PM Hasina’s China visit opened new prospects for Sino-Bangladesh cooperation

Kamal Uddin Mazumder

(kamalmazumderju@gmail.com)

After a three-day bilateral visit, PM Sheikh Hasina returned to Dhaka from Beijing. During her stay in Beijing from July 8 to 10, the Prime Minister held a bilateral meeting with Chinese President Xi Jinping and completed various programmes, including a delegation-level bilateral meeting with Chinese Prime Minister Li Qiang. These bilateral talks mainly featured business, trade and commerce, investments, bilateral relations, and various regional and international matters. After two fruitful visits to India in June, Sheikh Hasina’s visit to China can be characterized as balancing diplomacy. Bangladesh has seen China as its most important development partner and India as its most important political ally for the past few decades. Bangladesh has been maintaining a delicate diplomatic balance between these two influential countries by prioritizing national interests. It will be further consolidated through successive state visits to India and China.

Bangladesh’s relations with India and China have now reached unique heights. “Bangladesh will not deviate from its foreign policy motto of friendship with all, enmity with none.” This message was probably conveyed to both countries by the Prime Minister’s visit to China immediately after his visit to India. The Prime Minister made it clear that the rivalry between India and China is their own issue, and Bangladesh will maintain good relations with both countries in its own interests.

This time, the Prime Minister’s visit to China is particularly significant for Bangladesh due to geopolitical reasons and the reality of an economic crisis. Over the past decade, China has become one of Bangladesh’s development partners through massive investment. Chinese funding and technology have contributed to many of the country’s important projects, such as the Padma Bridge and the Bangabandhu Tunnel. If this relationship between Bangladesh and China becomes stronger, the country’s development speed will increase. According to the Washington-based think tank ‘American Enterprise Institute,’ the Chinese investment in Bangladesh is currently about 7 billion dollars. The Prime Minister’s visit saw the signing of 21 MoUs and 7 announcements with China, including completing a feasibility study for a free trade agreement and a bilateral investment promotion agreement. China’s new investment announcement is very positive for Bangladesh.

Prime Minister Sheikh Hasina’s visit to China is also very important for the commercial aspect of Bangladesh. Currently, China is Bangladesh’s single largest trading partner. According to the Ministry of Commerce, bilateral trade with China is worth about 24 billion dollars. In the fiscal year 2022–23, Bangladesh exported goods worth $677 million to China and imported goods worth $22.9 billion from China. The Prime Minister told the 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 measures taken by the government in this regard. If Chinese investment increases, it will be very positive for the country’s economy.

In a significant development, China and Bangladesh elevated their relations to a “comprehensive strategic cooperative partnership” from the “strategic partnership of cooperation.” “It’s a reflection that both sides want to take the relationship to a new level,” former ambassador Munshi Faiz Ahmad said in his assessment of the visit. According to an article from the China Institute of International Studies, the word “comprehensive” added to the term “strategic partnership” means that the partnership covers a wider range of areas, including politics, economy, trade, security, humanities, and international and regional affairs. This indicates that the two sides recognize and pursue their relationship at a higher level. “The term ‘comprehensive’ partnership usually implies that relations have reached a relatively high level of maturity and institutionalization, with close cooperation in various fields, including political, economic, humanistic, international, and regional affairs.”

The Prime Minister visited China at a time when the country’s economy was going through tough times. There is no substitute for increased foreign trade, economic assistance, and increased foreign investment for economic stability. These issues have gained importance during the Prime Minister’s visit to China this year. China has promised to provide economic support to Bangladesh in the form of grants and three types of loans: interest-free loans, concessional loans, and commercial loans. China also offered Bangladesh one billion yuan (about $140 million) as economic assistance. Beijing said it attaches utmost importance to its relationship with Dhaka and assured Bangladesh of continued support for its journey of development. At the meeting with Hasina, Xi said China wants to invest more in Bangladesh and work with it on the international stage.

Bangladesh and China have agreed to step up experience sharing on development planning and economic development policies and “further deepen high-quality Belt and Road cooperation under the principle of planning together, building together, and benefiting together.” The two sides will accelerate existing cooperation projects, continue to expand areas of cooperation, and work towards more fruitful outcomes in practical cooperation. The Chinese side supported the Bangladesh side’s plan to implement the Southern Integrated Development Initiatives of Bangladesh, among others, under the framework of the Belt and Road Initiative (BRI) to help this region achieve balanced and sustainable development, according to a 27-point joint statement issued after the completion of Prime Minister Sheikh Hasina’s official visit to Beijing. 

China’s role in resolving the Rohingya crisis is very important. The Chinese side commended efforts made over the years by Bangladesh to provide humanitarian assistance for the displaced people and expressed support for Bangladesh and Myanmar to find a mutually acceptable solution through friendly consultations and following the arrangements on repatriation existing between the countries. China will play an important role in solving the Rohingya crisis by holding talks with the Myanmar government and even with the Arakan army if necessary. It is expected that China will take this issue seriously.

Next year, China and Bangladesh will celebrate the golden jubilee of diplomatic relations. Both countries are expected to maintain the momentum of high-level interactions, enhance strategic communication, and deepen strategic mutual trust through visits, the exchange of letters, and meetings on multilateral occasions. All in all, PM Hasina’s visit to China will be a significant step towards making China-Bangladesh relations a model of friendship among developing countries.