PM Tarique
Rahman state visit to China in late June
Humaira Binte Kabir
Chinese investments and soft loan, renewable energy, Chinese economic zone, Tessta barrage, Build, Road and Initiative (BRI) civil and military cooperation, Rohingya crisis, and civil war in Myanmar are likely to dominate Dhaka-Beijing talks during Prime Minister’ Tarique Rahman state visit to China maiden overseas state visit to China either in late June, sources in Dhaka and Beijing said.
As Japan, China, South Korea are major development partners
of Bangladesh in construction of roads, bridges and economics zones, Dhaka is
expected to seek increased Beijing’s multilateral and economic involvement
during Prime Minister’ Tarique Rahman state visit to China first overseas state
visit to China either in June or July, sources in Dhaka and Beijing said.
Prime Minister’ Tarique Rahman’s planned visit to China is
set to strengthen the deep understanding, friendship, and vibrant partnership
shared by both nations, signaling a renewed commitment to advancing their
strategic cooperation
During his visit to Beijing, Prime Minister’ Tarique
Rahman’s will meet Chinese President Xi Jinping, and different stakeholders to
discuss the political, strategical, economic and cultural issues.
After taking oath on February 17, 2026, Tarique Rahman set
to enter on maiden state visit to China with a mission to reach the
Dhaka-Beijing relations to a new height, sources in Dhaka and Beijing said.
Local Government, Rural Development and Co-operatives
Minister of Bangladesh Mirza Fakhrul Islam Alamgir, Foreign Minister Dr.
Khalilur Rahman, Finance Minister Amir Khasru Mahmood Chowdhury, Prime
Minister’s Foreign Affairs Adviser Humayun Kabir, Foreign Secretary Asad Alam
Siam, are expected to be among others, in the delegation of Prime Minister’s
visit to China.
A top foreign minister official said that Bangladesh will
maintain balance relations with three powers—India, China and USA--on strategic
grounds. "Bangladesh holds interests in all countries, and it's crucial
for us to remember this," he said.
He highlighted the trade relations between India and China, despite their differences, as well as India's close ties with the US, and stressed that it is important for Bangladesh to maintain good relations with all these three countries.
As USA President Donald Trump visited China in recent times,
Dhaka is likely to get relaxed environment to negotiate with Beijing in the
next couple of years as USA will look at revamping the US economy cutting US
involvement over overseas issues, sources in Dhaka, Beijing and Washington said
This visit, announced by diplomatic sources in both Dhaka
and Beijing, comes at a critical time amid ongoing global tensions such as the
Russia-Ukraine conflict and the turmoil in the Middle East, major political
change in Bangladesh and tension between Dhaka and New Delhi after the ouster
of dictator Prime Minister Sheikh Hasina on August 5, 2024
According to a highly-placed Bangladeshi diplomat, this
visit aims to deepen Bangladesh's ties with China, the world’s second-largest
economy. In the context of these international conflicts, strengthening
bilateral relationships becomes all the more crucial for both nations.
This visit comes at a critical time amid ongoing global
tensions such as the Russia-Ukraine conflict and the turmoil in the Middle East
due to Israeli actions in Gaza.
According to a highly-placed Bangladeshi diplomat, this
visit aims to deepen Bangladesh's ties with China, the world’s second-largest
economy. In the context of these international conflicts, strengthening
bilateral relationships becomes all the more crucial for both nations.
A political expert highlighted that political leaders from
the USA, India, and EU countries have frequently expressed concerns over
Bangladesh's growing dependence on China. Following the World Bank, Asian
Development Bank, USA, and Japan, China has become a major source of loans for
Bangladesh's development projects. Furthermore, Bangladesh’s defense
cooperation with China remains a significant concern for India and Western
countries.
During his visit, Prime Minister Tarique Rahman and Chinese
leaders are expected to engage in discussions covering a wide range of issues.
These will include trade, investment, mid and long-term loans, Belt and Road
Initiative (BRI) projects, various Chinese investments, the Rohingya crisis,
and the civil war in Myanmar. Such comprehensive dialogue aims to address and
bolster the multifaceted relationship between the two countries.
