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#3074, 26 March 2010

Hasina's Visit to PRC: In Quest of a Comprehensive Partnership

Kriti Singh
Research Officer, IPCS
email: kriti@ipcs.org

In an attempt to carve out innovative ways to strengthen the more than three decades old bilateral and diplomatic relations with the emerging Asian giant, Bangladesh, Prime Minister Sheikh Hasina undertook a high-profile five-day official visit to China. It was her first visit to China since taking the charge of Bangladesh’s new government, after the landslide victory in December 2009 elections.  The much anticipated high level talks between Bangladesh PM Sheikh Hasina with her Chinese counterpart Wen Jiabao, yielded in the resolution to create a "Closer Comprehensive Partnership of Cooperation" from the strategic perception, with a firm basis on the principle of Panchsheel. This was a crucial steeping stone in Sheikh Hasina’s ambition to get a "comprehensive partnership" with Beijing. The landmark talks dealt with a spectrum of issues that were significant for both the countries. China gave a positive answer to Hasina’s call for Chinese financial aid and technical support for development projects, collaboration in agriculture and power sector. Chinese premier Web Jiabao assured Hasina of an overall backing and support in all areas. The talks can be summed up into five broad issues.

First, issues of international and regional importance were discussed. Stressing on one of the most dangerous issue that is threatening the security apparatus across the globe, Bangladesh PM advocated for concerted steps towards the elimination of terrorism and militancy. Another highly debated issue on the international forum, which was emphasized during her visit, was the issue of climate change. As Bangladesh experiences the rage of nature throughout the year, Hasina called for China’s support in dealing with the challenges of climate change. On the regional front, both the countries agreed to boost cooperation for safeguarding peace, stability and development of South Asia. Underlying the importance of regional cooperation, Sheikh Hasina underscored the need to augment cooperation among the countries of the region, with special reference to both the Asian giants, India and China. Moreover, Hasina also emphasized the need for cohesive efforts to stamp out poverty from the region.

Second, on the infrastructure development issue, China continues to remain a major partner in Bangladesh's economic development venture. In this direction, both the countries signed three major agreements and a MoU comprising Commitment of Chinese Government in assisting Bangladesh in important infrastructure development projects. Beijing also agreed to provide Dhaka with technical and financial assistance for building its infrastructure and industry. China also agreed to cooperate with Bangladesh in the construction of a US$8.7 billion, strategically-significant deep seaport in Chittagong and building a road link between Chittagong and Kunming. China desires to utilize this port as a passage for its southern Yunnan province. Apart from this, the Agreement for Construction of the 7th Bangladesh-China Friendship Bridge was also signed and a grant was given for the building the Chinese Exhibition Centre.

Third, on the economic front, Sheikh Hasina’s efforts in convincing Beijing, to reduce the trade gap also gained success.  As per the Bangladesh government, the trade gap between the two countries was almost US$4 billion as of June 2009. China gave a green signal to duty free access of Bangladeshi products, to its market. It also decided to write off loans given to Bangladesh till 2008 and offered a soft loan to Dhaka. Moreover, agreements on Economic and Technical Cooperation Agreement with Adequate Grant and Memorandum of Understanding (MoU) on Bangladesh-China Cooperation in Oil and Gas sectors were also signed. According to the media reports, China National Petroleum Corporation signed a MoU with two Bangladeshi groups in this sector. Hasina also invited Chinese investment in "promising sectors" like textiles, machineries, fertilizers, gas and energy, footwear, ceramics, IT outsourcing and healthcare, in Bangladesh.

Fourth, in the agricultural sector, China agreed to continue to lend support to Bangladesh, as the nation has a history of being battered by the fury of nature, in the form of floods and droughts. Sheikh Hasina productively sought China’s cooperation in the areas of river dredging projects, modernizing flood forecasting and warning centers, hybrid rice production technology and in launching and setting up of remote sensing satellites. Besides, both the countries signed the Framework Agreement for Construction of Shahjalal Fertilizer Factory. In regard to the Brahmaputra river management issue, Bangladesh was able to earn appreciation from China regarding its proposed joint management of the river.

Fifth, past records of Bangladesh and China defence cooperation has been very strong. Year 2002 saw the landmark defence cooperation between both the countries. The Sino-Bangla defence pact made China the first country to have broad-based defence cooperation with Bangladesh and it is a chief source of materials and equipment for the armed forces of Bangladesh. Continuing the tradition of strong defence cooperation, Sheikh Hasina requested the Chinese government to provide two frigates with three helicopters under long term loan assistance.

Highlighting the success of the “timely, important and significant” visit, Bangladeshi Foreign Minister Dipu Moni said that Hasina’s trip to China was “extremely effective and productive and opens up a new chapter of the Sino-Bangladesh cooperation.” The visit exemplified Sheikh Hasina’s excellent diplomatic proficiency in reviving the warmth between the two nations. Adding a new chapter in their thirty five year old relationship, the recent visit was successful in creating a milieu of mutual trust and an opportunity for both the nations to rekindle interdependence in economical and political relations. In addition to this, it gave Sheikh Hasina an opportunity to perform a balancing act between the two Asian giants, in the backdrop of her visit to India in January.

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