Bangladesh News Bangladesh - China Relation

[Isa Khan]

Biman Bangladesh Airlines operate its flights on the Dhaka-Guangzhou-Dhaka route from 18 August.

Biman Managing Director and CEO Md Zahid Hossain met with Chinese envoy Li Jiming Tuesday to discuss the operation of passenger flights on the Dhaka-Guangzhou route.

They also had a detailed discussion regarding flight operations on the Dhaka-Kunming route, reads a press release.

The flight will take off from Dhaka's Hazrat Shahjalal International Airport around 11am and land at China's Guangzhou Baiyun International Airport around 4:45pm.

The return flight from Guangzhou will take off at 7:45pm and reach Dhaka at 9:30pm.

Passengers can purchase tickets for the first passenger flight on this route from any sales centre of Biman.

However, the returning passengers will have to book flights on the www.biman-airlines.com website or any Biman-approved travel agency.

Biman to operate Dhaka-Guangzhou flights from 18 August

Biman Bangladesh Airlines operate its flights on the Dhaka-Guangzhou-Dhaka route from 18 August. Biman Managing Director and CEO Md Zahid Hossain met with Chinese envoy Li Jiming Tuesday to discuss the operation of passenger flights on the Dhaka-Guangzhou route. They also had a detailed...

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[Isa Khan]

The Ambassador of China, His Excellency Li Jiming, has said Bangladesh can increase its exports to the $17 trillion Chinese market by participating in various Chinese trade expositions and fairs to familiarise Chinese consumers with its products.

In a recent interview with The Business Standard, Ambassador Li Jiming said currency clearing arrangements between the two central banks to help use the RMB and Taka in transactions can increase trade by "an unimaginable scale." He also underscored the need to encourage more Chinese market-oriented investment by Bangladeshi businesses and bilateral Free Trade Agreements (FTA).

In response to a question, Ambassador Li Jiming explained the significance of the visit of Chinese State Councillor and Foreign Minister Mr Wang Yi to Dhaka on 6 and 7 August and commented that the visit would "deepen strategic integration, and further enhance practical cooperation" between the two countries.


He also explained the Chinese government's position on US House Speaker Nancy Pelosi's recent visit to Taiwan and the Chinese reaction to the visit.

The following is an edited transcription of the interview:

What was the significance of the visit of Chinese Foreign Minister Wang Yi to Dhaka? Was it looking for ways to improve regional security amid heightened tensions? Or was it for more economic integration as the Bangladesh Prime Minister suggested that South Asia, Southeast Asia and China could work together for economic progress overcoming the impact of the Russia-Ukraine war and sanctions?

China and Bangladesh are amicable neighbours and strategic partners of cooperation. The visit of the Chinese State Councillor and Foreign Minister Mr Wang Yi aims at continuing traditional friendship and upgrading mutually beneficial cooperation. Upon arrival in Dhaka, Mr Wang first visited the Bangabandhu Memorial Museum, where he recalled the history of friendly interactions between the two countries, and felt the solid historical, social and people-to-people bases for our bilateral relationship.


The Hon'ble Prime Minister Sheikh Hasina appreciated the Chinese side for the tribute to Bangabandhu and highlighted that Bangladesh cherishes friendship with China. She underscored that Bangladesh sees China as an important partner for maintaining peace and achieving common development, and it is an irreplaceable option for Bangladesh to deepen solidarity and cooperation with China. Bangladesh will stick to the one-China principle and see Taiwan as an integral part of Chinese territory.


The two sides agreed to strengthen mutual political trust. Based on the Five Principles of Peaceful Coexistence, we support each other to defend independence, national dignity and core interests, and to follow a development path suited to our respective national conditions. We are willing to keep exchange on the governance of the country.

The two sides agreed to have an even closer coordination on development strategies. The Belt and Road Initiative and the Vision 2041 perspective plan will further integrate. Cooperation will be deepened in the fields of infrastructure, digital economy, green development and so on. In order to further encourage Bangladesh's export to China, the Chinese side announced duty-free treatment of 98% tariff lines goods originating from Bangladesh.


The two sides agreed to tighten social and cultural exchange. We signed a new culture and tourism exchange program, and decided to elevate exchange and cooperation on poverty reduction. China welcomes Bangladeshi students to return to China to resume studies. Flights between the two countries will be increased gradually.