Sources indicate that Bangladesh may seek a special economic
package from China to mitigate the macroeconomic pressures facing the country.
The civil war in neighboring Myanmar and the influx of 1.1 million Rohingya
refugees into Bangladesh have severely impacted the country’s social fabric.
Consequently, Dhaka is expected to request Beijing's active
initiatives in resolving this crisis. Additionally, Bangladesh will address the
significant trade imbalance with China, urging Chinese entrepreneurs to invest
in promising sectors. Currently, China is Bangladesh’s largest trading partner.
In the 2022-23 fiscal year, Bangladesh exported goods worth $610.14 million to
China, while imports from China totaled $17,826.6 million, resulting in a trade
deficit of over $19 billion.
According to the Chinese Enterprises Association in
Bangladesh (CEAB) President Han Kun, the next stage of BRI engagement will
centre on sustainability, shared financing and broader participation from
private actors - moving beyond the perception that BRI is solely a China-funded
framework.
In an exclusive interview with the state owned national news
agency BSS, Han said misconceptions about BRI remain particularly the
assumption that China alone finances all major projects. "That is a
misunderstanding," he said. "BRI is a bilateral cooperation
framework, not a one-way initiative where China alone spends money. It is meant
to be mutually beneficial, involving both governments, private investors, and
businesses from all sides,"
He said that more than 140 countries have already joined the
initiative, making it unrealistic for any single nation to shoulder the full
financial burden.
"China's economy is strong, but even then it can't fund
all projects in all participating countries. For sustainability, investment has
to be shared, benefits have to be shared, and project selection has to be
pragmatic," he said.
Bangladesh formally joined the Belt and Road Initiative in
2016, opening a new chapter in bilateral cooperation. Since then, major
infrastructure projects - including bridges, power plants, tunnel and road
networks - have been undertaken with various forms of Chinese financing,
ranging from concessional loans to commercial and private investment.
In 2016, during President Xi's visit to Bangladesh, both
nations signed a series of Memorandum of Understanding (MoUs) and agreements,
promising $26 billion in BRI projects and $14 billion in joint ventures,
amounting to a $40 billion package. BRI projects in Bangladesh have primarily
focused on energy and transportation, with infrastructure investment needs
projected to reach 1.5% of GDP by 2040. This substantial investment highlights
the strategic importance of Bangladesh in China’s BRI plans and the mutual
benefits both countries seek to achieve through these collaborations.
The Economic Relations Division (ERD) recently held an
inter-ministerial meeting to evaluate the loans' pros and cons, ensuring that
the financial terms align with Bangladesh’s economic needs and repayment
capabilities.
China currently ranks fourth among the 32 countries and
organizations lending to Bangladesh, with Chinese loans representing nearly 10%
of the total loans received annually by Bangladesh. Over the last two years,
this amount has exceeded $1 billion annually. Of the total loans provided by
China, $3 billion has been granted in the last four years, indicating a growing
financial relationship between the two nations.
To alleviate pressure on its depleting reserves, which stood
at $19.95 billion as of April 30, Bangladesh Bank allowed the settlement of
international trade in Chinese yuan in September 2022. This move aims to reduce
reliance on the dollar, thereby diversifying the currency mix and mitigating
exchange rate risks. This strategy is part of a broader effort to stabilize
Bangladesh's economy amid global financial uncertainties.
Amid these developments, Chinese Ambassador in Dhaka, Yao
Wen, underscored the significance of Prime Minister’s visit for promoting
trade, investment, and cultural exchange. This aligns with Bangladesh's Vision
2041 and the goal of realizing a "Smart Bangladesh." He emphasized
that the early signing of a China-Bangladesh Free Trade Agreement (FTA) would
usher in a new era of economic and trade cooperation, describing it as a
transformative step for both countries.
