Dhaka, Beijing working out a system for Chinese investment ahead of Xi's visit

[bluesky]

12:00 AM, October 07, 2016 / LAST MODIFIED: 03:04 AM, October 07, 2016
Focus on free trade zone
Dhaka, Beijing working out a system for Chinese investment ahead of Xi's visit
Rejaul Karim

The Chinese president may come to Dhaka on October 13 or 14, leading a 200-strong entourage, which includes several ministers and a large business team, a finance ministry official told The Daily Star.

About 20 memoranda of understanding, including several on investment, are likely to be signed. The foreign ministry has held preparatory meetings with line ministries to discuss those, the official said.

The foreign ministry has held preparatory meetings with line ministries to discuss those, the official said. Focus on free trade zone Dhaka, Beijing working out a system for Chinese investment ahead of Xi's visit. capacity.

The World Bank defines free trade zones as "small, fenced-in, duty-free areas, offering warehousing, storage, and distribution facilities for trade, transshipment, and re-export operations."

At present, Bangladesh has no agreement on free trade zones with any country. Details of any of the agreements to be signed could not be known, but officials said areas of cooperation will be pinpointed for enhancing trade and investment.

The cooperation plan will have a road map for increasing Chinese investment in Bangladesh and setting up joint venture companies. In Anwara of Chittagong, already some 784 acres of land have been acquired for setting up a special economic zone for Chinese investors.

China Harbour and Engineering Company and the Bangladesh Export Processing Zone Authority (BEZA) have signed an MoU for developing the special economic zone, and the Chinese company has already started development work there.

The BEZA has sought $280 million in soft loan from China for developing the zone, and a preliminary agreement on the loan is likely to be inked during the Chinese president's visit.

BEZA Executive Chairman Paban Chowdhury said a special joint venture would be formed for running the zone. Chowdhury said a proposal had been sent to the government to arrange for the inauguration of the zone during Jinping's visit. He expressed hope that it will be opened by the Chinese president.

A five-year MoU will be signed for a project to help Bangladesh mitigate disaster risks. The Chinese government may provide $500 million for the project. But it has not been decided yet whether it would be a grant or a loan, officials said.

Another agreement is expected to be signed for construction of three bridges with Chinese soft loan. The Chinese embassy in Dhaka has already sought to know the names of the three bridges and the estimated cost.

So far, eight bridges have been constructed in Bangladesh with Chinese funding. Besides, separate agreements might be signed on cooperation in energy and telecommunication sectors.

Since taking office in 2009, Prime Minister Sheikh Hasina visited China twice, the last time in June 2014. After that Bangladesh sent lists of dozens of projects to the Chinese government for soft loan.

The Chinese side also gave verbal commitment for giving assistance amounting to $10 billion to $30 billion. But there has not been any written response.

In August this year, Finance Minister AMA Muhith in a letter to the Chinese ambassador in Dhaka mentioned several lists on various projects and wanted to know Beijing's view on them. “We would like first to know which of these projects are likely to be considered by you.

This is very important because some of these projects have also been referred to other development partners for preliminary consideration,” Muhith said in the letter.

During the Chinese president's visit, Bangladesh expects to land pledges worth billions of dollars from him and have already got indication to this effect from the Chinese side, said the finance ministry official.

The official also said a package MoU might be signed about the projects that will get finance from China in the next five years.

The Chinese side had sent a wish list from among the list of projects earlier sent by Bangladesh. Bangladesh has received commitments about some of the projects from several other development partners.

Last month, the finance ministry again sent a revised list of 27 projects to the Chinese embassy. Besides, various line ministries sent lists of projects to the PMO for approval. The list of the projects will be finalised after talks with the Chinese government.

Negotiations over three projects, including one for building a tunnel in the Karnaphuli river, are at final stage, and the two sides are expected to sign loan agreement.

Dhaka and Beijing may agree to carry out a feasibility study for a free trade zone in Bangladesh to facilitate Chinese investment during President Xi Jinping's visit here later this month.

China may also sign a host of agreements on energy, telecommunications and cheap loans for various public sector projects.

 

[war&peace]

I think more important for Dhaka is to decide whether it wants remain an India's satellite state or it wants integrity and sovereignty over its affairs.

 

[bongbang]

I think more important for Dhaka is to decide whether it wants remain an India's satellite state or it wants integrity and sovereignty over its affairs.

Cant you live a moment without making a moronic comment? BD is a sovereign country that is why top country officials frequently visits BD, pledges big and invites BD officials also. It may be a dream for you as a satellite state of another country.

