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Bangladesh-China ties : strategic realities
Dr. Abdul Ruff Colachal, Bangladesh
NFB - July 27 2007
A large Chinese economic and trade delegation led by Chinese Assistant Minister of Commerce Wang Chao arrived in Dhaka on 21 July for a three-day visit after visiting Pakistan and left for Nepal on July 24.
Wang Chao said that China pays a lot of attention to economic relations and trade cooperation with Bangladesh. The Chinese minister also noted the imbalance and promised to narrow the gap. Wang said the 39-member delegation he led would purchase Bangladesh goods worth over $50 million. It is the biggest purchase delegation ever to Bangladesh with over 10 companies listed in China's top 500 and some of them in world's top 500 companies, he added. . The total trade volume between China and Bangladesh almost doubled, up to $3 billion, making it Bangladesh's second biggest trade partner after India. The Chinese suggest that Bangladesh has to improve infrastructure to foster the investment climate.
Visiting representatives of the Chinese companies signed contracts worth about $53 million with Bangladeshi firms later Sunday, mainly to purchase leather, jute products and seafood.
China and Bangladesh also signed an agreement on Economic and Technical Cooperation, which provides 100 million RMB (about $13.2 million) to Bangladesh with 80 million RMB (about $10.5 million) as non-reimbursable assistance and the left as an interest-free loan. According to the agreement, the two sides decided to build a Bangladesh-China Friendship Exhibition Centre in Dhaka.
China and Bangladesh have committed to promote bilateral economic relations, narrow the trade imbalance and to encourage investment between the two countries. The trade between the two Asian countries reached a record level of about $3.19 billion in 2006, 28.5 percent higher than the previous year. However, both sides feel that Bangladesh's export to China amounted to only about $98.8 million - indicating a huge negative balance of trade between the two countries. Wang Chao and Bangladeshi Finance and Commerce Advisor Aziz-ul-Islam expressed their desire to encourage bilateral relations during a meeting here on 22 July. Islam said the two countries had achieved a breakthrough in trade relations with a rapid growth of mutual trade.
China had granted tariff-free access to 84 Bangladeshi items within the framework of the Asia-Pacific Trade Agreement (AFTA) and hoped more items like jute products, leather and textile will enjoy duty free access in the future. Dhaka has invited more Chinese investment in Bangladesh in sectors like power, infrastructure, construction and electrical products, promising that the Bangladesh government would provide a fair and equal environment. Bangladesh enterprises were welcome to invest in China and to attend the Guangzhou Chinese Import and Export Commodities Fair to show Bangladesh's various products to Chinese people, Wang said. China would provide free stalls in the annual fair to developing countries including Bangladesh, he said.
Friendly relations between the two countries have been developing soundly and smoothly since the establishment of diplomatic relations between China and Bangladesh in 1975. On the basis of the five principles of peaceful co-existence and in accordance with mutual benefits, China and Bangladesh have forged all-round and multi-faceted exchanges and cooperation in politics, economy, trade, culture, science and technology, with outstanding achievements.
The Defence Co-operation Agreement was signed between Bangladesh and China during the visit of Bangladesh Prime Minister, Begum Khaleda Zias visit to China from December 23 to 27, 2002.Bangladeshs Armed Forces today are predominantly equipped with Chinese military hardware. The Bangladesh Armys tanks and light tanks are of Chinese origin. The Bangladesh Navys frigates and patrol crafts are mostly Chinese. The Bangladesh Air Force's combat aircraft are all Chinese. Bangladesh has plans to expand, upgrade and modernize her armed forces. The emphasis on to enhance cooperation in training, maintenance and some areas in defence production, but India said that China gets a strategic toe-hold on Indias Eastern flank in Bangladesh. Chinas naval intrusions are facilitated by Bangladesh into the Bay of Bengal area
China as the most intrusive external power in South Asia would be well served by its Defence Cooperation Agreement with Bangladesh. India cautioned Bangladesh on Pakistani terrorist network in that country, as it has done to Russia and other friendly states to isolate Pakistan in the region. But Bangladesh seems to have taken out an insurance policy from China to cater for increased threat perceptions in the India-specific context. General Musharrafs visit to Bangladesh in October 2002, his tentative apology for the 1971 Pakistani genocide of the Bengalis and the mutual discussions centering around Pakistans perceptions of Indias military escalation would have helped in Musharrafs exaggerating Bangladeshs strategic concerns.
Both Bangladesh and China have dense populations and, therefore, share a number of similar challenges. Bangladesh could learn from China's innovations and speed of economic development to push up living standards. Wu said China and Bangladesh enjoy traditional friendship and the cooperation between the two sides has been progressing smoothly during the past years. Chinese and Bangladeshi top lawmakers agreed in Beijing Tuesday to further parliamentary exchanges to deepen the friendly cooperation between the two countries. In April 2005 during an hour-long meeting with Speaker of the Bangladeshi National Assembly Jamiruddin Sircar met Wu Bangguo, chairman of the Standing Committee of the National People's Congress. He also expressed China's appreciation to Bangladesh for its support on the issues of Taiwan, Tibet and human rights.