The feasibility study report indicates that the FTA will
reduce tariffs on Chinese goods imported into Bangladesh, potentially lowering
import prices and alleviating inflation. This reduction in raw material costs
could enhance the competitiveness of Bangladeshi products in the international
market, supporting an increase in foreign exchange reserves. Furthermore, the
FTA is expected to facilitate Chinese investment in Bangladesh, creating
employment opportunities, promoting industrial upgrades, and diversifying
exports.
Earlier this year, Bangladesh successfully held its general
election on February 12. 2026, and the new government's top priority is stable
economic development and graduating from the Least Developed Countries (LDC)
status.
The repayment terms of Chinese loans, typically 10-15 years
excluding the grace period, pose challenges, with high annual principal
payments compared to loans from institutions like the World Bank. Zahid
Hussain, former lead economist at the World Bank's Dhaka office, commented on
China's efforts to bolster the yuan's reliability in global trade and the
potential benefits of such loans, provided the conditions are favorable. He
noted that while loans in yuan could reduce pressure on dollar reserves, the
terms and conditions of these loans need to be carefully evaluated to ensure
they are advantageous for Bangladesh.
Meanwhile, China has expressed appreciation for Bangladesh's
interest in joining BRICS and assured active support. This commitment was
reiterated during the 13th round of bilateral political consultations between
Bangladesh and China in Beijing. The consultations focused on enhancing
bilateral relations, economic ties, trade, and investment cooperation on
multilateral platforms. Both nations emphasized the importance of high-level
exchanges and people-to-people connectivity.
According to the Economic Relation Division (ERD) of
Bangladesh, during 1999--2000-2023-24, China committed foreign aid valued at
10291.884 million US dollars to Bangladesh and disbursed 6541.983 million US
dollars during the same period. However, China committed to disburse 146.34
million US dollars as grants and disbursed 146.34 million US dollars. China
promised to give Bangladesh 7253.162 million US dollars as official development
assistant (ODA), disbursed 3752.115 million US dollars and repaid 261.633 US
dollars.
Meanwhile, during the visit, Bangladesh will urge Beijing to
speed up the construction of the Chinese Economic and Industrial Zone (CEIZ) in
Chattogram since the Bangladesh Economic Zones Authority (Beza) first took the
initiative to build the enclave in a bid to attract foreign investment.
The long-delayed Chinese Economic and Industrial Zone in
Chattogram's Anwara is expected to enter the implementation stage by June, with
the Bangladesh Economic Zones Authority (Beza) hoping to finalise a developer
agreement after key negotiations with the Chinese side enter their final phase.
The Chinese Economic and Industrial Zone, or CEIZ, is being
developed on nearly 783 acres in Anwara, under a government-to-government
arrangement. Despite its large investment potential, the project has remained
stalled for more than nine years because no developer agreement has yet been
signed.
According to officials, the project was delayed for several
reasons. Initially, China Harbour Engineering Company was expected to undertake
the infrastructure development work. However, the failure to reach an agreement
with the company resulted in several years of delay.
Later, in 2022, the Chinese government nominated China Road
and Bridge Corporation as the new developer.
Meanwhile, Chinese Ambassador in Dhaka Yao Wen underscored
the importance of strengthening economic and strategic cooperation, with a
particular focus on projects like the China Economic Zone in Chattogram and the
enhancement of connectivity initiatives.
He also emphasized the importance of practical bilateral
cooperation, particularly in sectors such as digital connectivity and port
modernisation.
Regional and global issues also will be featured in the
discussions, notably the ongoing Rohingya crisis.
Meanwhile, a senior career diplomat who has worked in
Washington DC, Seoul, Paris and Canberra said “China, India and the US are
three major partners of Bangladesh. These three countries occupy maximum space
of Bangladesh’s diplomatic efforts, and also play key role in determining
Bangladesh’s place in the international community.
It's a vexing issue with long standing anomalies that
remained unresolved mostly on our side. Coteries of Manpower export
establishment, corrupt private companies and in public sector have remained
responsible but untouched by initiatives take time to time by the
government. All these are known to you.
Therefore, I regret to say that a short, simple answer to your question seems
not possible. Said a diplomat
