China is the planet’s most populous country and second largest by land mass. China has become one of the globe’s fastest-growing post-industrial economies since reforms were put into place in 1978 by Deng Xiaoping and his supporters, and its rapid industry growth since then has led to competition with the United States and Europe.
China’s expanding economic, military and diplomatic influence has contributed to its image as a formidable world power. It is reported that by 2028 China will be the world’s largest economy, putting the economy of the US into the second position. In the above context, it is natural that China’s footprint is gradually getting larger in South Asia and in the Indian Ocean.
China’s past “ping-pong diplomacy” is replaced by “cheque-book diplomacy. China is attracted to investment in South Asia in sectors which would generate good returns and it is reported that in the next five years, China is ready to provide $30 billion investment and $20 billion loans in South Asia.
Wang Yi’s Dhaka visit
Bangladesh’s relations with China have taken a multi-faceted direction. China has assisted the country, among others, in infrastructure, power, industrial plant and telecommunications. Over the past few years, China has replaced India as Bangladesh’s biggest import destination with bilateral trade of about $10 billion during 2013, with overwhelmingly in China’s favour.
The Dhaka visit of the Chinese Foreign Minister Wang Yi from 27 to 29 December illustrates the importance of further consolidation of bilateral relations for mutual benefits.
During the visit the Chinese Foreign Minister met with the President, the Prime Minister and the opposition leader of the parliament. However his meeting with the Chairperson of BNP Begum Khaleda Zia has sent a message that China is appreciative of political parties which contributed to the strengthening of bilateral relations.
On 28 December, Bangladesh and Chinese foreign Ministers held a wide ranging discussions which reportedly covered all bilateral issues of cooperation including sectors such as agriculture, industrial, military and infrastructure. The meeting also discussed about the celebration of their 40-year diplomatic ties n 2015. (China recognised Bangladesh on 31 August 1975 and opened its mission in October).
At the meeting, Chinese Foreign Minister had underscored five priority areas to strengthen further bilateral relations. He proposed Free Trade Agreement with Bangladesh, would set up coal based power plant, expressed to construct a deep sea port at Sonadia (near Cox’s Bazar), supported BCIM economic corridor and assured to reduce trade deficit for Bangladesh.
In Bangladesh, China reportedly agreed to invest about $4 billion on six projects which include among others, a tunnel of multiple lanes under the Karnaphuli river, a second railway bridge on the Karnaphuli river at Kalurghat, construction of double gauge railway from Chittagong to Cox’s Bazar via Ramu and from Ramu to Gundhum
Financing infrastructural projects
During the visit it is reported that the foreign minister of China welcomed Bangladesh’s proposal of creating a specialized zone for investment of Chinese companies in Bangladesh.
China and Bangladesh are interested in building an economic corridor through land territory connecting Bangladesh, China, India and Myanmar (BCIM).The route which is about 2,800 km long is a part of historic silk route and will cost about $22 billion. On 17-18 December, the second meeting of officials of Joint Study Group of all four countries was held in Cox’s Bazar and it is reported that the study group will submit a combined report within six month to the governments of the four countries. The next meeting is expected to be held in India.
Once all the countries have agreed to build the route a multi-billion dollar fund might be established with the assistance of multilateral development partners and the private sector, apart from the funds of the governments.
However BCIM corridor does not connect directly between Bangladesh and Myanmar. Therefore Bangladesh proposed another separate road link from Bangladesh via Myanmar to Kunming and China’s position was reportedly positive to the proposed route.
China has shown its interest in constructing a deep sea port at Sonadia, near Chittagong with $5 billion, the gateway to the Bay of Bengal. It is reported that the total cost of the deep sea port with its three phases would cost about $9 billion. Bangladesh however is reportedly considering a consortium of countries to build the deep sea port with India, China, Denmark, Netherlands, UAE and the US.
The deep sea port is hugely important for Bangladesh because the port can provide gateway to the Bay of Bengal for the South Asian hinterlands comprising Bhutan, Nepal and India’s seven northeastern states with a population of more than 70 million. This means Bangladesh can be a “hub” of regional economy and will be able to play a vital role as an inter-regional connecting- point between South Asia and South East Asia.
Strategic location
It is noted that China is an important supplier of arms and weapons to Bangladesh. Reportedly Bangladesh and China signed an agreement in December 2013 to buy two “Ming” class submarines at the cost $230 million to protect its maritime areas in the Bay of Bengal. Since 2010, the government has taken firm steps in gradually building Bangladesh Navy as a deterrent force and the acquisition of submarines is a part of the plan to defend its off-shore areas.
It is reported that India felt unease about Bangladesh’s deal for submarines with China and sought clarification from China on the necessity of supplying submarines to Bangladesh. Although India does not perceive a threat from the acquisition of submarines by Bangladesh, some analysts think that India is worried with Chinese increasing influence on Bangladesh and turning Chittagong port similar to “Gwadar port” of Pakistan.
Bangladesh is a nation of strategic importance not only to South Asian region but to the larger geo-political dynamics of Asia as a whole. The country constitutes a bridge between South Asia and South East Asia. Bangladesh’s access to the Indian Ocean is commercially and strategically important.
Naturally other countries such as the US, India and Japan are interested to keep close relations with Bangladesh for strategic reasons. As India, the US and Japan are becoming closer with the apparent objective to contain the influence of China in Asia-Pacific region including in South Asia, deepening relations between Bangladesh and China is being closely monitored by these countries.
A truly modern partnership
Bangladesh must have friendly and cooperative relations with India, China and Japan. It is desirable that Bangladesh may maintain a balanced relationship and would not overwhelmingly align itself to one country to be an irritant to another country because global power-politics is involved. Many politicians and academics believe that friendly relations with all these countries, Bangladesh will have more negotiating power regionally and globally.
However, Future Cooperation with China may be explored in the following areas. Water resource management of the Brahmaputra River since China built a dam in Tibet on the upper stream of the Brahmaputra River. A Himalayan Commission consisting of China, India and Bangladesh could be set up for appropriate water resources management and development of the Brahmaputra river basin.
Renewable use energy: solar, wind power and biomass; Shifting of low-end industries to Bangladesh from China, (such garments and leather); Maritime Security including sea lanes of communication in the Indian Ocean.
It is clear that Bangladesh needs to develop with China a truly modern partnership, one that is practical, open and engaged to meet the global and regional challenges.
The writer is former Bangladesh Ambassador to the UN, Geneva.