In Focus
Bangladesh & China: Muhammad Yunus’s Visit
Nova K
On 26 March, Bangladesh’s Chief Advisor left for China to participate in the Boao Forum 2025. During the four-day visit, he is expected to meet with the heads of the CPC as they mark the 50th year of friendship. Prior to the visit, Bangladesh’s Foreign Secretary, Md Jashim Uddin, informed that several agreements would be signed between the two countries on economic cooperation. Yunus said: “Our relationship has been very strong over the years. Our business is very strong, and we benefit from our collaboration with China,” and that “Everybody in Bangladesh is inspired by what China has achieved.” Bangladesh’s Press Secretary, Shafiqul Alam, informed that Yunus wanted to visit India before China and that an official request was made last December which had no positive response.
Meeting with Xi
On 28 March, China’s President Xi Jinping met Bangladesh’s Chief Advisor Muhammad Yunus. Xi noted that the two countries have a long-standing history of friendship. This year also marks the 50th anniversary of their bilateral cooperation and expressed China’s willingness to work with Bangladesh. Xi pushed for an advanced cooperation on the Belt and Road Initiative, aimed at pushing digital, marine, and green economy. While cooperating on infrastructure development, water conservation, and people-to-people exchanges. Xi also called for an orderly multipolar world and wishes to promote development and coordination in Global South countries. Yunus also affirmed to One-China principle and stated that they oppose Taiwanese independence. He welcomed Chinese firms to invest in Bangladesh to aid the economic transformation of the country.
Nine Agreements Signed
On 28 March, China and Bangladesh signed nine agreements during Bangladesh’s Chief Advisor's visit to Beijing. These agreements were signed after he met with China’s President, Xi Jinping. These agreements were on economic and technical cooperation, translation and publication of classics, exchange of cultural heritage, media exchanges and healthcare sector. They also launched formal negotiations on investments, signed commercial agreements on the modernization and expansion of Mongla Port, building rehabilitation centers, and donations for cardiac surgery vehicles.
Investments in port, economic zone, and technical assistance
On 28 March, The Business Standard reported on the monetary amount agreed on by the two countries for investments. China pledged to give USD 400 million for Mongla Port, USD 350 million for China Industrial Economic Zone, and USD 150 million for technical assistance. China’s Ambassador to Dhaka, Yao Wen, informed that 30 Chinese firms have pledged to invest USD 1 billion in the Chinese Industrial Economic Zone. They also agreed to kickstart the discussion on formulating a Free Trade Agreement between the two countries. Yunus welcomed China to participate in the Teesta River Comprehensive Management and Restoration Project.
China’s President Xi Jinping also informed Chief Advisor Yunus that China will consider the request to lower interest rates on Chinese loans to Bangladesh. He also affirmed that Chinese firms would be encouraged to invest in Bangladesh and facilitate the relocation of Chinese manufacturing to Dhaka. Currently, China is Bangladesh’s biggest trading partner, with the annual trade accounting for USD 25 billion, but with a major trade deficit of USD 1 billion of Bangladesh exports to China despite zero-tariff market access.
Responses from Bangladesh media
Bangladesh’s flagship newspaper, The Daily Star, published an op-ed titled “Yunus’s China visit can open many doors.” The op-ed noted that this visit will serve as a foundation to recalibrate Dhaka-Beijing ties. Therefore, the author notes that this visit will prioritize diversifying export strategies to China in order to lessen the trade deficit. This can be done with the help of the Bangladesh Embassy in China, as they can exhibit products to Chinese firms and cities to attract buyers. The op-ed further expounded on how this visit could lead to further investments in the healthcare and defense sectors.
An editorial in The Tribune titled “Yunus' 4-day visit to China, meeting with Xi and growing closeness between India’s neighbours,” noted the not-so-warm current relations with its neighbour India since the ousting of Bangladesh’s former Prime Minister Sheikh Hassina. It noted that under Hassina’s administration, Bangladesh had an India friendly posture. Even during that period, China heavily invested in financial and infrastructure sectors. The ousting and establishment of the current interim regime has widened China’s opportunity. The editorial believes that China will try to woo Bangladesh to counter India’s influence in the region.
References:
“Xi meets Bangladeshi interim government's chief adviser,” Xinhua, 28 March 2025
“Dhaka, Beijing sign 8 MoUs, 1 deal on economic, technical cooperation,” The Business Standard, 28 March 2025
“Bangladesh secures $2.1b in investment, loan and grant from China,” The Business Standard, 28 March 2025
“Bangladesh says Xi Jinping would consider lowering interest on Chinese loans,” Reuters, 28 March 2025
“Yunus wanted to visit India before China,” The Daily Star, 27 March 2025
“Yunus’s China visit can open many doors,” The Daily Star, 26 March 2025
“Yunus' 4-day visit to China, meeting with Xi and growing closeness between India’s neighbours,” The Tribune, 25 March 2025
