Yunus's Historic China Visit: Strengthening Ties Amidst India Tensions
March 28, 2025
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
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Investing.com • Mar 28, 2025
Bangladesh says Xi Jinping would consider lowering interest on Chinese loans