Bangladesh to seek China support on energy, economy

Foreign Minister Dr Khalilur Rahman departs Dhaka today (5 May) for a three-day official visit to Beijing at the invitation of Chinese counterpart Wang Yi, diplomatic sources confirmed.

The visit follows Dr Khalilur's recent trip to New Delhi, where he met with Indian External Affairs Minister S Jaishankar and other senior officials.

The Beijing visit is set against a tense international backdrop: escalating US-Israel-Iran conflict, ongoing tensions in Gaza and Lebanon, the Russia-Ukraine war, and rising global petroleum prices, all shaping the context for Bangladesh's foreign policy.

Diplomatic sources say the primary goal is to deepen relations with China, focusing on economic cooperation and strategic partnership.

Dr Khalilur's agenda with Wang Yi and Chinese leaders centres on trade, investment, infrastructure projects, the Rohingya crisis, and regional conflicts, underscoring Bangladesh's top priorities.

Sources said discussions may include a possible visit by Prime Minister Tarique Rahman to China at a mutually convenient time later this year or next.

Both countries are expected to stress high-level exchanges and stronger people-to-people links.

Following Bangladesh's general election on 12 February, the new government's top priority is stabilising economic and social development.

The conflict in the Middle East has driven up global petroleum prices, compounding economic pressures on Bangladesh.

Within this challenging context, Bangladesh will seek substantial Chinese energy cooperation to help address economic pressures, according to diplomats.

China has invested in African energy markets and sources part of its energy needs from them. Dhaka may request Beijing's help to access petroleum from these markets, sources said.

Bangladesh may seek a Chinese economic assistance package to help ease macroeconomic pressures.

The civil war in Myanmar and the Rohingya refugee influx have strained Bangladesh's resources.

Bangladesh will press for Chinese support toward a sustainable Rohingya solution, making this a central point of the visit, sources stated.

Bangladesh is also likely to raise its significant trade imbalance with China, urging Chinese entrepreneurs to invest in emerging sectors to reduce the deficit and diversify Bangladesh's exports.

In 2022–23, Bangladesh exported $610.14 million to China and imported $17.83 billion, resulting in a $17.22 billion deficit.

During Chinese President Xi Jinping's 2016 visit to Bangladesh, both countries signed a series of memoranda of understanding and agreements covering BRI projects and joint ventures.

The memoranda included $26 billion for BRI projects and $14 billion for joint ventures, for a total of about $40 billion.

BRI projects in Bangladesh target energy and transport infrastructure. Investment needs may reach 1.5% of GDP by 2040.

These investments underscore Bangladesh's strategic role in China's BRI, as both countries pursue mutual economic gains.

China ranks fourth among Bangladesh's external lenders, making up nearly 10% of annual external borrowing.

Dhaka and Beijing may also explore a bilateral free trade agreement, potentially leading to reduced tariffs and increased trade flows between the countries.

A feasibility study suggests such an agreement could reduce tariffs on Chinese imports, lowering costs and easing inflation.

Before departing for Beijing, Dr Khalilur is scheduled to meet diplomats from Gulf countries at a breakfast meeting at the State Guest House Padma on Tuesday morning.

He is expected to seek Gulf state cooperation on energy security and employment for Bangladeshis.

The US-Israel conflict with Iran has also created uncertainty in Bangladesh's overseas employment market, according to leaders of the Bangladesh Association of International Recruiting Agencies.

Manpower exports fell sharply in the past two months as the US and Iran remain deadlocked over the conflict and regional stability, they said.

Bangladesh sent 95,092 workers abroad in January, 65,634 in February, 44,629 in March, and 43,490 in April.

Saudi Arabia remained the top destination, though the number of workers declined significantly.

Labour recruiters said low-skilled workers continue to dominate migration flows to Saudi Arabia and other Middle Eastern destinations.