Indias hegemonistic designs on Bangladesh have been felt by Dhaka. India keeps blaming as a routine matter that Bangladesh offers Pakistan a fertile ground for basing its proxy war apparatus to strategically discomfit India ion its East and North East peripheries. This arises from common religious links and shared heritage of its intelligence and military establishments with those of Pakistan and that that China did not accord diplomatic recognition to Bangladesh till 1975 i.e. nearly four years after the emergence of Bangladesh as a sovereign state. It can be said that Chinas relations with Bangladesh were being determined by Pakistans considerations.
Political and strategic realities soon took over and China made serious attempts to wean over Bangladesh from Indias influence. India is equally "worried" that China had earlier outflanked United States strategic interests in the Gulf region by its strategic nexus with Pakistan. China, accordingly, can now outflank United States strategic interests in South East Asia by reinforcing the defense cooperation with Bangladesh into a strategic nexus. But the strategists in Washington only could have hearty laugh at New Delhis concerns for USA in the region.
Along side the Chinese ties, Dhaka is also ensuring the US support to offset any move from Indian side. Bangladesh Armed Forces personnel were participating in US Pacific Commands training events and the US Marines had carried out familiarization exercises in Bangladesh. On the economic front, the United States had been more than generous towards Bangladesh.
Some critics warn the policy and decision-makers in Bangladesh to make sure the guarantee of Beijing assistance and to ponder long and hard whether China can provide the strategic insurance it seeks against India. They even cite that Chinas record of support to Pakistan in the Indo-Pak wars of 1965 and 1971 are an ample pointer to the efficacy of its military insurance with China. But, for Dhaka the new scenario emerging in South Asia following the end of the so-called Cold-war needs to be treated quite differently and Chinas bond with Bangladesh is un-doubtable and positively secured. The results of the recent visit to Dhaka by the Chinese delegation endorse that view with clarity.
---------------------------------------------
Dr. Abdul Ruff Colachal is a Research Scholar,
School of International Studies
Jawaharlal Nehru University, New Delhi
http://www.bangladesh-web.com/view....&hidType=EDT&hidRecord=0000000000000000166904
Dr. Abdul Ruff Colachal, Bangladesh
NFB - July 27 2007
A large Chinese economic and trade delegation led by Chinese Assistant Minister of Commerce Wang Chao arrived in Dhaka on 21 July for a three-day visit after visiting Pakistan and left for Nepal on July 24.
Wang Chao said that China pays a lot of attention to economic relations and trade cooperation with Bangladesh. The Chinese minister also noted the imbalance and promised to narrow the gap. Wang said the 39-member delegation he led would purchase Bangladesh goods worth over $50 million. It is the biggest purchase delegation ever to Bangladesh with over 10 companies listed in China's top 500 and some of them in world's top 500 companies, he added. . The total trade volume between China and Bangladesh almost doubled, up to $3 billion, making it Bangladesh's second biggest trade partner after India. The Chinese suggest that Bangladesh has to improve infrastructure to foster the investment climate.
Visiting representatives of the Chinese companies signed contracts worth about $53 million with Bangladeshi firms later Sunday, mainly to purchase leather, jute products and seafood.
China and Bangladesh also signed an agreement on Economic and Technical Cooperation, which provides 100 million RMB (about $13.2 million) to Bangladesh with 80 million RMB (about $10.5 million) as non-reimbursable assistance and the left as an interest-free loan. According to the agreement, the two sides decided to build a Bangladesh-China Friendship Exhibition Centre in Dhaka.
China and Bangladesh have committed to promote bilateral economic relations, narrow the trade imbalance and to encourage investment between the two countries. The trade between the two Asian countries reached a record level of about $3.19 billion in 2006, 28.5 percent higher than the previous year. However, both sides feel that Bangladesh's export to China amounted to only about $98.8 million - indicating a huge negative balance of trade between the two countries. Wang Chao and Bangladeshi Finance and Commerce Advisor Aziz-ul-Islam expressed their desire to encourage bilateral relations during a meeting here on 22 July. Islam said the two countries had achieved a breakthrough in trade relations with a rapid growth of mutual trade.
China had granted tariff-free access to 84 Bangladeshi items within the framework of the Asia-Pacific Trade Agreement (AFTA) and hoped more items like jute products, leather and textile will enjoy duty free access in the future. Dhaka has invited more Chinese investment in Bangladesh in sectors like power, infrastructure, construction and electrical products, promising that the Bangladesh government would provide a fair and equal environment. Bangladesh enterprises were welcome to invest in China and to attend the Guangzhou Chinese Import and Export Commodities Fair to show Bangladesh's various products to Chinese people, Wang said. China would provide free stalls in the annual fair to developing countries including Bangladesh, he said.
