Foreign Affairs Adviser M Tauhid Hossain goes to Beijing Monday
As Japan, China, South Korea are major development partners of Bangladesh in constructing of roads, bridges and economics zones and New Delhi’s grips on Dhaka loses after the ungracious departure of former dictator Prime Minister Sheikh Hasina on August 5, 2024, Dhaka is expected to seek increased Beijing’s involvement during Foreign Affairs Adviser Md Touhid Hossain's planned visit to China beginning on January 21, 2025, sources in Dhaka and Beijing said.
As Donald Trump is taking oath as the President of the United States of America on January 20, 2025, Dhaka is likely to get relaxed environment to negotiate with Beijing in the next couple of years as Donald Trump will look at revamping the US economy cutting US involvement over overseas issues, sources in Dhaka, Beijing and Washington said.
Foreign Affairs Adviser M Tauhid Hossain is poised to embark on the maiden bilateral visit to China starting likely January 21, 2025 at the invitation of Chinese Foreign Minister Wang Yi, sources in Dhaka and Beijing said.
During his visit to Beijing during January 21-24, 2025, Foreign Affairs Adviser M Tauhid Hossain will meet Wang Yi, also a member of the Central Committee of the Chinese Communist Party and a state councilor, and different stakeholders to discuss the political, strategical, economic and cultural issues.
Sources said on January 20, 2025, Foreign Affairs Adviser M Tauhid Hossain will leave Dhaka and is expected to return home January 25, 2025.
This visit, announced by diplomatic sources in both Dhaka and Beijing, comes at a critical time amid ongoing global tensions such as the Russia-Ukraine conflict and the turmoil in the Middle East, major political change in Bangladesh and tension between Dhaka and New Delhi after the ouster of dictator Prime Minister Sheikh Hasina on August 5, 2024.
According to a highly-placed Bangladeshi diplomat, this visit aims to deepen Bangladesh's ties with China, the world’s second-largest economy. In the context of these international conflicts, strengthening bilateral relationships becomes all the more crucial for both nations.
According to the Economic Relation Division (ERD) of Bangladesh, during 1999--2000-2023-24, China committed foreign aid valued at 10291.884 million US dollars to Bangladesh and disbursed 6541.983 million US dollars during the same period. However, China committed to disburse 146.34 million US dollars as grants and disbursed 146.34 million US dollars. China promised to give Bangladesh 7253.162 million US dollars as official development assistant (ODA), disbursed 3752.115 million US dollars and repaid 261.633 US dollars.
Meanwhile, during the meeting with Chinese leaders, Bangladesh will urge Beijing to speed up the construction of the Chinese Economic and Industrial Zone (CEIZ) in Chattogram since the Bangladesh Economic Zones Authority (Beza) first took the initiative to build the enclave in a bid to attract foreign investment.
Insiders said Beza had acquired 784 acres of land for the economic zone in the Anwara upazila of the port city and had already constructed a couple of roads and established other utility services for the zone.
The Beza initially signed a contract with China Harbour Engineering Company Limited (CHEC) to establish the economic zone in October of 2016.
Executive Member of the Bangladesh Economic Zones Authority (Beza) Mozibur Rahman while talking to the Dazzling Dawn said that the construction work of the
Chinese Economic and Industrial Zone (CEIZ) in Chattogram is going on.
Meanwhile, Foreign Affairs Adviser Md Touhid Hossain's planned visit to China is set to strengthen the deep understanding, friendship, and vibrant partnership shared by both nations, signaling a renewed commitment to advancing their strategic cooperation.
Bangladesh and China expressed optimism that the Foreign Adviser’s visit will pave the way for a "new chapter of cooperation" between Bangladesh and China.
During the visit, the top diplomats of the two countries are expected to formally announce the inauguration or celebration of the 50th anniversary of establishment of diplomatic relations between Bangladesh and China, said the Ministry of Foreign Affairs.
Ambassador of China to Bangladesh Yao Wen met Foreign Secretary Md Jashim Uddin at the Ministry on Thursday ahead of the Foreign Adviser’s visit to China scheduled for 20–24 January.
The meeting mainly highlighted the preparation of Foreign Adviser’s visit on both sides.
It was underlined that the upcoming visit would "carry special significance" as it is the first official bilateral visit of Adviser Hossain this year.
The Ambassador expressed China’s sincere appreciation for Bangladesh’s unwavering support to One-China Policy.
He reaffirmed China’s firm respect for Bangladesh’s sovereignty and territorial integrity, and reiterated China’s continued support for Bangladesh’s stability, reforms, and democratic transition.
