateral meeting with him and visited Shanghai to meet with the Chinese business community.

“We discussed all our bilateral matters, including development projects and trade and commerce,” said Hossain, adding that he requested Beijing to lower the interest rate on loans and extend the loan repayment period from 20 years to 30 years.

He said the Chinese foreign minister “assured me of extending the loan repayment period and promised to look into the request for a reduction in interest rates”.​
 
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