Bangladesh and China are expected to usher in new dynamism with the official visit of the Prime Minister Sheikh Hasina to the country from June 6 to 11 this year. It will be her second visit within four years.
As we look at the prospects of the forthcoming visit, some questions will come to the fore. One that covers everything is – what is the significance of the visit? To understand this better, we may try to break it down to a few simpler questions, eg, what are the circumstances and background of the visit? Why is China important to Bangladesh and vice versa? What is expected to be achieved from the visit?
Although China did not support us during our war of liberation in 1971, they responded well to the overtures made by the Father of the Nation Bangabandhu Sheikh Mujibur Rahman soon after liberation by sending business delegations to China. Since establishment of formal diplomatic relations in October 1975, friendship and cooperation between the two countries has grown and flourished steadily.
China’s sustained support to our economic construction has established her as a time-tested, all-weather and dependable friend. We have also extended unwavering support to China on issues of her core interests namely, Taiwan, Tibet and human rights. We continue to subscribe to a “one China” policy. Our relations are now characterised as a “Closer Comprehensive Partnership of Cooperation”.
Frequent and regular exchange of visits at the highest level have helped in sustaining the momentum and dynamism in our ever expanding and deepening cooperation. The last top level visit was in March 2010 when Prime Minister Sheikh Hasina paid an official visit to China. Within months of her visit, Vice President Xi Jinping visited Bangladesh. He is now the President, the Secretary General of the Communist Party of China and Chairman of the Central Military Commission. In Bangladesh, Sheikh Hasina continues to be Prime Minister for a consecutive second term as the Awami League retained power after the General Elections in January this year.
Therefore, this visit bears very special significance in terms of renewal of personal rapport as well as renewal of commitments by the leadership of the two countries to further expand and deepen cooperation.
Now let us try to understand why China is Important to us? In recent reforms the Chinese leadership has decided to change her growth model by shifting some emphasis from export to domestic consumption. The country is also planning to climb higher up the value chain in manufacturing and to put greater emphasis on science and technology, and innovation. All these are likely to open up China more as a market for imported consumables.
China is now a leading country in innovating and applying mitigation and adaptation technologies, including alternative energy technology. In recent years, our partnership with China in different forums, particularly in APTA, BCIM-EC and SAARC could also bring considerable benefit for all in these forums, including Bangladesh. Under pressure from the US pivot to Asia policy and in view of difficulties with some neighbours regarding conflicting territorial claims over Islands in the East and South China Seas, she is keen to further strengthen her friendship with all countries in the region. All these present new and huge opportunities for Bangladesh to further enhance the mutually beneficial cooperation with China.
China is already Bangladesh’s largest trade partner with almost $9bn annual trade, with prospect of significant further growth in the near future. Although Bangladesh’s exports to China are still very low (about $500mn) compared to her imports from China (almost $8.5bn) it has shown marked improvement in recent years following China’s decision to allow more than 4,700 Bangladeshi Product duty free access under APTA. China is already an important source of FDI into Bangladesh and her investments are rising steadily. Considering both private and public sectors, Chinese investments in Bangladesh now exceed $2bn.
Starting from infrastructure like bridges, roads, power plants, telecommunication to machineries equipment and complete plants, chemicals and industrial raw materials, mechanisation of agriculture, irrigation, hybrid seed technology, climate change-mitigation and adaptation and alternative energy, everywhere we see a preponderance of cooperation with China. She also provides invaluable support and cooperation in the areas of defence, education and culture. There is ample scope for further expanding and intensifying cooperation in all these areas.
During this visit, the two countries are expected to sign a few MOUs for new cooperation including a RMB150mn Chinese Grant. The MOUs could also cover agreements regarding construction of a road tunnel under the Karnaphuli river, a coal fired power plant at Patuakhali, a Chinese exclusive industrial zone, a second railway bridge at Kalurghat, a flood management feasibility study as well as a proposed deep sea port at Sonadia and maritime cooperation.
Similarly, China also benefits significantly from her friendship and cooperation with Bangladesh. When she needs friends to support her on the issues of her core interests like Taiwan, Tibet and human rights, she can always count on Bangladesh. With a population of over 160 million with ever growing purchasing power, Bangladesh is a significant and growing market for China’s exports and a friendly and profitable destination for investing some of her huge surpluses. Bangladesh’s strategic location, straddling the Bay of Bengal also fits into her long-term plan for diversifying and securing alternative supply routes for her strategic resource needs. Possibility of profitable cooperation in exploring and exploiting the marine resources in the Bangladeshi EEZ in the Bay of Bengal could also be an important attraction.
Finally, let us consider what Bangladesh could hope to achieve from the visit? The most important outcome would be the renewal of personal rapport between the leaders of the two countries and the demonstration of their strong mutual confidence and willingness to work closely together. The visit is going to send a signal down the line in the two countries to revitalise their efforts to speed up and tighten implementation efforts on existing cooperative programmes and projects.
New urgency is likely to be instilled in speeding up negotiations and procedural matters on programmes and projects already under consideration. The leaders and officials in the two countries will undertake fresh efforts to explore and identify promising new areas and projects for mutually beneficial cooperation. Such visits always help ignite new enthusiasm and sensitise afresh all stakeholders in looking for expanding opportunities for win-win cooperation, including at the business to business and people to people levels.