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The envoy emphasized that this visit would further cement the cooperative ties between the two nations.
Ambassador Wen also underscored the importance of strengthening economic and strategic cooperation, with a particular focus on projects like the China Economic Zone in Chattogram and the enhancement of connectivity initiatives.
He also emphasized the importance of practical bilateral cooperation, particularly in sectors such as digital connectivity and port modernisation.
Regional and global issues also featured in the discussions, notably the ongoing Rohingya crisis.
The Foreign Secretary conveyed Bangladesh’s deep appreciation for China’s active role in facilitating dialogue on the issue and sought China’s continued support in ensuring an early repatriation of the forcibly displaced Myanmar nationals.
Both sides expressed a shared commitment to regional peace and stability.
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The meeting also touched upon exchange of visits and agreed that such visits will further strengthen the bilateral relationship and contribute to greater cooperation in areas like trade, infrastructure, and regional connectivity.
Foreign Adviser Md Touhid Hossain will travel to Beijing on a bilateral visit from January 20 at the invitation of the Chinese government to discuss a range of bilateral issues.
"China has extended an invitation, and I will be going to address the issues we share," he told reporters at his ministry.
When asked about the specific topics to be discussed during his visit, Touhid refrained from providing further details but mentioned that an inter-ministerial meeting has already been scheduled to finalize the agenda for the discussions in Beijing.
The foreign adviser described the visit as part of Dhaka’s ongoing efforts to maintain balanced relations with China, alongside the United States and India.
Earlier, Touhid had emphasized Bangladesh's commitment to strengthening both economic and security ties with China, while also deepening collaboration in critical areas such as clean energy and infrastructure development.
At a seminar on Friday, Touhid stressed the importance of establishing seamless connectivity between Bangladesh and China through Myanmar, highlighting the mutual benefits of such an initiative.
This year marks the 50th anniversary of the establishment of diplomatic ties between Bangladesh and China.
Meanwhile, as the ADP implementation rate up to November stood at 12.29%, lower than 18.41% in FY24 and 17.06% in the same period of the previous fiscal year, the increased Chinese involvement is in Bangladesh’s infrastructure is very important, said a high official of the Ministry of foreign Affairs while talking to this correspondent on Saturday.
The government is set to revise the Annual Development Programme (ADP) for the current fiscal year down by Tk49,000 crore, or 18.49%, due to slow implementation caused by the July mass uprising, resulting instability, and project revisions.
According to data from the Finance Division and the Planning Commission's Programme Division, government fund allocations will decrease by Tk30,000 crore, or 18%, while foreign fund allocations will drop by Tk19,000 crore, or 19%.
The downsizing follows the lowest-ever development spending rate during the first five months of the current fiscal year, according to the Implementation Monitoring and Evaluation Division.
Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, told The Business Standard that the post-July period has seen instability across all areas, with the situation remaining abnormal.
Meanwhile, a political expert highlighted that political leaders from the USA, India, and EU countries have frequently expressed concerns over Bangladesh's growing dependence on China. Following the World Bank, Asian Development Bank, USA, and Japan, China has become a major source of loans for Bangladesh's development projects. Furthermore, Bangladesh’s defense cooperation with China remains a significant concern for India and Western countries.
Wang Yi is also a member of the Central Committee of the Chinese Communist Party and a state councillor. The Minister is the second-highest ranking diplomat in China after the director of the Office of the Central Foreign Affairs Commission.
The current minister is Wang Yi, who concurrently serves as the director of the Office of the Central Foreign Affairs Commission.
Foreign Affairs Adviser M Tauhid Hossain will also discuss national and regional issues, civil war in Myanmar and repatriation of Rohingyas in Myanmar with Wang Yi, also a member of the Central Committee of the Chinese Communist Party and a state councillor.
The Awami League (AL) was highly tilted towards China over the last 15 years (2009-2024) that sometimes caused embarrassment to China and overlooked the interest of Beijing, said a Bangladesh diplomat.
The Teesta bridge project has been a test case to Bangladesh over the years as India has raised objections to the Chinese backed project on security and strategic points, sources in Dhaka, New Delhi and Beijing said.
The minister of foreign affairs of the People's Republic of China is the head of the Ministry of Foreign Affairs of the People's Republic of China and one of the country's top and most important cabinet posts. Officially, the minister is nominated by the premier of the State Council, who is then approved by the National People's Congress or its Standing Committee and appointed by the president.
During the last 15 years (2009-2024), former Prime Minister Sheikh Hasina served the interest of India, sometimes ignoring the interest of Bangladesh and overlooking China, sources said.
