The Chinese government and businesses committed $2.1 billion in loans, investments, and grants to Bangladesh during Chief Adviser Prof Muhammad Yunus’s visit to China.
Prof Yunus and Chinese President Xi Jinping met at the Great Hall of the People in Beijing yesterday morning.
For all latest news, follow The Daily Star’s Google News channel. After the bilateral meeting, a joint statement was issued, highlighting the cooperation between the two countries.
President Xi promised to encourage Chinese firms to relocate their manufacturing plants to Bangladesh as they look to diversify their production destination, said Ashik Chowdhury, executive chairman of Bangladesh Investment Development Authority and Bangladesh Economic Zone Authority.
Nearly 30 Chinese companies have pledged to invest $1 billion for the establishment of a Chinese Industrial Economic Zone in Chattogram as Prof Yunus urged them to invest in manufacturing in Bangladesh, CA’s Press Wing said in a statement.
“It is a milestone visit,” Chinese Ambassador to Dhaka Yao Wen said.
Prof Yunus left for China on March 26 at the invitation of the East Asian country. Yesterday was the third day of his four-day visit.
He delivered a speech at the Boao Forum for Asia Annual Conference in Hainan and met Vice-Premier of China Ding Xuexiang and other dignitaries.
Han Zheng, vice-president of China, also met the CA yesterday.
Yunus met Chinese business leaders at three high-level dialogues on trade, investment, and social business.
Prof Yunus addressed officials of more than 100 Chinese firms and urged them to invest in advanced textiles, pharmaceuticals, light engineering, renewables and other sectors in Bangladesh.
“This visit will play a major role in persuading a lot of Chinese companies to invest in Bangladesh. It is just a matter of time,” CA’s Press Wing quoted Ashik as saying.
“China has planned to lend some $400 million for the Mongla port modernisation project, $350 million for the development of the China Industrial Economic Zone, and $150 million as technical assistance. The rest of the amount would come as grants and other forms of loans,” reads the press wing statement.
WATER RESOURCE MANAGEMENT
At separate meetings with President Xi and Chinese Water Resources Minister Li Guoying, the CA sought a 50-year masterplan from China to manage Bangladesh’s river system.
The CA said China had done wonders in managing some of the intractable water issues.
“We have the same problems you have. So, we will be happy if you share your experiences,” the CA told the water resources minister.
Due to rising population and the demand for development, people encroach upon rivers, Prof Yunus said, adding that siltation was another challenge.
Bangladesh may need help in cleaning the polluted rivers surrounding Dhaka. The Chinese minister then promised technical support.
During his meeting with President Xi, Prof Yunus urged Chinese companies to participate in the Teesta River Comprehensive Management and Restoration Project.
China earlier conducted a feasibility study on the project after the Awami League government approached it in 2023. China said at the time that it was ready to support the project in phases, but the AL regime did not proceed further.
Asked about the geopolitical implication of the Teesta project, former ambassador to China Munshi Faiz Ahmad said the project was more of a concept than reality.
Dhaka and Beijing also spoke positively of the signing of the Implementation Plan of the MoU on Exchange of Hydrological Information of the Yarlung Zanbo-Jamuna River.
China has plans for a hydro-electricity project over the Yarlung Zanbo river, which flows through Bangladesh, and is called the Jamuna.
Experts say the project will affect the water flow of the Jamuna.
YUNUS-XI STATEMENT
According to the joint statement released after the bilateral meeting, the two sides agreed to strengthen cooperation in hydrological forecasting, flood prevention, disaster reduction, river dredging, integrated management of water resources, and related technology sharing.
They also agreed to make concerted efforts to tackle climate change, tap the potential for a blue economy, strengthen exchanges on maritime affairs, and hold a new round of Dialogue on Maritime Cooperation.
Apart from signing a deal, eight MoUs, the two countries also announced the signing of a commercial agreement for modernising and expanding the Mongla port, building a robot physiotherapy and rehabilitation centre, and donating a mobile cardiac surgery unit.