 

[Skies]

during his visit, Bangladesh should ask for a BD-Myanmar-China or BD-India-China route like CPEC for easy and cheaper access

 

[Chinese-Dragon]

It seems like there is a great deal of potential for Sino-Bangladeshi economic cooperation in the coming years.

As for Hasina et al. that is Bangladesh's own internal affairs, let them handle it. Nothing we can do about it anyway.

 

[艹艹艹]

There should be a railway between us

 

[Skies]

I think more important for Dhaka is to decide whether it wants remain an India's satellite state or it wants integrity and sovereignty over its affairs.

From Bangladesh's situation, necessity and perspective, that will be an extreme decision to go against or be with India. Better we keep a balance, but India will never allow BD to have a route access to China. Therefore it is a point where we should take stance against India, as we gave access to India through our land, now India must reciprocate.

 

[Aung Zaya]

during his visit, Bangladesh should ask for a BD-Myanmar-China or BD-India-China route like CPEC for easy and cheaper access


View attachment 341282

already declined by Myanmar many years ago..

 

[idune]

It seems like there is a great deal of potential for Sino-Bangladeshi economic cooperation in the coming years.

As for Hasina et al. that is Bangladesh's own internal affairs, let them handle it. Nothing we can do about it anyway.

Potential, that is absolute.

Chinese view in terms of "internal affairs" is good in principal but may not be suitable in the world we live in. Just consider Nepal situation; China experienced first hand how hands off approach and just economic relation not always a best option.

 

[Chinese-Dragon]

Potential, that is absolute.

Chinese view in terms of "internal affairs" is good in principal but may not be suitable in the world we live in. Just consider Nepal situation; China experienced first hand how hands off approach and just economic relation not always a best option.

Our hands off approach is borne out of necessity, China is still only a developing country. We don't have the clout of USA/Russia, our influence is almost entirely based on economic cooperation.

The only people who can throw out Hasina are the citizens of Bangladesh itself. If India has paid her to be their lackey, we can certainly offer more money. But apparently her ties to India go deeper than just money.

 

[Bilal9]

I think more important for Dhaka is to decide whether it wants remain an India's satellite state or it wants integrity and sovereignty over its affairs.

Those are important. However even more important is to,

1. Provide jobs to feed its people
2. Educate them (at least vocationally)
3. Offer them proper housing and healthcare,

so the future educated generation can get better skilled jobs than stitching T-shirts.

Without jobs - all you have is an uneducated population that is ripe for extremist brainwashing and eagerly taking up 'burning tyres on the streets' as a pastime.

 

[idune]

The only people who can throw out Hasina are the citizens of Bangladesh itself. If India has paid her to be their lackey, we can certainly offer more money. But apparently her ties to India go deeper than just money.

Relation between current regime and india is not based on money. Current regime and Hasian was installed by india and Hasina depend on indian to stay on power.

 

[Skies]

..

already declined by Myanmar many years ago..

Why is Myanmar not interested?

 

[Bilal9]

Our hands off approach is borne out of necessity, China is still only a developing country. We don't have the clout of USA/Russia, our influence is almost entirely based on economic cooperation.

The only people who can throw out Hasina are the citizens of Bangladesh itself. If India has paid her to be their lackey, we can certainly offer more money. But apparently her ties to India go deeper than just money.

This is true. When her family was murdered in Dhaka - she lived at Indian President Pranab Mukherjee's house in Delhi who sheltered her and her sister Sheikh Rehana, the only two surviving family members.

When Pranab Mukherjee's wife passed recently, she personally flew to India to console the family, going beyond protocol. She has a deep personal bond with that family.

Here she is consoling Sharmistha Mukherjee, daughter of President Pranab Mukherjee, on the passing of the former's mother.

She feels she has a personal debt to top leaders in India, especially some of the old guard of the congress.

She is not as close to the BJP leaders in India like Modi, but maintains deft and articulate political protocol.

However, all said and done - I don't think one can doubt her commitment to China as Bangladesh' number one development, investment and trade partner.

And there is massive grassroots support and admiration for Chinese administration and leaders among people in Bangladesh. They want to work hard and replicate the miracle that China has become in the last two decades.

 

[idune]

She feels she has a personal debt to top leaders in India, especially some of the old guard of the congress.

.

Personal relation is not any reason for making Bangladesh as a country a vassal state. Not to mention illegally obtaining and occupying power using indian muscle. It is awami league/Hasina helped india killing 58 of Bangladesh army officers. And you are trying to justify selling out Bangladesh and its independence because Hasina has good personal relation? What a traitor indian slave you are.