Dhaka to seek budget support, quick loan disbursement from China: Foreign adviser

Bangladesh will explore how China can provide budgetary support and accelerate project loan disbursements, Foreign Affairs Adviser Md Touhid Hossain said just before leaving for China on a three-day visit.

"Economic issues will dominate discussions with China as Bangladesh's trade and economic relations with it are vital," he stated during a pre-departure briefing on Monday (20 January). 

Touhid departed for China for a three-day trip on the invitation of his Chinese counterpart Wang Yi, reads a foreign ministry press statement. He will return on 24 January. 

Key priorities for the upcoming visit include renegotiating loan terms, such as reducing interest rates from 2-3% to 1%, waiving commitment fees, and extending grace periods from 15 to 30 years, according to a foreign office official.

Bangladesh will also seek duty-free access for its products after 2026, increased Chinese investment, and higher exports to China. A formal request for a complete waiver of commitment fees will be submitted.

Additionally, exchanging hydrological information, advancing cooperation in medical treatment, and encouraging greater Chinese involvement in resolving the Myanmar situation will also be key priorities, reports BSS.

Foreign relations experts are seeing it as a "very important first bilateral visit" since the interim government led by Prof Muhammad Yunus assumed office in August last.

Chinese Ambassador in Dhaka Yao Wen has hinted that Beijing is ready to sign an implementation plan on hydrological information exchange, fulfilling a previous request from Dhaka.

Discussions on China's potential role in Bangladesh's crucial Teesta River project are also expected to feature prominently during the visit. 

The foreign adviser's decision to prioritise China for his first bilateral visit marks a shift from previous practices, where India was often the initial destination. 

Alongside talks with the Chinese foreign minister, the adviser will meet Chinese Communist Party leaders, deliver speeches at key institutes, and engage with business representatives in Shanghai to attract investments in Bangladesh. 

On Sunday, Chinese Ambassador Yao briefed the adviser on key issues, reaffirming China's respect for Bangladesh's sovereignty and support for its stability, reforms, and development initiatives, according to foreign ministry officials.

Celebrating 50 years of Dhaka-Beijing relations

The visit coincides with the 50th anniversary of Dhaka-Beijing diplomatic ties, as China recognised Bangladesh on 31 August, 1975. Both countries have planned year-long celebratory events to commemorate this milestone. 

During the visit, announcements regarding these 50th-anniversary programmes are anticipated.
The foreign adviser said the trip would enhance mutual understanding, friendship, and a vibrant partnership between the two nations, advancing strategic and technical cooperation.

Focus on the Rohingya issue

China has long been playing a mediating role in the Rohingya crisis between Bangladesh and Myanmar, although no resolution has been achieved. The Rohingya issue is expected to be a major topic of discussion during this visit.

Touhid informed the Chinese envoy on Sunday that Dhaka anticipates a "very strong" and "proactive" role from China in facilitating the repatriation of Rohingyas to Myanmar, where they were forced to flee persecution. 

Health cooperation

The foreign adviser is expected to request that China designate at least 3 to 4 top-tier hospitals in Kunming, close to Bangladesh, for improved medical treatment of Bangladeshi citizens.

Hossain also indicated that Bangladesh is prepared to provide land and logistical support for establishing a full-fledged tertiary-level Chinese hospital in Purbachal, on the outskirts of Dhaka.

Addressing trade imbalance

China remains Bangladesh's largest trading partner, with imports from China amounting to $24 billion annually, compared to exports of only $670 million.

Despite 100% duty-free access to the Chinese market, Bangladesh's exports remain low, resulting in a significant trade imbalance. 

Addressing this disparity will be a key agenda item during the adviser's discussions in Beijing, said the officials familiar with the visit.