Prime Minister Sheikh Hasina's upcoming visit (July 8-11, 2024) to China has been widely discussed within the arena of politics and international relations in Bangladesh. The visit may add new dimensions to Bangladesh's geo-political strategy and regional equation. Just two weeks ago, the PM visited New Delhi, which further cemented India-Bangladesh relations.
Economic and developmental support
While her visit to China this time may be important in various aspects, it is particularly so because of its potential to secure a loan of more than 540 billion yuan, equivalent to China's roughly $7bn, for Bangladesh. China has been playing an important role in Bangladesh's development progress for a long time now and their economic support is of special importance.
China's loan of $7bn can play a significant role in Bangladesh's infrastructure development, trade expansion, and technology development. Through this loan, initiatives will be taken to build and renovate multiple friendship bridges to develop the digital economy and green economy in Bangladesh. This falls in line as China is Bangladesh's largest trading partner and has invested in many major infrastructure projects.
Preparations are underway to finalize eleven documents, including seven MoUs for signing during Sheikh Hasina's visit to China. Notable among these are China's Global Development Initiative (GDI), trade assistance, investment protection, digital economy, blue economy, announcement of free trade agreement survey and construction and reform of multiple alliance bridges. Through these initiatives, China is trying to increase development cooperation with developing countries.
The integration of GDI with Bangladesh's development programs is expected to add new dimensions to the country's economic growth. Through this participation, Bangladesh will be able to use China's technology and experience to implement its development plans. A new MoU on trade assistance and investment protection is expected to be signed between Bangladesh and China. These agreements will further strengthen trade and investment relations between the two countries and play an effective role in ensuring that investors can conduct their business safely and seamlessly in Bangladesh.
The integration of GDI with Bangladesh's development programs is expected to add new dimensions to the country's economic growth
The development of Bangladesh is very important in terms of the digital economy. During the PM's visit, she will discuss the digital economy with China and sign a memorandum of understanding. Through this, Bangladesh will be able to open up new possibilities in digital technology development, e-commerce, and the technology sector. Besides, the announcement of the free trade agreement survey will reveal new directions of trade expansion between the two countries.
Balancing relations
Maintaining balance in Bangladesh's geo-political strategy is crucial. Given the growing competition between China and India and efforts to expand regional influence, Sheikh Hasina's government is strategically maintaining ties with both countries. During her last visit to New Delhi, the PM discussed increasing India-Bangladesh economic and security cooperation, which further strengthened the relationship between the two countries.
Sheikh Hasina's visit to China is also a part of the effort to keep a balanced foreign policy. While Bangladesh looks to strengthen its position by strengthening economic and diplomatic relations with China, they must in turn maintain strong relations with India and the US. India is Bangladesh's closest neighbour and long-term partner. Sheikh Hasina's visit to China and its economic cooperation are still in India's attention and the US is also seriously monitoring Bangladesh's visit to China.
There is talk about the impact Bangladesh's economic ties with China will have on Bangladesh's relations with the United States. Nonetheless, Bangladesh is expected to stick to its policy of maintaining balance in its international relations. There is no doubt that the United States will look at this visit as growing economic dependence on China. In particular, countries like Sri Lanka, Maldives and Nepal have become very close to China and the sphere of US influence there is almost exhausted. In this reality, the diplomatic circles are waiting to see if the Prime Minister's visit to China leads to political polarization beyond economic and commercial issues.
Due to Bangladesh's strategic location and geo-political influence, the country is trying to balance its regional neighbours. But developing relations with China while maintaining relations with India remains a difficult task. However, Sheikh Hasina's strategic insight and balanced policy are expected to be helpful in meeting this challenge. Her visit to China is going to be an important milestone for Bangladesh.
Bangladesh can strengthen its position by increasing economic cooperation with China, developing various sectors, and implementing a balanced foreign policy. Successful implementation of this visit will add a new dimension to the development process of Bangladesh and consolidate the country's position in the international arena.
Professor Dr Sujit Kumar Datta is a Chairman in the Department of International Relations, University of Chittagong, Bangladesh. He can be reached at [email protected]