Through the visit, China and Bangladesh renewed commitments to traditional friendship, reiterated the one-China principle, agreed to deepen strategic integration, and further enhanced practical cooperation, thereby jointly infusing power of stability to the region and beyond against an uneasy international environment. The visit was fruitful and of great success.

Now almost all Bangladeshi products (98%) have come under China's duty-free offer. How can Bangladesh businesses make best use of the offer? What are the strengths you see in Bangladesh's private sector and what more do you think will be needed for them to gain bigger footprints in the huge Chinese market?

The Chinese Government has granted duty-free treatment of 97% tariff line goods originating from Bangladesh exported to China on July 1st of 2020 and it has had a positive effect. The duty-free treatment of 98% tariff lines goods originating from Bangladesh exported to China will take effect on September 1st 2022, which will further help to boost Bangladesh's export to China.

To boost Bangladesh's export to China, here are some points I would like to share:

First, we recommend Bangladesh's enterprises and exporters to participate in China's International Import Expo (CIIE). Exporters from Bangladesh have been invited to CIIE for four consecutive years. Like previous CIIEs, standard booths for Bangladeshi enterprises will be set up during the 5th CIIE to be held this November. Bangladeshi enterprises are also welcome to the China-South Asia Exposition in Kunming, which is my hometown. Again, free booths are always provided to our Bangladeshi friends. And the China Import and Export Fair in Guangzhou (Canton Fair) is another influential fair that is worth participating in.

Second, Bangladesh needs more Chinese market-oriented investment. Be it 97% or 98% duty-free treatment, Bangladesh needs to produce what the Chinese market needs in order to boost export. China's investment in Bangladesh in 2021 amounted to 1.26 billion dollars and grew almost threefold. With an accumulated investment of nearly $3 billion, China remains a prominent FDI source for Bangladesh. The good news is that the Chinese Economic and Industrial Zone, as the first industrial park, will soon be built in Chattogram, which is of landmark significance. It is hoped that more Chinese enterprises could be attracted to invest here to improve the manufacturing industry and industrial structure of the country, therefore, Bangladesh will have more diversified exportable products and thereby enjoy more opportunities to grasp the Chinese market.

Third, Bangladesh needs to advance studies on the bilateral Free Trade Agreement (FTA). In preparation for Bangladesh's graduation from the LDCs in 2026, we are glad to notice that the Bangladeshi side has shown a positive attitude and opened consideration on FTA with trade partners, including China. It is the proper time for our two countries to promote mutual consensus and deepen a joint feasibility study on FTA. FTA between China and Bangladesh would definitely help to make a preferable arrangement.

Last but not the least, bilateral financial and currency cooperation is strongly recommended to help facilitate trade and economic cooperation. If we could use RMB and Taka in bilateral trade, it will reduce transaction costs and mitigate exchange risk. If we could have a currency clearing arrangement between the central banks of our two countries, the cross-border payment and settlement of RMB will boost Chinese investment in Bangladesh and China's import of Bangladeshi goods on an unimaginable scale.

China had granted zero-duty market access to 97% of Bangladeshi products in July last year, which was later raised to 98%. Trade data shows in nine months till March (July-March of FY21), Bangladesh's exports to China saw their lowest growth (9.68%) among major trading partners. What are the factors, you see, that held Bangladesh back from gaining much from the duty-free offer?

According to statistics from China's customs, in 2021, Bangladesh's export to China amounted to 1.05 billion dollars, exceeding $1 billion for the first time, and registering a year-on-year growth rate of 30.9%. From January to May of 2022, Bangladesh's export to China reached 410 million dollars. So Bangladesh's exports to China are gaining momentum.

As to measures to further enhance Bangladesh's export, I have just shared my views on the question above, namely, we recommend Bangladesh's enterprises and exporters participate in various expositions to China to make Bangladeshi goods known to more Chinese consumers. We also encourage more Chinese market-oriented investment, the bilateral Free Trade Agreement (FTA), and bilateral financial and currency cooperation to help facilitate trade and economic cooperation.

Which Bangladeshi products do have the potential to be among China's top 20 import goods?

At present, according to statistics from the Bangladesh government, more than 60% of Bangladesh's exports to China are garment products. So garment products are still the top product exported to China.

To Bangladeshi exporters' main concern, several kinds of basic leather products are added into the duty-free treatment of the 98% lines, providing more opportunities to Bangladesh's leather industry. It is noticed that programs such as the "Bangladesh leather and leather products promotion webinar" are undergoing and helping Chinese manufacturing enterprises related to leather products form business relations with Bangladesh's leather exporters.

