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

राजस्थान, मध्यप्रदेश, पश्चिम बंगाल, झारखंड और केरल फिसड्डी: जल जीवन मिशन के लक्ष्य को पाने समन्वित प्रयास जरूरी

- राज कुमार सिन्हा* जल संसाधन से जुड़ी स्थायी समिति ने वर्तमान लोकसभा सत्र में पेश रिपोर्ट में बताया है कि "नल से जल" मिशन में राजस्थान, मध्यप्रदेश, पश्चिम बंगाल, झारखंड और केरल फिसड्डी साबित हुए हैं। जबकि देश के 11 राज्यों में शत-प्रतिशत ग्रामीणों को नल से जल आपूर्ति शुरू कर दी गई है। रिपोर्ट में समिति ने केंद्र सरकार को सिफारिश की है कि मिशन पुरा करने में राज्य सरकारों की समस्याओं पर गौर किया जाए।

Beyond his riding skill, Karl Umrigar was admired for his radiance, sportsmanship, and affability

By Harsh Thakor* Karl Umrigar's name remains etched in the annals of Indian horse racing, a testament to a talent tragically cut short. An accident on the racetrack at the tender age of nineteen robbed India of a rider on the cusp of greatness. Had he survived, there's little doubt he would have ascended to international stature, possibly becoming the greatest Indian jockey ever. Even 46 years after his death, his name shines brightly, reminiscent of an inextinguishable star. His cousin, Pesi Shroff, himself blossomed into one of the most celebrated jockeys in Indian horse racing.

Aurangzeb’s last will recorded by his Maulvi: Allah shouldn't make anyone emperor

By Mohan Guruswamy Aurangzeb’s grave is a simple slab open to the sky lying along the roadside at Khuldabad near Aurangabad. I once stopped by to marvel at the tomb of an Emperor of India whose empire was as large as Ashoka the Great's. It was only post 1857 when Victoria's domain exceeded this. The epitaph reads: "Az tila o nuqreh gar saazand gumbad aghniyaa! Bar mazaar e ghareebaan gumbad e gardun bas ast." (The rich may well construct domes of gold and silver on their graves. For the poor folks like me, the sky is enough to shelter my grave) The modest tomb of Aurangzeb is perhaps the least recognised legacies of the Mughal Emperor who ruled the land for fifty eventful years. He was not a builder having expended his long tenure in war and conquest. Towards the end of his reign and life, he realised the futility of it all. He wrote: "Allah should not make anyone an emperor. The most unfortunate person is he who becomes one." Aurangzeb’s last will was re...

How the slogan Jai Bhim gained momentum as movement of popularity and revolution

By Dr Kapilendra Das* India is an incomprehensible plural country loaded with diversities of religions, castes, cultures, languages, dialects, tribes, societies, costumes, etc. The Indians have good manners/etiquette (decent social conduct, gesture, courtesy, politeness) that build healthy relationships and take them ahead to life. In many parts of India, in many situations, and on formal occasions, it is common for people of India to express and exchange respect, greetings, and salutation for which we people usually use words and phrases like- Namaskar, Namaste, Pranam, Ram Ram, Jai Ram ji, Jai Sriram, Good morning, shubha sakal, Radhe Radhe, Jai Bajarangabali, Jai Gopal, Jai Jai, Supravat, Good night, Shuvaratri, Jai Bhole, Salaam walekam, Walekam salaam, Radhaswami, Namo Buddhaya, Jai Bhim, Hello, and so on. A soft attitude always creates strong relationships. A relationship should not depend only on spoken words. They should rely on understanding the unspoken feeling too. So w...

PUCL files complaint with SC against Gujarat police, municipal authorities for 'unlawful' demolitions, custodial 'violence'

By A Representative The People's Union for Civil Liberties (PUCL) has lodged a formal complaint with the Chief Justice of India, urging the Supreme Court to initiate suo-moto contempt proceedings against the police and municipal authorities in Ahmedabad, Gujarat. The complaint alleges that these officials have engaged in unlawful demolitions and custodial violence, in direct violation of a Supreme Court order issued in November 2024.

Incarcerated for 2,424 days, Sudhir Dhawale combines Ambedkarism with Marxism

By Harsh Thakor One of those who faced incarceration both under Congress and BJP rule, Sudhir Dhawale was arrested on June 6, 2018, one of the first six among the 16 people held in what became known as the Elgar Parishad case. After spending 2,424 days in incarceration, he became the ninth to be released from jail—alongside Rona Wilson, who walked free with him on January 24. The Bombay High Court granted them bail, citing the prolonged imprisonment without trial as a key factor. I will always remember the moments we spent together in Mumbai between 1998 and 2006, during public meetings and protests across a wide range of issues. Sudhir was unwavering in his commitment to Maoism, upholding the torch of B.R. Ambedkar, and resisting Brahmanical fascism. He sought to bridge the philosophies of Marxism and Ambedkarism. With boundless energy, he waved the banner of liberation, becoming the backbone of the revolutionary democratic centre in Mumbai and Maharashtra. He dedicated himself ...

Censor Board's bullying delays 'Phule': A blow to India's democratic spirit

By Vidya Bhushan Rawat* A film based on the life and legacy of Jyotiba Phule and Savitribai Phule was expected to release today. Instead, its release has been pushed to the last week of April. The reason? Protests by self-proclaimed guardians of caste pride—certain Brahmin groups—and forced edits demanded by a thoroughly discredited Censor Board.

State Human Rights Commission directs authorities to uphold environmental rights in Vadodara's Vishwamitri River Project

By A Representative The Gujarat State Human Rights Commission (GSHRC) has ordered state and Vadodara municipal authorities to strictly comply with environmental and human rights safeguards during the Vishwamitri River Rejuvenation Project, stressing that the river’s degradation disproportionately affects marginalized communities and violates citizens’ rights to a healthy environment. The Commission mandated an immediate halt to ecologically destructive practices, rehabilitation of affected communities, transparent adherence to National Green Tribunal (NGT) orders, and public consultations with experts and residents. The order follows the Concerned Citizens of Vadodara coalition—environmentalists, ecologists, and urban planners—submitting a detailed letter to authorities, amplifying calls for accountability. The group warned that current plans to “re-section” and “desilt” the river contradict the NGT’s 2021 Vishwamitri River Action Plan, which prioritizes floodpla...

CPM’s evaluation of BJP reflects its political character and its reluctance to take on battle against neo-fascism

By Harsh Thakor* A controversial debate has emerged in the revolutionary camp regarding the Communist Party of India (Marxist)'s categorization of the Bharatiya Janata Party. Many Communists criticize the CPM’s reluctance to label the BJP as a fascist party and India as a fascist state. Various factors must be considered to arrive at an accurate assessment. Understanding the original meaning and historical development of fascism is essential, as well as analyzing how it manifests in the present global and national context.

Haven't done a good deed, inner soul is cursing me as sinner: Aurangzeb's last 'will'

Counterview Desk The Tomb of Aurangzeb, the last of the strong Mughal emperors, located in Khuldabad, Aurangabad district, Maharashtra, has this epitaph inscribed on it: "Az tila o nuqreh gar saazand gumbad aghniyaa! Bar mazaar e maa ghareebaan gumbad e gardun bas ast" (the rich may well construct domes of gold and silver on their graves. For the poor folks like me, the sky is enough to shelter my grave).

Search This Blog