Over the years, there have been regular high-level bilateral talks and visits between the two countries. Ministers of both countries have historically taken the lead in helping to establish this link. In an effort to build closer ties with Beijing, Bangladesh’s Foreign Adviser Touhid Hossain visited China, on his first bilateral visit for a four-day trip. Following political changes in Bangladesh, China is focusing on strengthening ties between the two countries, and this visit marked the beginning of that initiative.
By Akib Rahman Shanto
Foreign Affairs Adviser’s China Visit
Foreign Affairs Adviser Touhid Hossain was on an official tour to Beijing from January 20 to 24 at the invitation of his Chinese counterpart Wang Yi. This visit underscores the interim government’s focus on enhancing ties with China. In response, the Chinese minister reiterated China’s commitment to supporting the interim government and positively responded to Bangladesh’s appeal for financial, technical, and capacity-building support in key sectors.
During the visit, Touhid Hossain held meetings with Commerce Minister Wang Wentao, and Chairman of the China International Development Cooperation Agency (CIDCA), Luo Zhaohui, and the Chinese business community. During the meeting, he requested the CIDCA chairman to reduce the rate of interest on Preferential Buyer’s Credit (PBC) and the Government Concessional Loan (GCL) from 2-3 percent to 1 percent and to extend the repayment period from 20 years to 30 years. Meantime, he also requested for the commitment fee and management fee on Chinese loans to be written off. The CIDCA chairman said they have extended the time for repayment and will consider further concessions in interest rates.
Notably, these 10 extra years for repaying Chinese loans will significantly relieve Bangladesh’s foreign debt repayment pressure. The adviser also proposed an increase in the volume of concessional loans, grants, and the number of financed projects. At FA Hossain’s request to increase the number of Chinese projects, China sought a list of priority projects from Bangladesh. The discussions also touched upon financing for the Metrorail project and the Southern Infrastructure Development Initiative (SIDI) in Bangladesh.
Treatment facilities for Bangladeshis in designated hospitals
Chinese Foreign Minister Wang Yi, in response to Bangladesh’s request, announced to designate two/three hospitals in Kunming, the nearest Chinese city to Dhaka, for Bangladeshis who face problems in obtaining Indian visas for medical treatments He also welcomed Bangladesh’s proposal to establish a specialized Chinese hospital in Dhaka as a goodwill gesture to commemorate the 50th anniversary of diplomatic relations between the two countries. “We will provide the land (for the purpose) as soon as possible,” Touhid Hossian noted as the plan was chalked up to establish a tertiary-level hospital under a public-private partnership (PPP) with China.
MoU on river water data
During this visit, Bangladesh signed the “Implementation Plan of the MoU on Information Exchange on the Yarlung Zangbo River-Yamuna River Hydropower Project” following a meeting between Wang Yi and Touhid Hossain in Beijing. This agreement facilitates the exchange of information and data for the hydroelectric power plant China is constructing on the Yarlung Zangbo River, upstream of the Brahmaputra River. Hossain said during the talks he raised Dhaka’s “serious concerns” regarding a dam on the Brahmaputra, a transboundary river that originated in China and enters into Bangladesh through India. The adviser said the Chinese side assured him their actions would not affect the water flow into Bangladesh.
Support in politics and reforms
It is worth mentioning that both sides emphasized their commitment to continued cooperation under the Belt and Road Initiative (BRI), recognizing Bangladesh’s strategic importance. In addition, China requested Bangladesh to consider joining three global initiatives: GDI, GSI, and GCI. Bangladesh conveyed its intention to examine the proposals. The Rohingya crisis was also a key topic of discussion, with both sides reaffirming their commitment to pursuing a sustainable solution. Chinese FM Wang Yi assured that China would maintain dialogue with Myanmar to address the situation and support regional stability.
Significantly, China Southern Airlines, one of China’s three largest airline companies, wants to sell 10 of its aircraft. China has already contacted Bangladesh regarding the procurement of these used aircraft at discounted rates. This matter was raised at talks during this trip. China will sell these aircraft to Bangladesh on credit and grant funds released by CIDCA. Both sides expressed a shared commitment to regional peace and stability. The matter will be sorted out after talks between the Civil Aviation Authority and Southern Airlines.
However, there were no discussions on the $5 billion Chinese budget support issue nor China’s assistance in the Teesta project implementation. Experts believe these proposals could foster long-term growth in bilateral relations. Also, fast-tracking the BRI project could lead to economic gains for Bangladesh. The good news is that China has expressed a shared willingness to collaborate on proposed Chinese-funded projects, including the Dasherkandi Drainage Project, the modernization of Mongla Port, the establishment of digital connectivity, and the expansion of 4G infrastructure.
It is worth mentioning that Bangladesh is willing to engage in mutual support with China in international forums, strengthen coordination in regional affairs, act as partners in promoting connectivity and regional economic integration, and jointly safeguard international fairness and justice. As the two nations approach the 50th anniversary of diplomatic relations, Beijing has expressed its commitment to advancing all ties with Bangladesh. And now it is hoped that China’s enthusiastic approach, to bilateral relations could reach a unique height during the tenure of the interim government. And, the Foreign Adviser’s China visit may “elevate the relationships to a new level” as such visits contribute to greater cooperation in areas like trade, infrastructure, and regional connectivity.