Meanwhile, Bangladesh has many high-quality agricultural, livestock and fishery products. For example, the national fish of Bangladesh, the hilsa, is among both the 97% and the 98% zero tariff lines and has already acquired inspection and quarantine access to the Chinese market. Bangladesh's mango, jackfruit, guava, honey, and beef, are all listed as duty-free products in both the 97% and the 98% tariff lines.

All of the goods mentioned above in Bangladesh have the potential to become star products in the Chinese market. And we are happy to see the brand of "made in Bangladesh'' is earning its reputation.

What are the areas you feel Bangladesh and China have scope to cooperate more? Development of infrastructures for regional connectivity by road, rail and sea; or anything else?

China and Bangladesh enjoy a wide range of cooperation areas and a sound basis for cooperation. On the basis of our traditional cooperation in infrastructure construction, we will encourage more Chinese companies to expand their investment areas and carry out cooperation in agribusiness, food processing industry, ICT, wind and solar power, exploration and exploitation, etc.

Why is China reacting so strongly towards Nancy Pelosi's visit to Taiwan?

Taiwan has been an inseparable part of China's territory for 1,800 years. In 1943, the leaders of China, the United States and Britain issued the Cairo Declaration, which clearly states that all territories Japan stole from the Chinese, such as Taiwan, shall be restored to China. The Potsdam Declaration of 1945 affirmed that the terms of the Cairo Declaration would be carried out. United Nations General Assembly Resolution 2758, passed in 1971, recognised that the representatives of the government of the People's Republic of China are the only lawful representatives of China to the United Nations. When China and the United States established diplomatic relations on Jan. 1, 1979, the US recognised in the joint communique with China that the government of the PRC is the sole legal government of China.

However, the US unilaterally provoked the current crisis. Despite China's many representations, the US still allowed its Speaker of the House of Representatives and the third top official of the US Government Nancy Pelosi to visit Taiwan, which is a major event upgrading the substantive relations between the US and Taiwan and sends a very wrong signal to "Taiwan independence" separatist forces. Faced with this, China has no choice but to fight back. The responsibility and consequence of the current tensions are all on the US and the "Taiwan independence" separatist forces.

As a legitimate response, the Chinese armed forces conduct military exercises in waters off China's Taiwan island to safeguard the sovereignty and territorial integrity of China. Our measures are open and proportionate. They are in line with both domestic law and international law and practices. They are beyond reproach.

What is China's future plan for Taiwan?

Taiwan is part of China. It is an indisputable fact. China's complete reunification is a process that cannot be halted. The Communist Party of China is committed to the historic mission of resolving the Taiwan question. Peaceful reunification and "one country, two systems" are our basic principles for resolving the Taiwan question and the best approach to realising national reunification.

We will work with the greatest sincerity and exert our utmost efforts to achieve peaceful reunification. But we will not renounce the use of force, and reserve the option of taking all necessary measures. The future of Taiwan lies in China's reunification, and the well-being of the people in Taiwan hinges on the rejuvenation of the Chinese nation.

Once peaceful reunification is achieved under "one country, two systems", it will lay new foundations for China to make further progress and achieve national rejuvenation. At the same time, it will create huge opportunities for social and economic development in Taiwan and bring tangible benefits to the people of Taiwan. Peaceful cross-Straits reunification is of benefit not only to the Chinese nation but to all peoples and the international community as a whole.

Will Nancy Pelosi's visit accelerate the unification of Taiwan with mainland China?

Pelosi's visit proved to be a complete farce. It has not only backfired on the US but also irritated the Chinese people and made our minds tougher and solidarity stronger to achieve the reunification of the country. The international community has taken this opportunity to further enhance consensus on the one-China principle, too. Ever since Pelosi's visit, more than 170 countries and international organisations, including Bangladesh, have reiterated their commitment to the one-China principle.

China-Bangladesh currency clearance agreement can increase trade by 'an unimaginable scale': Li Jiming, Ambassador of China

In a recent interview with The Business Standard, Ambassador Li Jiming said currency clearing arrangements between the two central banks to help use the RMB and Taka in transactions can increase trade by "an unimaginable scale"

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[Isa Khan]

https://www.facebook.com/chinaembd/posts/310322927910567

After the Padma Bridge, Bangladesh will inaugurate yet another bridge in Pirojpur to improve trade and communication in the southwestern parts of the country.

