The China-Bangladesh business relationship received a renewed boost after the recent visit of the Chinese President, Xi Jinping. This was the first time that a Chinese head of state graced our nation with his presence in the past 30 years. With him came an impressive delegation of 120 officials and business personalities most of whom from the manufacturing sector which can be seen as a signal regarding the focal point of this partnership.
Speaking highly of the Bangladesh-China ties, the prime minister pointed out that the relations between the two nations were underpinned by “the Five Principles of Peaceful Co-existence, Spirit of Good Neighbourliness, Mutual Trust, Confidence and Non-Interference in each other’s internal affairs”.
Prime Minister Sheikh Hasina reaffirmed that Bangladesh strongly adheres to the One-China policy and supports Beijing on issues related to its core national interests and efforts to safeguard its national sovereignty and territorial integrity.
Inside sources from both parties confirmed that the eagerness is there, however, the performance from the Bangladeshi side in terms of investment utilization will be crucial. If everything is done right new opportunities will open up in the energy, IT, leather and RMG sectors. Bangladesh’s job now is to show their willingness and competitiveness in these fields according to the Chinese representatives.
The meeting was arranged by the apex trade body of Bangladesh, the Federation of Bangladesh Chamber of Commerce & Industry (FBCCI) and the China Council for the Promotion of International Trade (CCPIT) on 14th October 2016. On this date, 26 contracts were signed amounting which amounted to around $13.6 billion worth of loans which would be utilized for pharmaceuticals, solar and coal based energy. Also, two Specialized Economic Zones, one by the government of China in Anawora, Chittagong and another private initiative in Mongla are underway.
The total amount of credit to be provided by the Chinese has yet to be disclosed. However, it has been indicated that it might be around the $40 billion region. The conditions and the interest rates have not been set yet.
While asked about the nature of investment the Honorable Commerce Minister, Tofael Ahmed said “Mustafa Kamal of Meghna Group of Industries Ltd has signed for 1300 megawatt coal-based power plant and Beximco Group has penned a deal for a solar energy plant and coal-based power plant. These initiatives will not only help the country but will also attract FDI.” He went on to mention that our Honorable Prime Minister has requested for duty-free access to the Chinese market for our products under the Asia – Pacific Trade Agreement (APTA).
While addressing attendants at the signing ceremony, Honourable Commerce Minister said that Duty-Free access for Bangladeshi products in the Chinese market is necessary for minimizing our trade gap. This is especially important as China is the largest trading partner of Bangladesh.
