Skip to main content

An all weather friend? Chinese investment in Bangladesh reach seven billion dollars

By Arafat Islam Joy*  
Bangladesh and China have enjoyed friendly relations since establishing diplomatic ties in January 1976. Since then, associations between China and Bangladesh have risen exponentially. Bilateral ties between the two countries started solidifying, identifying each other’s interests and priorities. The relationship has undergone a tremendous transformation to the extent that China is now considered by many in Bangladesh as an ‘all-weather friend.’ 
During the past five years, Sino-Bangladesh ties have attracted a lot of attention as they show a dynamic and changing cooperation. Without sharing state borders, these two countries have developed solid relations and partnerships in every aspect and every field of development. Also, regular high-level bilateral talks and visits between the two countries have strengthened the relationship. Following this political culture, Prime Minister Sheikh Hasina visited China on a three-day bilateral visit.

PM’s China visit

At the invitation of Premier Li Qiang of the People’s Republic of China, Prime Minister Sheikh Hasina of Bangladesh paid an official visit to China from 8 to 10 July. This is Prime Minister Hasina’s fifth visit to China and her first visit after being re-elected in January. The primary goals of this visit were to strengthen cooperation in investment, trade, and financial support. 
During the visit, Hasina was given a warm welcome. On her arrival at the Great Hall of the People, the prime minister was received by the Chinese premier. She held meetings with the top leaders, including Chinese Premier Li Qiang, Chinese President Xi Jinping, and Jin Liqun, President of the Asian Infrastructure Investment Bank. 
Leaders of the two countries agreed to stay committed to the Five Principles of Peaceful Coexistence, carry forward the long-standing friendship, foster greater synergy between development strategies of the two countries, advance the Belt and Road cooperation, and elevate the bilateral relationship to a comprehensive strategic cooperative partnership. The two sides had in-depth exchanges of views on bilateral relations and international and regional issues of mutual interest and reached extensive consensus.

Outcome of PM’s visit

Building bridges with China is one of Bangladesh's principal foreign policy priorities. This was reaffirmed with Bangladesh Prime Minister’s visit to China. During her visit, various bilateral issues were discussed with the Chinese leadership. Economic issues dominated the agenda, but they also discussed the Rohingya issue, business, trade and commerce, investments, and bilateral relations alongside various regional and international matters.
The immediate outcome of the visit was signing some agreements between the two governments, primarily stressing strengthening economic cooperation between the two countries. Bangladesh and China signed 21 instruments, including three renewed Memorandums of Understanding (MoUs), and announced seven additional projects following a delegation-level bilateral meeting between the Bangladesh prime minister and her Chinese counterpart at the Great Hall of the People.
Among them are significant instruments of cooperation in the economic and banking sector, trade and investment, digital economy, infrastructure development, assistance in disaster management, construction of 6th and 9th Bangladesh-China friendship bridges, export of agricultural products from Bangladesh, and people-to-people connectivity. Regarding defense cooperation, the two sides agreed to strengthen exchanges at all levels and between various armed forces and departments and deepen practical defense cooperation. 
From an economic point of view, this visit was essential for Bangladesh. Over the past decade, China has become one of Bangladesh's development partners through massive investment. The development speed will increase if this relationship between Bangladesh and China strengthens. Currently, Chinese investment in Bangladesh is about 7 billion dollars. 
China also offered Bangladesh one billion Yuan (about $140 million) as economic assistance. Along with this, Beijing said it attaches utmost importance to its relationship with Dhaka and assured Bangladesh of continued support for its development journey.
Again, the Chinese president said during the bilateral meeting with Hasina that China will help Bangladesh economically in four ways: grants, interest-free loans, concessional loans, and commercial loans. The two sides agreed to enhance cooperation in financial regulation and encouraged increased use of local currency settlement in bilateral trade. 
The Bangladesh side welcomed Chinese banks to establish branches in Bangladesh and vice versa. The Chinese side has also supported continuing the zero-tariff treatment on 98 percent of taxable items in Bangladesh for a transitional period beyond 2026, when Bangladesh will graduate from LDC status.
Currently, China is Bangladesh's single largest trading partner. According to the Ministry of Commerce, bilateral trade with China is about 24 billion dollars. In the fiscal year 2022-23, Bangladesh exported goods worth $677 million to China and imported goods worth $22.90 billion from China. 
China is Bangladesh's single largest trading partner. According to the Ministry of Commerce, bilateral trade with China is $24 billion
The prime minister told Chinese businessmen in Beijing, 'Now is the right time to invest in Bangladesh.' The Prime Minister also highlighted the investment opportunities in Bangladesh and the activities undertaken by the government in this regard. 
Notably, some agreements were also signed between the two countries' private sectors. Multiple Bangladeshi and Chinese companies signed 16 Memorandums of Understanding (MoU), four of which will bring $490 million to Bangladesh as investments. The MoUs were signed during a summit titled “The Rise of Bengal Tiger: Summit on Trade, Business and Investment Opportunities Between Bangladesh and China", where it was agreed that the Chinese companies would invest in Bangladesh's textile, solar power, fintech, and technology sectors. 