The construction of the Eighth Bangladesh-China Friendship Bridge over the River Kacha in Bekutia, completed in June this year, is likely to open to traffic in September.

"Prime Minister Sheikh Hasina will inaugurate the bridge in the first week of September. However, the date is yet to be set," said the project manager of the bridge and Roads and Highways Department (RHD) Executive Engineer, Md Masud Mahmud Sumon.

The two-lane bridge with a track length of 2.96 kilometres is to ensure uninterrupted communication between the Barishal and Khulna divisions.

Locals who now use ferries and boats to cross the River Kacha will benefit immensely once the bridge is operational as it would cut travel time significantly.

A total of 16 districts including Patuakhali, Jhalokati, Pirojpur and Barguna of Barishal division alongside Khulna and Bagerhat of Khulna division, will have a direct road communication network.

The bridge on the Barishal-Pirojpur-Khulna highway will also provide a direct road link between the Payra and Mongla seaports, increasing business opportunities in the region.

"I run a motorbike parts business in Jhalokati and often have to go to Khulna to buy things. Khulna is not very far from Jhalokati, about 100 km, but right now it takes 4-5 hours to get there," said Moniruzzaman, a local businessman.

"The roundtrip takes about 9-10 hours, but once the bridge is operational, it will take a maximum of two hours, not to mention that local businesses will expand rapidly," he said.

Another businessman from Khulna, Habib said, "Khulna is a business hub for a number of districts in and around Barisal division. A large number of vehicles and cargo trucks regularly ply this route, overwhelming the ferries.

Vehicles often have to wait hours to cross the Kacha river. The bridge will be a permanent solution to the gridlock at ferry terminals, he added.

In a recent statement, the Chinese Enterprises Association in Bangladesh (CEAB) said, "Built by the China Railway 17th Bureau Group Co Ltd and managed by the China Railway Major Bridge Reconnaissance and Design Institute Co Ltd, the Eighth Bangladesh-China Friendship Bridge was completed on 9 June."

The bridge will significantly improve local traffic conditions, promote regional connectivity, and will sturdily promote the better development of agriculture, industry, aquaculture, fishery, and tourism in southern Bangladesh, the CEAB statement reads.

According to project manager of the bridge, Engineer Sumon, of the Tk894 crore budget for the bridge, the Chinese government provided Tk654 crore while the remaining Tk240 crore was self-financed.

The construction of the joint-venture bridge began on 1 November 2018. The main part of the two-lane bridge has 9 spans and 10 pillars, and the bridge is 18.30m above the river bed. Apart from the 1493m main bridge, 1467m of approach roads were also made under the project.

8th Bangladesh-China Friendship Bridge to open in Sept

The 2-lane bridge has a track length of 2.96km to ensure uninterrupted communication between the Barishal and Khulna divisions

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[Isa Khan]

Chinese firm China Communication Construction Company Limited will be appointed as service provider for the Bangabandhu Sheikh Mujibur Rahman Tunnel under Karnaphuli River in Chattagram.

Cabinet Committee on Government Purchase at a meeting approved a proposal in this regard on Wednesday.

The same company has been engaged by the government to build the tunnel and its associated infrastructure.

As per the proposal, the Chinese company will collect the toll from the tunnel user vehicles and also conduct its operation and maintenance work at a cost of Tk 983.82 crore for five-year tenure.

However, the toll structure for the vehicles has yet not been determined by the government.

The under-construction Tunnel is the first underwater expressway in the country, expected to be open to traffic by the end of 2022.

According to officials of the project, 86 per cent of the tunnel construction, including the construction of the main tunnel and the approach roads in Chattogram, has been completed.

The main tunnel is 3.32 kilometres long. It has two tubes, each 2.45 km long, and has a diameter of 10.80 metres. Each tube will consist of two lanes. The tubes are 12 metres apart from each other.

There will be a 5.35 km connecting road on the west and east ends of the main tunnel, along with a 727-metre long bridge.

The tunnel goes under the Karnaphuli at the Patenga Naval Academy point in the port city to a depth of 18m to 31m to Anwara Upazila on the other side of the river.

Officials believe there will be better connectivity between the tourist city Cox’s Bazar, southern Chattogram and the rest of the country once the tunnel is open. It will also decrease the number of vehicles using the two bridges over the river.

South of the river in Anwara lies the Korean and Chinese export processing zones, the CUFL factory and Parki Beach.