Friendly relations between the two countries have been developing soundly and smoothly since the establishment of diplomatic relations between China and Bangladesh in 1975. On the basis of the five principles of peaceful co-existence and in accordance with mutual benefits, China and Bangladesh have forged all-round and multi-faceted exchanges and cooperation in politics, economy, trade, culture, science and technology, with outstanding achievements.
The Defence Co-operation Agreement was signed between Bangladesh and China during the visit of Bangladesh Prime Minister, Begum Khaleda Zias visit to China from December 23 to 27, 2002.Bangladeshs Armed Forces today are predominantly equipped with Chinese military hardware. The Bangladesh Armys tanks and light tanks are of Chinese origin. The Bangladesh Navys frigates and patrol crafts are mostly Chinese. The Bangladesh Air Force's combat aircraft are all Chinese. Bangladesh has plans to expand, upgrade and modernize her armed forces. The emphasis on to enhance cooperation in training, maintenance and some areas in defence production, but India said that China gets a strategic toe-hold on Indias Eastern flank in Bangladesh. Chinas naval intrusions are facilitated by Bangladesh into the Bay of Bengal area
China as the most intrusive external power in South Asia would be well served by its Defence Cooperation Agreement with Bangladesh. India cautioned Bangladesh on Pakistani terrorist network in that country, as it has done to Russia and other friendly states to isolate Pakistan in the region. But Bangladesh seems to have taken out an insurance policy from China to cater for increased threat perceptions in the India-specific context. General Musharrafs visit to Bangladesh in October 2002, his tentative apology for the 1971 Pakistani genocide of the Bengalis and the mutual discussions centering around Pakistans perceptions of Indias military escalation would have helped in Musharrafs exaggerating Bangladeshs strategic concerns.
Both Bangladesh and China have dense populations and, therefore, share a number of similar challenges. Bangladesh could learn from China's innovations and speed of economic development to push up living standards. Wu said China and Bangladesh enjoy traditional friendship and the cooperation between the two sides has been progressing smoothly during the past years. Chinese and Bangladeshi top lawmakers agreed in Beijing Tuesday to further parliamentary exchanges to deepen the friendly cooperation between the two countries. In April 2005 during an hour-long meeting with Speaker of the Bangladeshi National Assembly Jamiruddin Sircar met Wu Bangguo, chairman of the Standing Committee of the National People's Congress. He also expressed China's appreciation to Bangladesh for its support on the issues of Taiwan, Tibet and human rights.
Indias hegemonistic designs on Bangladesh have been felt by Dhaka. India keeps blaming as a routine matter that Bangladesh offers Pakistan a fertile ground for basing its proxy war apparatus to strategically discomfit India ion its East and North East peripheries. This arises from common religious links and shared heritage of its intelligence and military establishments with those of Pakistan and that that China did not accord diplomatic recognition to Bangladesh till 1975 i.e. nearly four years after the emergence of Bangladesh as a sovereign state. It can be said that Chinas relations with Bangladesh were being determined by Pakistans considerations.
Political and strategic realities soon took over and China made serious attempts to wean over Bangladesh from Indias influence. India is equally "worried" that China had earlier outflanked United States strategic interests in the Gulf region by its strategic nexus with Pakistan. China, accordingly, can now outflank United States strategic interests in South East Asia by reinforcing the defense cooperation with Bangladesh into a strategic nexus. But the strategists in Washington only could have hearty laugh at New Delhis concerns for USA in the region.
Along side the Chinese ties, Dhaka is also ensuring the US support to offset any move from Indian side. Bangladesh Armed Forces personnel were participating in US Pacific Commands training events and the US Marines had carried out familiarization exercises in Bangladesh. On the economic front, the United States had been more than generous towards Bangladesh.
Some critics warn the policy and decision-makers in Bangladesh to make sure the guarantee of Beijing assistance and to ponder long and hard whether China can provide the strategic insurance it seeks against India. They even cite that Chinas record of support to Pakistan in the Indo-Pak wars of 1965 and 1971 are an ample pointer to the efficacy of its military insurance with China. But, for Dhaka the new scenario emerging in South Asia following the end of the so-called Cold-war needs to be treated quite differently and Chinas bond with Bangladesh is un-doubtable and positively secured. The results of the recent visit to Dhaka by the Chinese delegation endorse that view with clarity.
---------------------------------------------
Dr. Abdul Ruff Colachal is a Research Scholar,
School of International Studies
Jawaharlal Nehru University, New Delhi
http://www.bangladesh-web.com/view....&hidType=EDT&hidRecord=0000000000000000166904