BANGLADESH---CHINA

INTERNATIONAL INVESTMENT
• China and Bangladesh established diplomatic relations in 1976. Since
then, China has invested in and implemented a slew of coal-based
power projects. According to the Observer Research Foundation.

• Chinese officials made their first high-level visit in 1978, which set off
improvements in bilateral relations. Greater momentum came in
2013, with the launch of China’s Belt and Road Initiative (BRI). Dhaka
formally joined the BRI during President

• In 2016, President Xi became the first Chinese president to visit

Bangladesh in 30 years. Bilateral relations were not always smooth
and warm.
• Bangladesh received a net FDI of US $1.159 billion from China in FY-
19, making it the top receiver in South Asia. Henceforth, one can
observe that the ties between Bangladesh and China increased
exponentially after Chinese president Xi Jinping visited Dhaka in
October 2016. As per many reports, the Chinese President and Prime
Minister Sheikh Hasina inked 27 agreements worth billions of dollars,
elevating their relationship from a “comprehensive partnership of
cooperation” to a “strategic partnership of cooperation”. Prime
Minister Sheikh Hasina committed to enhancing the country’s
economy after Covid-19 and achieving the status of a developed
nation by 2041 at the 76th United Nations General Assembly (UNGA).
In 2015, China surpassed India as Bangladesh’s largest trading partner.
China’s expanding engagement with Bangladesh is built on stable
economic ties and Chinese infrastructure assistance. Dhaka has
welcomed Beijing’s cooperation as the two sides agreed to expand
cooperation on trade, defence, and infrastructure projects, further
strengthening China-Bangladesh ties.
In terms of supplying arms to Bangladesh, China has the reputation to be stand first
China’s investment in the Padma Bridge project, that
connects the north and south of Bangladesh
• The Padma Bridge is a multipurpose road-rail bridge across the Padma River in
Bangladesh. The progress of the construction of the much-talked-about Padma
Multipurpose Bridge is now more than halfway to completion, after
overcoming many hurdles. The Bangladeshi government is optimistic that the
mega-structure will boost the GDP by 1.2%. The $3.7bn bridge project is also a
physical reminder of China’s growing presence in the country.

• China has provided more than $3bn for the project as part of a wider plan to
spend $30bn on Bangladeshi infrastructure schemes. China stepped in after the
World Bank cancelled a $1.2bn credit line for the scheme, saying it had found
“credible evidence” of corruption in the project. The scale of Chinese
investment in Bangladesh, further asserts its significance in South Asia
• Bangladesh is the third largest trade partner of China in South Asia. But
bilateral trade between them is highly skewed in favour of Beijing. China has
bolstered its economic aid to Bangladesh to address the concerns of trade
imbalance. Under the auspices of the Asia-Pacific Free Trade Agreement
(AFTA), China removed tariff barriers to 84 types of commodities imported
from Bangladesh and is working to reduce tariffs over the trade of jute and
textiles. China has also offered to construct nuclear power plants in
Bangladesh to help meet the country's growing energy needs, while also
seeking to aid the development of Bangladesh's natural gas resources.

• According to a report by the World Bank, Bangladesh has made remarkable

economic and development progress in the past five decades.
Amid this rapid progress, Bangladesh continues to eye investment from China,
its largest source of foreign direct investment.
Officials from China
Communications
Construction
Co and China Road and
Bridge
Corp sign a public-private
partnership contract for an
overpass project in Dhaka
with representatives from
the Bangladesh National
Highway Authority on Jan 9.
Benefits of Belt and Road Initiative
• Chinese officials made their first high-level visit in 1978, which set off
improvements in bilateral relations. Greater momentum came in 2013,
with the launch of China’s Belt and Road Initiative (BRI). Dhaka formally
joined the BRI during President Xi’s visit to Bangladesh in 2016, when
relations were upgraded to a strategic partnership. BRI membership has
brought Bangladesh an influx of Chinese investment totaling USD 38.05
billion, roughly equal to 10 percent of Bangladesh’s gross domestic
product, the largest sum ever pledged to Bangladesh by a single
country. China is now Bangladesh’s top trading partner, direct foreign
investor, trade importer, and military hardware supplier. In 2020, China
also granted duty-free access to its market for 97 percent of Bangladeshi
products.
China’s economy and neutrality win strong support

• While the Bangladeshi population’s perception of China is

overwhelmingly positive, the degree of enthusiasm varies among the
political, military, and business elites and ordinary citizens. In 2014, the
Pew research survey found 77 percent of Bangladeshis viewed China
positively, the highest positive rating for all countries. By contrast, India
continues to be seen as a potential threat to Bangladesh’s security by
significant sections of the populace and elites. Overall, 43 percent of
Bangladeshis prefer the United States as an ally. The lack of national
unity and consensus has long been a major stumbling block for
Bangladesh’s nation building process. The two major political parties –
‘’the Awami League’’ and the Bangladesh Nationalist Party – rarely
agree on anything except closer ties with Beijing.
Conclusion:
• Both countries accepted to build a "Bangladesh-China Friendship
Exhibition Center" in Dhaka. The amount of foreign trade between
Bangladesh and China is about 10 billion dollars. Bangladesh import
about 8 billion dollars of goods from China while it exports 2 billion
dollar of good. However, China has recently waived tariffs of 97%
Bangladesh's product.