At the bilateral meeting, the Chinese side said it supported the interim government in effectively exercising governance, preserving unity and stability, and leading Bangladesh onto a path of development and prosperity.
The Bangladesh side thanked China for the support and extended support to carry forward the bilateral ties. Both sides reconfirmed equal commitment to nurturing the Comprehensive Strategic Cooperative Partnership with utmost importance.
Bangladesh sought to lower the interest rate on Chinese loans from 3 percent to between 1 and 2 percent. It also requested a waiver of the commitment fees on the Chinese-funded projects.
President Xi said China would consider reducing the interest rates, CA’s Press Secretary Shafiqul Alam wrote on Facebook.
China announced it would build a specialised hospital in Bangladesh.
Prof Yunus invited Beijing to set up a China cultural centre in Bangladesh.
The two leaders also discussed the purchase of multiple-role combat aircraft and multimodal transport connectivity linking the southern Chinese city of Kunming with Bangladeshi ports.
Chinese foreign minister Wang Yi, Chairman of China’s National Development and Reform Commission Zheng Shanjie, and vice foreign minister Sun Weidong were among senior Chinese officials who were present at the meeting.
From the Bangladesh side, Foreign Adviser Touhid Hossain, Energy and Transport Adviser Fouzul Kabir Khan and CA’s High Representative Dr Khalilur Rahman attended the meeting.
BRI COOPERATION
The two sides agreed to promote high-quality Belt and Road cooperation, strengthen international cooperation on industrial and supply chains, improve infrastructure, and advance industrialisation.
Bangladesh welcomes Chinese companies’ participation in the Mongla Port Facilities Modernization and Expansion Project, and stands ready to work with the Chinese side to develop the Chinese Economic and Industrial Zone in Chattogram.
The two sides underscored the importance to initiate negotiations on the China-Bangladesh Free Trade Agreement and officially start negotiations on optimising the China-Bangladesh Investment Agreement.
They agreed to implement the export of fresh mangoes and other agricultural and aquatic produce from Bangladesh to China. The current bilateral trade stands at $25 billion, with Bangladesh exporting less than $1 billion.
China welcomed Bangladesh to make full use of platforms such as the China International Import Expo, China-South Asia Expo, and China International Supply Chain Expo to expand cooperation with China, while reaffirming readiness to create a favourable investment environment for Chinese companies.
POLITICAL COMMITMENT
The two sides agreed to hold fast to the Five Principles of Peaceful Coexistence, carry forward their traditional friendship, deepen political mutual trust and synergy between development strategies, while reaffirming mutual support on issues involving each other’s core interests and major concerns.
The joint statement said China consistently adheres to the principle of noninterference in the internal affairs of other countries, respects Bangladesh’s independence, sovereignty and territorial integrity, and the development path independently chosen by the people of Bangladesh.
Bangladesh reiterated its firm commitment to the One-China principle and its position that China is the sole legal government representing the whole of China, and Taiwan is an inalienable part of China’s territory.
The statement says Bangladesh opposes the “Taiwan independence” and supports China on issues pertaining to China’s core interests and China’s efforts to safeguard its national sovereignty and territorial integrity.
Asked about this particular statement, Faiz said the previous government also maintained this policy.
Both sides reaffirmed their commitment to the purposes and principles of the UN Charter, the practice of true multilateralism and greater democracy in international relations and committed to jointly advocate an equal and orderly multi-polar world.
ROHINGYA CRISIS
Bangladesh has been seeking China’s support for Rohingya repatriation for a long time.
The issue was also discussed during the meeting.
The Chinese side said it supported Bangladesh and Myanmar in finding among others a mutually acceptable solution through friendly consultations.
China will continue to provide support for the repatriation.
Faiz said, “I don’t see any concrete outcome on the Rohingya issue. I don’t know if we could push for it effectively.”
CA’s Press Secretary Shafiqul said, “I would say the meeting with President Xi Jinping was a great success. The cordiality in the meeting explains how they respect Prof Yunus and the level of relationship they want to have with Bangladesh.”