Way forward 

China understands and sympathizes with the tremendous costs that Bangladesh has borne regarding the Rohingya issue. China has a massive influence in Myanmar, and China will stand by Bangladesh in resolving the Rohingya crisis – a message conveyed to Chinese diplomats ahead of the Prime Minister's visit to China. 
It can be assumed that there was a detailed discussion about this during the visit. Not only Rohingya repatriation, but Bangladesh can also seek help from China for the vast amount of money they need to support them in the future. It is evident that Bangladesh has taken a step forward in the path of good relations through this visit of the Prime Minister.
China stands ready to take this visit as an opportunity further to deepen political mutual trust between the two countries, strengthen the synergy of development strategies, consolidate traditional friendship, and work together to realize the Chinese Dream of National Rejuvenation and Bangladesh’s “Vision 2041”. 
The two sides also decided to take the opportunity to celebrate the 50th anniversary of establishing China-Bangladesh diplomatic relations in 2025 to plan together for the future development of bilateral ties and take the China-Bangladesh relationship to another new height.
---
*Dhaka-based researcher and freelance columnist

Comments

TRENDING

Loktantra Bachao Abhiyan raises concerns over Jharkhand Adivasis' plight in Assam, BJP policies

By Our Representative  The Loktantra Bachao Abhiyan (Save Democracy Campaign) has issued a pressing call to protect Adivasi rights in Jharkhand, highlighting serious concerns over the treatment of Jharkhandi Adivasis in Assam. During a press conference in Ranchi on November 9, representatives from Assam, Chhattisgarh, and Madhya Pradesh criticized the current approach of BJP-led governments in these states, arguing it has exacerbated Adivasi struggles for rights, land, and cultural preservation.

Promoting love or instilling hate and fear: Why is RSS seeking a meeting with Rahul Gandhi?

By Ram Puniyani*  India's anti-colonial struggle was marked by a diverse range of social movements, one of the most significant being Hindu-Muslim unity and the emergence of a unified Indian identity among people of all religions. The nationalist, anti-colonial movement championed this unity, best embodied by Mahatma Gandhi, who ultimately gave his life for this cause. Gandhi once wrote, “The union that we want is not a patched-up thing but a union of hearts... Swaraj (self-rule) for India must be an impossible dream without an indissoluble union between the Hindus and Muslims of India. It must not be a mere truce... It must be a partnership between equals, each respecting the religion of the other.”

A Marxist intellectual who dwelt into complex areas of the Indian socio-political landscape

By Harsh Thakor*  Professor Manoranjan Mohanty has been a dedicated advocate for human rights over five decades. His work as a scholar and activist has supported revolutionary democratic movements, navigating complex areas of the Indian socio-political landscape. His balanced, non-partisan approach to human rights and social justice has made his books essential resources for advocates of democracy.

Four J&K MLAs visit Wular lake, pledge support to fisher community, environmental conservation

By Shamim Ahmed*   In a historic meeting that highlighted both environmental and social concerns, four Members of the Legislative Assembly (MLAs) visited Wular Lake to meet with the fisherfolk community, signaling a significant step in addressing their longstanding issues. This gathering, organized with the support of dedicated advocates, marks a strengthening of efforts to both safeguard the lake’s ecosystem and support the community’s welfare.

Supreme Court’s dismissal of PIL on Covid vaccine safety is counter to known science and mathematics

By Bhaskaran Raman*  On 14 Oct 2024, the Supreme Court of India dismissed a Public Interest Litigation (PIL) on the side-effects of the Covid vaccine. In 2021, the world saw the rollout of various Covid vaccine candidates. In India, Bharat Biotech’s Covaxin and Serum Institute of India’s Covishield were rolled out. Covishield was nothing but Oxford’s AstraZeneca relabelled in India. The importance of open-minded and scientific probe of Covid vaccine safety In 2020/2021, all Covid vaccines were authorized for emergency use, which meant that the necessary efficacy and safety follow-up was incomplete at that time. The originally approved trials – called randomised controlled trials (RCT) had a “vaccine” group and a “placebo” group for comparison. Such experimental comparison/control is the cornerstone of the scientific method – which even children learn in photosynthesis experiments in class-1. The vaccine trials were scheduled to conclude in late 2022/early 2023. For instance, Covax...

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah  The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor*  Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad*  On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya.