Relations with China should be considered holistically

The future of relations with China should be viewed holistically, taking into account the post-revolutionary situation, in the context of the significant political change in the history of Bangladesh.

Bangladesh wants to put emphasis on defence and economic cooperation for the interests of the future of the relationship between the two countries.

Besides, it is also necessary to reevaluate the various conditions of Chinese loans taking into account the current financial crisis in the country.

Experts made such remarks in a discussion on the future of Bangladesh-China relations at a hotel in the capital on Monday.

Bangladesh Institute of International and Strategic Studies (BIISS) and Centre for China Studies (SIIS-DU) jointly organised the discussion with the help of the Chinese embassy in Dhaka.

Addressing the opening session of the seminar as the chief guest, foreign affairs adviser Md Touhid Hossain said that Bangladesh has witnessed the most significant political change in its history. As a result, the future of Bangladesh-China relations in the post-revolutionary context must be taken into consideration from a wider perspective.

He further said the course of Bangladesh and various other factors, especially in the post-revolution situation, may impact the relationship with China.

Political stability in Bangladesh and the changing context of regional and global politics are included among those factors.

Hinting that the interim government wants to continue defence cooperation between Bangladesh and China, Touhid Hossain said, defence is an important element of the relationship between the two countries.

He mentioned that China is an important supplier of arms to Bangladesh. China also trains members of the armed forces of Bangladesh. Bangladesh wants more defence cooperation from China to modernise the army in the future.

In his speech, the foreign adviser put emphasis on the removal of non-tariff barriers for Bangladeshi products in the Chinese market in order to eliminate the trade imbalance between the two countries.

It is important to reevaluate the Chinese loan conditions in the context of the current economic pressure in Bangladesh, he pointed out.

Speaking about the trade deficit between the two countries, Touhid said, “It would be better for us if it is possible to increase exports to China through Chinese investment in Bangladesh. Some projects are going on with the help of China and we hope to have an impact on the country’s economy.”

Stating that China and others are helping on the Rohingya issue, the foreign adviser said, “Unfortunately, such initiatives have not yet brought any results. I think China has an influence over Myanmar and that is a reality. China should play a greater role in this matter so that the Rohingyas can return to their country with their rights and safety.”

Head of the National White Paper Drafting Committee and honorary fellow at Centre for Policy Dialogue (CPD), Debapriya Bhattacharya, also spoke at the event.

He said trade does not depend only on market facilities. Its expansion also depends on the process.

"That is why, we have to take into consideration the issue of non-tariff barriers for the sake of the future of relations in getting 100 per cent benefits for the Bangladeshi products in the Chinese market," Debapriya Bhattacharya.

Putting emphasis on bringing changes in the process of Chinese loans to Bangladesh, he said that if you look at Bangladesh’s foreign loans, you will see that about US $5.6 billion will go to China. It is about 10 per cent of Bangladesh’s total foreign debt. As a result, debt repayment has become a growing challenge for Bangladesh.

Debapriya further said Chinese debt includes supply debt, which has a shorter repayment period. The grace period is also less. Besides, the terms are stricter and commitment charges are higher. It should be considered if there are opportunities to bring changes in those in the future.

He pointed out that the Karnaphuli tunnel will not be financially sustainable unless there is proper Chinese investment in the designated specialised industrial zone for China in Anwara of Chattogram.

More transparency should be brought for the sake of future relations between the two countries, he argued.

Addressing the discussion, Chinese ambassador Yao Wen said Bangladesh has recently experienced a significant political change and is now at an important historical juncture. China, as an integrated strategic cooperative partner of Bangladesh, firmly supports the interim government in its efforts to reform the state, maintain law and order, promote economic development and improve people’s lives.

Chairman of the Bangladesh Institute of Strategic and International Studies' board of governors FM Gousal Azam Sarker presided over the event. Professor Yang Jiemian of Shanghai Institute for International Studies and BIISS director general Major General Iftekhar Anis also spoke.