As FDI has dried during the interim government, Bangladesh will invite Chinese investment in the various sectors, sources said.
China has been a major investor in Bangladesh over the years. Chinese entrepreneurs invested 428.09 million US dollars in Bangladesh in 2021-22 fiscal year, 68.15 million US dollars in 2022-23 fiscal year and 283.56 million US dollars in 2023-24 fiscal year.
Hong Kong, also a part of China, invested 121.72 million US dollars in 2021-22 fiscal year,147.55 million dollars in 2022-23 fiscal year and 81.10 million US dollars in 2023-24 fiscal year.
During his visit, Foreign Affairs Adviser M Tauhid Hossain and Chinese leaders are expected to engage in discussions covering a wide range of issues. These will include trade, investment, mid and long-term loans, Belt and Road Initiative (BRI) projects, various Chinese investments, the Rohingya crisis, and the civil war in Myanmar. Such comprehensive dialogue aims to address and bolster the multifaceted relationship between the two countries.
Sources indicate that Bangladesh may seek a special economic package from China to mitigate the macroeconomic pressures facing the country. The civil war in neighboring Myanmar and the influx of 1.1 million Rohingya refugees into Bangladesh have severely impacted the country’s social fabric.
Consequently, Dhaka is expected to request Beijing's active initiatives in resolving this crisis. Additionally, Bangladesh will address the significant trade imbalance with China, urging Chinese entrepreneurs to invest in promising sectors. Currently, China is Bangladesh’s largest trading partner. In the 2022-23 fiscal year, Bangladesh exported goods worth $610.14 million to China, while imports from China totaled $17,826.6 million, resulting in a trade deficit of over $19 billion.
In 2016, during President Xi's visit to Bangladesh, both nations signed a series of Memorandum of Understanding (MoUs) and agreements, promising $26 billion in BRI projects and $14 billion in joint ventures, amounting to a $40 billion package.
BRI projects in Bangladesh have primarily focused on energy and transportation, with infrastructure investment needs projected to reach 1.5% of GDP by 2040. This substantial investment highlights the strategic importance of Bangladesh in China’s BRI plans and the mutual benefits both countries seek to achieve through these collaborations.
During this visit, Bangladesh is likely to request China to give soft loans to ease the strain on its dollar reserves. These funds could be utilized for importing raw materials and providing budget support. Discussions regarding these loans began following China’s expressed interest. The Economic Relations Division (ERD) recently held an inter-ministerial meeting to evaluate the loans' pros and cons, ensuring that the financial terms align with Bangladesh’s economic needs and repayment capabilities.
China currently ranks fourth among the 32 countries and organizations lending to Bangladesh, with Chinese loans representing nearly 10% of the total loans received annually by Bangladesh. Over the last two years, this amount has exceeded $1 billion annually. Of the total loans provided by China, $3 billion has been granted in the last four years, indicating a growing financial relationship between the two nations.
To alleviate pressure on its depleting reserves, which stood at $19.95 billion as of April 30, Bangladesh Bank allowed the settlement of international trade in Chinese yuan in September 2022. This move aims to reduce reliance on the dollar, thereby diversifying the currency mix and mitigating exchange rate risks. This strategy is part of a broader effort to stabilize Bangladesh's economy amid global financial uncertainties.
Beijing emphasized that the early signing of a China-Bangladesh Free Trade Agreement (FTA) would usher in a new era of economic and trade cooperation, describing it as a transformative step for both countries.
The feasibility study report indicates that the FTA will reduce tariffs on Chinese goods imported into Bangladesh, potentially lowering import prices and alleviating inflation. This reduction in raw material costs could enhance the competitiveness of Bangladeshi products in the international market, supporting an increase in foreign exchange reserves. Furthermore, the FTA is expected to facilitate Chinese investment in Bangladesh, creating employment opportunities, promoting industrial upgrades, and diversifying exports.
The repayment terms of Chinese loans, typically 10-15 years excluding the grace period, pose challenges, with high annual principal payments compared to loans from institutions like the World Bank. Zahid Hussain, former lead economist at the World Bank's Dhaka office, commented on China's efforts to bolster the yuan's reliability in global trade and the potential benefits of such loans, provided the conditions are favorable.
Meanwhile, China has expressed appreciation for Bangladesh's interest in joining BRICS and assured active support. This commitment was reiterated during the 13th round of bilateral political consultations between Bangladesh and China in Beijing. The consultations focused on enhancing bilateral relations, economic ties, trade, and investment cooperation on multilateral platforms. Both nations emphasized the importance of high-level exchanges and people-to-people connectivity.