Yunus's Historic China Visit: Strengthening Ties Amidst India Tensions

March 28, 2025
Yunus's Historic China Visit: Strengthening Ties Amidst India Tensions
  • During the visit, Xi Jinping expressed China's eagerness to collaborate with Bangladesh on various initiatives, including the digital economy, green economy, maritime economy, and infrastructure development.

  • Muhammad Yunus's recent visit to China marks his first bilateral state visit since assuming office in 2024, notably occurring without a prior visit to India amid ongoing diplomatic tensions.

  • The strengthening of ties between Bangladesh and China, coupled with a decline in relations with India, could significantly alter the geopolitical landscape of South Asia, raising security concerns for India.

  • Furthermore, Xi expressed China's commitment to increasing investment in Bangladesh and facilitating the relocation of Chinese manufacturing enterprises.

  • The visit culminated in the signing of one agreement on economic and technical cooperation, along with eight memorandums aimed at enhancing cultural exchanges.

  • Both countries acknowledged the urgency of initiating negotiations for a China-Bangladesh Free Trade Agreement and optimizing the existing China-Bangladesh Investment Agreement.

  • Yunus's discussions with Chinese officials were characterized as 'comprehensive, fruitful, and constructive' by his Press Secretary, Shafiqul Alam.

  • A significant topic of discussion was the exploration of enhanced cooperation in water resource management, an issue of great importance to both nations.

  • Bangladesh reaffirmed its commitment to the One-China policy, officially recognizing Taiwan as part of China.

  • President Xi also indicated a willingness to consider lowering interest rates on loans to Bangladesh, showcasing China's supportive stance.

  • Despite a robust annual trade volume of $25 billion between the two countries, Bangladesh's exports to China remain limited to just $1 billion, even with offers of zero-tariff access for many Bangladeshi products.

Summary based on 1 source


Get a daily email with more Global Economy stories

More Stories