China scales up ties with Bangladesh govt with extension of loan repayments, duty free access offers

This was the first time the Chinese side invited a large-scale, cross-sectoral delegation from the country for an official visit, a major diplomatic development in China-Bangladesh relations.

Beijing: A 21-member cross-sectoral delegation from Bangladesh ended their 10-day visit to China on Thursday calling for closer ties between the two countries as Beijing wooed the interim government in Dhaka with loan repayment extensions and duty free imports.

The delegation headed by Abdul Moyeen Khan, a senior leader of the opposition Bangladesh National Party (BNP), visited China at the invitation of the ruling Communist Party of China (CPC).

This was the first time the Chinese side invited a large-scale, cross-sectoral delegation from the country for an official visit, which has been described as "a major diplomatic development" in China-Bangladesh relations, state-run Global Times reported.

Given Bangladesh's current political shifts and socio-economic challenges, they believe that sustaining stable cooperation with China, especially under the Belt and Road Initiative (BRI), will help build a more stable and prosperous future for their country, the report said, quoting the delegates comprised of members of political parties, student leaders, scholars, and journalists.

The delegation, which included Adviser for Foreign Affairs Touhid Hossain and hardline Islamic parties, including the Jamaat-e-Islami, was hosted by China after the fall of the Sheikh Hasina government.

During Hossain's visit in January, China agreed to extend Bangladesh’s loan repayment period, ensure duty-free, quota-free market access for Bangladeshi products, and designate hospitals in Kunming for Bangladeshi patients’ treatment, bolstering bilateral ties, according to Bangladesh's state-run news agency BSS.

Beijing also assured to consider Dhaka’s request to reduce the interest rate of Chinese loans to Bangladesh.

The assurances were given after Hossain met with Chinese Foreign Minister Wang Yi on January 21, the news report said.

On the sidelines of the meeting, Bangladesh and China signed an instrument titled ‘Implementation Plan of the MoU on Exchange of Hydrological Information Sharing of the Yarlung Tsangpo-Jamuna River’.

The Brahmaputra River in Tibet is known as the Yarlung Tsangpo.

According to Bangladesh media reports, Hossain requested China to reduce interest rate from 2-3 per cent to one per cent, waive commitment fee and extend loan repayment period from 20 years to 30 years for both the Preferential Buyer’s Credit (PBC) loan and Government Concessional Loan (GCL).

Praising Bangladesh’s good track record in loan repayment, Wang agreed in principle to extend the loan repayment period and assured to look into the request for the interest rate reduction, the reports said.

According to the Economic Relations Division or ERD, Bangladesh's debt to China stood at over USD 5.57 billion, around nine per cent of total debt.

Hossain was the highest-level interim government official to visit China after the fall of Prime Minister Sheikh Hasina's regime in August last year following massive protests.

Her government was replaced by an interim government headed by Nobel Peace Prize-winning economist Muhammad Yunus.

Days ahead of the protests, Hasina visited China on an official visit and held talks with President Xi Jinping.