All routes to Cox’s Bazar, Banshkhali and Matarbari power station and deep seaport go through Anwara.

Work on the project began in December 2017. But the pace of work was a bit slow during the coronavirus pandemic.

Official said that the construction of the two tubes of the tunnel under the river has already been completed.

The first tube took 17 months to complete, but the second one was completed in 10 months. Structural work on the tunnel is currently ongoing.

Jointly funded by Bangladesh and China, the initial cost of the project was estimated at Tk 9880 crore. The cost was subsequently revised up to Tk 10,374 crore.

Karnaphuli Tunnel: CCCCL tipped for toll collection and maintenances

Chinese firm China Communication Construction Company Limited will be appointed as service provider for the Bangabandhu Sheikh Mujibur Rahman Tunnel under Karnaphuli River in Chattagram.

www.newagebd.net

 

[Isa Khan]

With China emerging as a major economic power, being the second largest economy after the United States, it has become a country of tremendous influence in the global economy and financial markets.

In the last decade, it has contributed more than 30% to global economic growth, according to reports.

The central banks around the world are increasing yuan holdings in their reserves as China, while its economic might grows, wants its money to replace the US dollar as global currency and the Bangladesh Bank is following suit.

The Bangladesh Bank has been building up the share of yuan in its foreign exchange reserve, cutting down the share of dollar as the Chinese currency is gaining acceptance faster in global markets for international payments as an alternative to the greenback.

The share of yuan in Bangladesh's foreign exchange reserve increased to 1.32% in August this year from 1% in 2017 when the dominating US dollar reserve fell significantly to 75% from 81% during the period, according to Bangladesh Bank data.

Other reserve currencies have also seen a surge.

For instance, the euro is the second highest reserve currency and the share of euro holdings increased to 5% in August this year from 3.84% in 2017 while the share of the pound increased to 4.4% from 3.43%, according to central bank data.

The share of yuan has been growing steadily in the country's foreign exchange reserve after the Chinese currency was included in the Special Drawing Rights (SDR) currency basket of the International Monetary Fund (IMF) in 2016.

The Bangladesh Bank declared yuan as approved currency for reserve holding some time after and started to build up the share of Chinese currency in the reserve, aiming to facilitate foreign investors amid rising business engagement with China.

As of August 2022, $528 million retained as yuan remained invested in the Chinese financial market. The figure was $323 million in January 2017, according to the Bangladesh Bank.

Meanwhile, China has offered currency swap agreement between the Bangladesh Bank and the People's Bank of China, its central bank, for using both renminbi and taka as currencies of pricing and settlement in bilateral trade.

In a letter sent on 19 August this year, the Embassy of China in Dhaka said a currency swap agreement will help to mitigate foreign exchange rate risk and reduce the cost of foreign exchange transactions.

When contacted, a senior executive of the Bangladesh Bank said they are working positively on this issue.

As Chinese currency is now internationally convertible and Bangladesh is holding yuan in reserve, it will be easier to go for currency swap, he said.

China is the top trading partner of Bangladesh in terms of import.

The total import from China was Tk1 lakh crore in FY21 and exports from Bangladesh to the country was Tk4,804 crore.

The IMF included the yuan in its SDR basket as a fifth currency, along with the US dollar, the euro, the Japanese yen and the British pound. The inclusion in the SDR basket means yuan is now an internationally convertible currency.

At present, Chinese yuan ranks third in terms of weight in the SDR basket, after the US dollar and the euro.

The SDR, short for Special Drawing Rights, is an international reserve asset supplementing members' official reserves, which can be exchanged among governments for freely usable currencies in times of need.

After inclusion of the yuan in the SDR, China strengthened its effort to promote the internationalisation of the yuan and the opening up of its financial market to attract foreign investors to invest in the Chinese market.

As part of promoting its currency, China has largely moved away from giving loans in dollars to the yuan when it comes to financial assistance to Bangladesh.

Its loan commitment in yuan has more than doubled in four years from FY17 to FY20 while disbursement in yuan has increased by more than seven times.

China emerged as one of the biggest sources of funds entering into the top development partner list of Bangladesh at the time.

The share of China in total foreign aid increased to 11.2% in FY21, securing the sixth highest bilateral development partner position of Bangladesh, a tremendous growth considering that funding from China was zero after independence.

