Bangladesh-China relations: Overcoming uncertainties, moving forward

During the 15 years of Awami League rule, alongside close ties with India, relations with China had grown quite strong too. These relations had strengthened further particularly after the 2016 visit of the Chinese president Xi Jinping. And in continuity to these relations, the proximity between Awami League and the Communist Party of China (CPC) was no secret either.

Under such circumstances, China had a certain sense of uncertainty and hesitation concerning its ties with Bangladesh after the July mass uprising. China had been concerned about the safety of its people involved in various mega projects in Bangladesh.

There are clear indications that the uncertainty and hesitation in Dhaka-Beijing ties cleared up to a great extent with the recent China visit by the interim government's foreign advisor Touhid Hossain. China's Communist Party leader and foreign minister Wang Yi directly said Bangladesh has an importance place on their neighbourhood diplomacy. And also that Beijing will fully respect Bangladesh's independence, sovereignty and the aspirations of its people.

This is the first time that Beijing has publicly stated that Bangladesh features importantly in its neighbourhood diplomacy. This is a significant statement in the changed global circumstances as well as changes in Bangladesh, and the prevailing geopolitical situation, even though China and Bangladesh have no common border. This statement reflects China's desire to maintain close ties with Bangladesh in continuity to relations spanning over five decades.

Also during Touhid Hossain's China visit, there was talk of certain pragmatic steps regarding a new start to the relations that have stepped into the 51st year. This is clear in the decisions to assist Bangladesh's flagging health sector to take services to people's doorsteps, increasing trade between the two countries by means of relocating industries and providing significant credit concessions.

Analysts say that from a futuristic angle, Touhid Hossain's China visit can be seen as adding a new dimension to Dhaka-Beijing relations, clearing away any existing dilemmas. Certain pragmatic decisions were taken during this trip. There is a strong message of China's political support for Bangladesh. But strategic changes have emerged in Beijing-Washington relations after the change in the US power scene and this will spill over to other countries. And so Bangladesh will have to maintain a sort of balance, keeping a distance from the conflict between two superpowers like China and the US.

Speaking in an interview with China Media Group Bangla during his China visit, Touhid Hossain said every government of Bangladesh has maintained good relations with China. And in continuity of that, the present interim government also places importance on relations with China. He said, "I managed to explain (to the Chinese government) that we are an interim government and may not stay long in power. Whatever decisions we make to take relations forward, will be followed by the next government. It is important to maintain this continuity in relations. I feel I have been able to make the Chinese authorities understand this."

Fresh assistance for health services was discussed in talks between Touhid Hossain and Chinese foreign minister Wang Yi, CPC international department minister Liu Jianchau and chairman of China International Development Cooperation Agency (CIDCA) Luo Zhaohui. China welcomes Bangladesh's proposal to set up a thousand-bed Bangladesh-China Friendship Hospital in Purbachal, Dhaka. The first friendship hospital of the two countries to be set up with Chinese funding will be run by Chinese specialists. As it will take a few years to construct and complete the hospital, Dhaka requested that at least four hospitals in Kunming, China, be specified for treatment of patients from Bangladesh. China responded positively to this request. China assured that if necessary, a few specialised hospitals in Chengdu, next to Kunming, will provide treatment for Bangladeshi patients.

Foreign advisor Touhid Hossain had detailed discussions with the CIDCA chairman Luo Zhaohui on the projects in Bangladesh funded by China. He requested the CIDCA chairman to reduce the rate of interest of Preferential Buyer's Credit (PBC) and the Government Concessional Loan (GCL) from 2-3 per cent to 1 per cent and to extend the repayment period from 20 years to 30 years. He also requested for the commitment fee and management fee on Chinese loans to be written off.

The CIDCA chairman said they have extended the time for repayment and will consider further concessions in interest rates. Touhid Hossain requested increased Chinese funding in future CIDCA projects to be implemented in Bangladesh.

Speaking to diplomatic sources in Beijing, it was confirmed that China's foreign minister Wang Yi had in principle agreed to extend the loan repayment time for Bangladesh, but not on all projects. China will take the decisions to reduce interest rates, extend repayment time and increase the rate of project funds in accordance to the projects.

From last September China has been talking about relocating industries to Bangladesh. This matter featured importantly during this trip too. To this end, Touhid Hossain visited an electric vehicle, robotics and agricultural processing plant in Shanghai. Talks were also held with Shanghai's business chamber in this regard.

Speaking to Touhid Hossain in Beijing, CPC's international department minister Liu Jianchau said China must relocate its industries. The matter of China relocating industries to Vietnam also arose during the talks. Chinese leaders consider Bangladesh suitable for relocation of their industries because the facilities to manufacture products in Bangladesh and export these to other countries the matter of incentives in exports, will be beneficial to China.

China Southern Airlines, one of China's three largest airline companies, wants to sell 10 of its aircraft. China has already contacted Bangladesh regarding the procurement of these used aircraft at discounted rates. This matter was raised at talks during this trip. China will sell these aircraft to Bangladesh on credit and grant funds released by CIDCA. The matter will be sorted out after talks between the Civil Aviation Authority and Southern Airlines.

Touhid Hossain visited China at a time when Bangladesh is focused on reforms and a progression to democracy. Naturally Wang Yi and Liu Jianchau wanted to know about the political situation in Bangladesh during talks with Touhid Hossain. The foreign advisor apprised them about how Professor Yunus' interim government wanted to carry out reforms, the latest update in this regard and the plans concerning the election.
The Chinese leadership emphatically stated they respected the views of the Bangladesh people. They had no desire to interfere in Bangladesh's affairs. China was working in close collusion with the past government in Bangladesh, and is working with the present interim government too. It is in contact with BNP, Jamaat-e-Islami and the other parties too.

Speaking to Prothom Alo in this regard, president of Bangladesh institute of Peace and Security Studies (BIPSS) Maj Gen Muniruzzaman (retd) said, China has expressed a positive mindset concerning relations with Bangladesh. The possibility of massive change in the country's dilapidated health sector with Chinese assistance has come forward. The opening of health tourism with Kunming may curtail dependence on India for health services. However, he cautioned that Bangladesh must be alert against getting caught up in the conflict of superpowers due to the US-China equation.