Global Politics Explainer

CWA # 1656
Global Politics Explainer
Bangladesh and China: What agreements did the Chief Executive Yunus sign during his recent Visit? What do they mean?

Emma Rose Boby
18 April 2025
Photo Source: AP Photo

During March 2025, Bangladesh’s Chief Advisor Prof Muhammed Yunus visited China for four days to attend the Boao Forum Asia (BFA) 2025 and also held a dialogue with President Xi Jinping. On 28 March, China and Bangladesh signed agreements on economic and technical cooperation and eight Memorandums of Understanding (MOUs) on various sectors of cooperation. At the BFA, the two countries agreed to maintain the “Five Principles of Peaceful Coexistence.” The two sides also discussed and came to a consensus regarding various projects and future economic investments in Bangladesh.

During his visit, Yunus made a statement relating to India’s northeast and the Indian Ocean. He claimed India’s Northeast as land-locked and said: “We are the only guardian of the ocean for all this region. So, this opens up a huge possibility…this could be an extension of the Chinese economy. Build things, produce things, market things, bring things to China, bring it out to the whole rest of the world.” He invited China to freely invest in the water of Dhaka as it opens to the Bay of Bengal. 2025 marks the 50th anniversary of diplomatic relations between China and Bangladesh.

What agreements did Bangladesh sign with China?
During his visit, Yunus signed multiple agreements with China. The two countries made five announcements on formal negotiations that include the following: first, the launch of the Chinese Industrial Economic Zone in Chattogram (around 30 Chinese companies have committed to investing about USD 1 billion along with USD 350 million for the China Industrial Economic Zone); second, a commercial agreement for the modernization and expansion of Mongla Port in Bagerhat (for which China will loan Bangladesh USD 400 million); third, the building of a robot physiotherapy and rehabilitation centre; fourth, a donation of a cardiac surgery vehicle; and fifth, China to pledge USD 150 million for technical assistance.

Bangladesh has agreed to export fresh mangoes, and agricultural and aquatic produce. It committed to create a “favourable investment environment” for Chinese enterprises. Dhaka invited China to take part in the Teesta River Comprehensive Management and Restoration Project (TRCMRP), a significant project that was previously offered to India. The two have discussed the feasibility of a Free Trade Agreement (FTA) to boost Bangladeshi exports.

China has pledged duty-free and quota-free access to its markets for nearly all Bangladeshi products until 2028. Beijing has invited Bangladesh to make use of various platforms like the China International Import Expo, the China International Supply Chain Expo, and the China South Asia Expo.

Both agreed to collaborate further in maritime affairs and cultural exchanges between the youth.

What is the state of China-Bangladesh cooperation, and why are they important to each other?
After the fall Sheikh Hasina’s government, Beijing affirmed that it would like to pursue an “all-round strategic partnership” with the new interim government. A term they use to describe close ties with countries like France, Spain, and more. China sees Bangladesh as a gateway into South Asia and is significant for its Belt and Road Initiative (BRI). Besides the geographic location, China sees Bangladesh as important as access to inexpensive labour. Strategically, Bangladesh may also be geopolitically significant to China as it will serve as a counter to Indian influence in the South Asian region.

For Bangladesh, China is important to improve its infrastructure. 21 bridges, 11 highways, and seven railway lines to better increase connectivity within the country. Additionally, it has also taken up multiple energy projects. On economy and trade, China has become the largest trading partner from 2006. China has loaned and invested in the country through FDIs, loans, and the attention to economic restructuring. In recent years, Beijing has also taken up 27 energy and power generation projects.

The perspective of the youth towards China seems to be positive due to the large amounts of investments, growth of tourism, particularly in terms of medical tourism, technological development, and higher education and employment opportunities, according to findings presented at a seminar titled, “National Image of China in Bangladesh.”

What does it mean for India?
This visit comes after the turbulent times post-Sheikh Hasina. During her reign, Hasina favoured India. New Delhi supported her back, and she attempted to balance ties between both India and China. This can be seen through the strategic partnership with China and the signing of 21 MOUs with President Xi Jinping. Additionally, the agreement to elevate their ‘strategic partnership’ to a ‘comprehensive strategic cooperative partnership’ in July 2024, just before the uprising.

A few developments within Bangladesh under Yunus’s regime has been seen by New Delhi as anti-Indian. Developments relating to minorities, and the new Dhaka-Islamabad axis has an implication for India. With New Delhi recalibrating its approach towards Bangladesh, China is slowly choosing to fill. This may also lead to a strengthening of China’s influence in South Asia, where India and China have been struggling to assert dominance.

India’s relationship with Bangladesh is deteriorating following its refusal of Sheikh Hasina’s extradition and their inaction against her allegations against Chief Advisor Yunus. Dhaka’s tilt towards Beijing could result in Bangladesh becoming heavily dependent on China and may also lead to closer ties with Pakistan.

References:
Antara Ghosal Singh, “China's strategic concerns amid Bangladesh’s political turmoil,” Observer Research Foundation, 14 October 2024

Mostak Ahamed Galib & Bulbul Siddiqi, “How our youth can leverage Bangladesh-China ties,” The Daily Star, 11 April 2025

Kallol Bhattacherjee, “India is a political friend, China is a friend for attaining development: Bangladesh Minister,” The Hindu, 7 July 2024

Sujit Kumar Datta, “A Visit to China Invigorates Relations with Bangladesh,” ChinaUSFocus, 9 April 2025

Vasudevan Sridharan, “Is India’s regional clout waning over Bangladesh cosying up to China?” South China Morning Post, 4 February 2025

“Bangladesh benefits from ties with China, want it to enter new phase: Yunus,” Business Standard, 29 March 2025

Monica Beg, “Yunus in Beijing: A new geopolitical game in South Asia,” Dhaka Tribune, 30 March 2025

About the author
Emma Rose Boby is an undergraduate student at the Department of International Relations, Peace Studies, and Public Policy at St Joseph's University. She is currently pursuing the NIAS Course on Contemporary South Asia.


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