China's commitment in yuan more than quadrupled in 2016-17 from the previous year, mainly riding on three projects – construction of a tunnel under the River Karnaphuli, Dasherkandi sewage treatment plan, and procurement of six vessels.

In 2018-19, China disbursed all of its assistance in yuan, completely bypassing the dollar.

Direct investment by Chinese firms in related projects was worth $15 billion last year, a quarter of which was in yuan. China now settles 15% of its foreign trade in the currency, up from 11% in 2015.

How yuan is emerging as global reserve currency

Some 85% of central banks say they have invested, or are mulling investing, in yuan, up from 81% a year ago, according to the UBS Asset Management's annual reserve manager survey released in July this year.

UBS Asset Management (Americas), Inc is a full-service asset manager providing investment and sub-advisory services to individual investors, financial advisors and institutions in the US.

Foreign exchange managers at central banks on average expect to hold 5.8% of their reserves in yuan in the 10-year time, up from 5.7% last year. That would be a significant increase from the 2.9% level reported by the IMF.

As of June 2022, central banks' share of US dollar holdings stood at 63% on average, according to the survey, down from 69% in the previous year.

But, the UBS said fewer Latin American banks, which typically hold more dollars, were surveyed this year, according to media reports.

More than 81% of respondents to the UBS survey said yuan will benefit from a shift to a "multipolar" world. Some 46% said the dollar will benefit, in a sign of the asset's appeal during times of economic or geopolitical tension.

Yuan gains while dollar shrinks in Bangladesh reserve

With China emerging as a major economic power, being the second largest economy after the United States, it has become a country of tremendous influence in the global economy and financial markets. In the last decade, it has contributed more than 30% to global economic growth, according to...

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[Isa Khan]

Red-tape on both Bangladesh and China has slowed faster offtake of Chinese soft loans worth $24.45 billion for 27 deals inked during Chinese President Xi Jinping's visit to Bangladesh in 2016.

Only two projects worth $400 million were signed in the current fiscal year, Economic Relations Division (ERD) officials said.

In the last fiscal year, only one project was signed for a $1.12 billion Chinese loan.

With these, the loan deals amounted to $7.8 billion under the Strengthening and Production Capacity Cooperation scheme signed during Xi Jinping's visit.

ERD officials, who find Chinese loan offers flexible, said the deals for the $20 billion loan were supposed to be concluded in five years since the offer was made.

Officials, however, hoped that $4 billion more may be approved for 10 projects in the next four years before before 2026 – the year Bangladesh is set to graduate from LDC and will have to pay higher cost for borrowing.

This fiscal year, the ERD data shows the country can get a loan of $400 million for just two projects: Rajshahi Wasa's surface water treatment plant and the establishment of six full-fledged TV stations of the Bangladesh Television.
These two projects have loan proposals of $276.25 million and $125.12 million respectively.

Earlier in the last fiscal year, a loan agreement of $1.12 billion was signed with China for only one project. The loan agreement was signed four years after the project was approved at a meeting of the National Economic Council Executive Committee (Ecnec) meeting.

Meanwhile, several important projects such as the Chinese economic and industrial zones in Chattogram and the Teesta River Comprehensive Management and Restoration project have been awaiting loans for a while.

With graduation from the Least Developed Country (LDC) status, Bangladesh will no longer be eligible for LDC-specific special and differential treatment, including such flexible loans.

With time running out, the government, however, is optimistic of securing Chinese finance for several projects in the next four years.

Notable among the agreements signed so far are the Padma Rail Bridge Link Project, Expansion and Strengthening of Power Distribution System in DPDC Areas, Construction of Tunnel under Karnaphuli River, and Installation of Single Point Mooring.

Aside from the last two projects, four more are in the pipeline by 2026.

ERD officials, however, fear that after Bangladesh's graduation in 2026, access to such flexible loans will decrease. If loans at a low interest can be obtained now, the better it will be for the country.

The Business Standard reached out to ERD Secretary Sharifa Khan who refused to comment on the matter.

Meanwhile, China had agreed to provide loans for important projects like the Padma Rail Link and Dhaka Ashulia Elevated Expressway.

Similarly, the construction of TV stations in six divisional towns and the Akhaura-Sylhet railway project were also approved by the government about three years ago, but the final loan decision has not yet been confirmed.

The loan proposal for the Rajshahi Wasa surface water treatment plant project was sent to the Chinese authorities on 13 April 2021, ERD officials said.

It is now being reviewed, and the ERD expects to sign the commitment with China by December this year.

