Bangladesh secures $2.1b in investment, loan and grant from China
President Xi assures positive consideration to interest rates reduction
China and Bangladesh signed nine instruments today (28 March), including a landmark economic and technical cooperation deal, following a meeting between Chief Adviser Muhammad Yunus and Chinese President Xi Jinping.
During the discussions, President Xi assured positive consideration of Bangladesh's key proposals, including lowering interest rates on Chinese loans and expanding collaboration in water resource management.
The visit yielded a commitment of $2.1 billion in Chinese investments, loans, and grants. The Chinese government and companies pledged $1 billion in investments in Bangladesh's exclusive Chinese Industrial Economic Zone. Additional funding includes $400 million for Mongla Port modernisation, $350 million for the China Industrial Economic Zone, and $150 million in technical assistance.
Bangladeshi officials and the Chinese ambassador in Dhaka, Yao Wen, said nearly 30 Chinese companies have pledged to invest one billion dollars in the exclusive Chinese Industrial Economic Zone after the chief adviser urged private enterprises to invest in the manufacturing sector in Bangladesh, reports BSS.
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"This visit is a milestone," said Ambassador Yao Wen, emphasising the potential for further Chinese investments in Bangladesh's manufacturing sector. Ashik Chowdhury, Executive Chairman of the Bangladesh Investment Development Authority, expressed optimism that the visit would spur a surge of Chinese investments.
On Friday, Prof Yunus and Ashik Chowdhury briefed officials of more than 100 Chinese companies, including some of the biggest in the world, to invest in manufacturing in Bangladesh, especially in advanced textiles, pharmaceuticals, light engineering and renewables.
They spoke in three interactive sessions in Beijing.
MoUs signed
Apart from the economic cooperation pact, eight Memorandums of Understanding (MoUs) were signed on:
- Translation and production of literary classics
- Cultural heritage exchanges and cooperation
- Media and news exchange
- Sports and health collaboration
Additionally, five announcements were made, including the formal commencement of negotiations on a China-Bangladesh Free Trade Agreement, the establishment of the China Industrial Economic Zone, and plans for Mongla Port expansion. Both sides reaffirmed cooperation in hydrological data sharing and water resource management for the Yarlung Zangbo-Jamuna River.
Bangladesh invited Chinese companies to join the Teesta River Restoration Project and emphasised strengthening trade agreements to boost exports, particularly of fresh mangoes and aquatic products.
Yunus-Xi strategic bilateral talks
At the Great Hall of the People, President Xi and Chief Adviser Yunus engaged in discussions to strengthen bilateral relations, expand trade, and enhance strategic cooperation. Xi highlighted China's willingness to relocate Chinese manufacturing enterprises to Bangladesh and encourage further private investments.
The meeting also covered infrastructure development, renewable energy, and the Rohingya crisis. Yunus urged China to take a stronger role in ensuring the safe and dignified repatriation of Rohingya refugees to Myanmar. President Xi expressed his continued support for Bangladesh's interim government and economic growth initiatives.
Bangladesh seeks 50-year water management plan
During a separate meeting with China's Water Resources Minister Li Guoying, Chief Adviser Yunus sought a long-term master plan for water and river system management in Bangladesh. He acknowledged China's expertise in flood control and river management, emphasising Bangladesh's need for a sustainable approach to protect its delta-based ecosystem.
"Water is both a source of life and a challenge for Bangladesh. We seek China's guidance in developing a long-term strategy," Yunus stated.
The Chinese minister affirmed China's willingness to provide technical expertise, acknowledging the shared challenges both nations face in water resource management.
Strengthening ties for the future
Bangladesh and China committed to enhancing cooperation in culture, tourism, education, healthcare, and youth exchanges. The two nations will jointly celebrate the 50th anniversary of diplomatic ties and the 2025 Year of China-Bangladesh People-to-People Exchanges.
As Bangladesh strengthens its economic and diplomatic ties with China, the agreements signed during Yunus' visit are expected to drive long-term investment and development, marking a significant chapter in bilateral relations.
