50 Years of China-Bangladesh Bilateral Relationships

Mohammad Maruf Hasan Ph.D :

In the context of a changing world, this relationship is meaningful from a political and diplomatic perspective. Bangladesh-China relations are a solid and successful reality regarding trade, investment and development project cooperation in Bangladesh. The two nations have bilateral connections with one another.

Bangladesh and China have a long history together. From Christ’s birth, Chinese and Bengali civilizations were in contact. Through the Brahmaputra River, people from Bengal and China have been bonded since ancient times. China and Bangladesh have had formal diplomatic relations since 1975.China officially established diplomatic relations with Bangladesh.

The year 2025 celebrates 50 years of bilateral diplomatic relations between the two countries. Over the past 50 years, the connection between these two nations has transformed from a straightforward diplomatic alliance to a strategic partnership encompassing political, economic, party-to-party, and military-to-military exchanges, cultural exchange, and infrastructural development as a developing partner. This milestone offers a prospect to reflect on the journey of this bilateral partnership, emphasizing critical key areas of cooperation and the challenges that lie ahead.

Political Relations
China established a diplomatic partnership through mutual respect and non-interference principles since their recognition in 1975. The relationship between Bangladesh and China evolved into a “Strategic Partnership of Cooperation” after Chinese President Xi Jinping visited Bangladesh in 2016. China and Bangladesh have made strategic and diplomatic cooperation through the Belt and Road Initiative (BRI) and multilateral engagement in UN, ADB, and BRICS+ dialogues, and they uphold each other on various global disputes like climate change and trade liberalization.

Bangladesh maintains a balanced approach, such as a balanced foreign policy, cooperating with both China and other stockholder countries while avoiding alliances in regional rivalries; on the other side, China acknowledges this position while choosing to work as a development partner instead of interfering with politics.China has acted as a middle party to resolve the Rohingya refugee crisis between Myanmar and Bangladesh. The people of Bangladesh value Chinese involvement, but analysts suggest that China supports Myanmar’s position because of its strategic objectives in the region.

Economic Relations
Bangladesh is trying to develop its market economy, and China actively participates as its developing partner. While China has become Bangladesh’s most significant importer for the country’s economic development through export-import activity, remittance, mage projects, and foreign direct investment, China has made a considerable contribution to this economic activity.

China-Bangladesh relations, particularly their economic relations, stand out as a key pillar of bilateral cooperation. These relations were established in 1975, and this partnership has multifaceted engagement characterized by trade, strategic investment, and infrastructure development. Initially, limited cooperation was seen due to Bangladesh’s economic challenges and the early phases of China’s global economic expansion. After the last two decades, both countries’ trade burst to the next level. However, the growing geopolitical and economic landscape enhances both countries’ relationships. China is a significant trading partner in Bangladesh, with $24 billion (2022-23).

At the moment, China has invested around $38 billion in Bangladesh. $13.6 billion is in joint enterprises, while $24.65 billion is in bilateral cooperative infrastructure projects. Chinese investments in the manufacturing and infrastructure sectors have given socioeconomic, political, and foreign policy a new angle.

Infrastructure development: Building the future together
Bangladesh-China economic relations are not limited to bilateral trade; both countries have a stronger relationship. Bangladesh becomes closer because of China’s Belt and Road Initiative (BRI); Bangladesh is one significant member in this enormous vision of regional integration and development.

In 2000, China invested in several infrastructure developments in Bangladesh before officially signing into BRI. China completed 138 projects with USD 20.8 billion between 2000 and 2021.

Since 2013, China’s infrastructure projects have mostly been under the BRI, for instance, the Padma multipurpose bridge construction and rail line by a Chinese company loan, which connects the South part plus Payra and Mongla port to Dhaka directly in a short time. Payra 1320 MW thermal power plant is another major Chinese project developing in southern Bangladesh.
Foreign Direct Investment Apart from the infrastructure project financing in the last few years, Chinese state-owned and private companies have foreign direct investment (FDI) in this country. For instance, economic development FDI is a significant variable in the U.S.A., UK, Germany, and Singapore, the world’s largest economy countries. Historically, the country receives substantial FDI from the U.S.A. and the U.K., but after BRI members in the last few years, Chinese FDI has increased yearly, and in recent years, China has become the top FDI country in Bangladesh.

Bangladesh-Chinese local joint venture companies established, such as Bangla-China Power Company Limited, Dhaka stock exchange, etc. The University of Navara reports that from 2016 to 2022, private and state-owned Chinese companies have invested over $26 billion, of which in 2022, the country received $1 billion FDI, which is $30 million more between 2021 in this country, which has helped to improve energy, as well as connectivity or even human resource development project.

A Chinese economic zone is being built in Anwara, Chittagong, to increase Chinese investment in Bangladesh. An agreement was signed between Bangladesh and China for this purpose.

Work in this economic zone was stopped for about four years. However, the work on preparing this economic zone has recently gained momentum. To encourage Chinese investment, the business community announced a Chinese economic zone through which Chinese entrepreneurs can invest here, and all the benefits will be provided to them. More factories will be set up to manufacture backward linkage products in the garment sector. As a result, Bangladeshi entrepreneurs will get backward linkage products from this industry imported from China from this EPZ.

Most of the investments coming into BEPZA are still Chinese investments. Chinese entrepreneurs are taking up more plants in BEPZA. Chinese investment in Bangladesh will increase a lot in the coming years. This will increase trade between the two countries and increase Chinese investment.

China and Bangladesh committed to building on their long-lasting and mutually precious partnership. The two countries’ cooperation is anticipated to expand in digital infrastructure, green energy, and technology. Prioritizing respect for one another, economic growth, and stability in the region would help China and Bangladesh ensure their diplomatic relationship is a role model for international cooperation. Both nations celebrate their historical accomplishments and the bright future that lies ahead, characterized by cooperation, progress, and enduring friendship, as they get closer to celebrating their 50th anniversary of diplomatic ties.

(The author is an Associate Professor, School of International Studies, Sichuan University, Sichuan, China.)