The proposal for the six TV stations was sent in December last year and is expected to be signed after review by March next year.

Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh, said, China's project costs are high, but the country's terms and conditions for loans were not that bad.

"The more flexible a loan, the better it is for us. We won't be able to get flexible loan opportunities for long, so we have to be careful in selecting projects," Ahsan Mansur said, cautioning that projects that may become burdens in the future should not be taken up. "We have to take projects that will be economically profitable. We are not in China's debt trap situation. If we are careful in choosing the projects, we will not get into such a situation," he said.

According to the data of the ERD, China's loan interest rate is 2% and with a commitment charge of 0.25% and management fee 0.25%. The loan has to be repaid in 15 to 20 years with a grace period of 5 years.
Important projects awaiting loans

The work on the Chinese Economic and Industrial Zones in Chattogram on 783 acres of land in Anwara has stalled for five years.

Last August, a memorandum of understanding was signed with the Bangladesh Economic Zone Authority (BEZA) and the Chinese company China Road and Bridge Corporation to establish the zone.

But according to ERD sources, the loan agreement for the project is unlikely to take place before 2025.

Preliminary application was sent to the Chinese Embassy on 12 September, 2018 and supplemental documents on 22 January, 2020. It is said that no response has been received from China yet.

On the other hand, the Teesta River Comprehensive Management and Restoration Projects project is expected to receive $725 million in Chinese loans. The proposal for this project is still under review by the Chinese government. ERD is working on a loan agreement for the project by 2025.

In September 2016, the Water Development Board signed an MoU with the Power Construction Corporation of China to conduct a technical assessment, make detailed designs and undertake the construction of the project.

The MoU was also supposed to help Bangladesh procure a loan from China.

The government expects to reclaim 170.87 square kilometres of land from the Teesta by dredging its main channel. At the same time, it plans to build dams on a needs-based approach.

The land that is planned to be reclaimed is worth $1,570.84 million, while the value of properties that the newly built dams will save is estimated to be $1,346.02 million.

The total benefit accruing from the project will be $2,916.89 million.

In April 2019, Ecnec got approval for the Conversion of MG Railway Track into DG Railway Track in Akhaura to Sylhet Section but the final loan commitment from China could not be realised.

China is expected to lend $1.27 billion for the project. ERD officials said the loan agreement could be in place in 2024.

Notable projects in the pipeline to be implemented with Chinese funding are – Expansion and Modernisation of Mongla Port Facilities, Establishing Digital Connectivity, Procurement of Six Vessels, Construction of a DG Track Parallel to the existing MG line in Joydebpur – Mymensingh – Jamalpur Section, Water Supply, Sanitation , Drainage and Solid Waste Management for small size municipalities.

Red tape slows China’s $20billion loan offtakes

Red-tape on both Bangladesh and China has slowed faster offtake of Chinese soft loans worth $24.45 billion for 27 deals inked during Chinese President Xi Jinping's visit to Bangladesh in 2016. Only two projects worth $400 million were signed in the current fiscal year, Economic Relations...

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[Isa Khan]

Bangladesh Bank yesterday said local banks would be able to maintain accounts in Chinese yuan or renminbi with their corresponding lenders or branches abroad so as to help local businesses settle transactions for foreign trade using the currency.

A Bangladesh Bank official said the government had declared the Chinese yuan or renminbi as a convertible currency in March 2014 by issuing a gadget notification.

But many banks were still shying away from settling transactions of foreign trade through the currency, said the official.

Against his backdrop, the central bank has issued the notice so that banks can lay emphasis on the issue, he said.

On top of that, local businesses have recently urged the central bank to take measures so that dependency on the US dollar can be reduced when settling transactions for foreign trade.

For this reason, the BB has reminded the banks about the matter.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said foreign trade would gain diversity if both businesses and banks come forward to use different currencies.

Such types of moves will also reduce the substantial dependency on a single foreign currency while opening and settling letters of credit, he said.

The country's foreign exchange market has been facing volatility soon after the inception of the Russia-Ukraine war.

Many banks are now facing a crisis of dollars due to the price hike of commodities in the global market amid global supply chain disruptions.

The country's foreign exchange reserves plummeted to less than $38 billion last week due to rising import payments whereas it was over $46 billion a year ago.

As per the government notification, the local businesses are allowed to settle their foreign trade by using eight foreign currencies, which are the US dollar, Canadian dollar, Australian dollar, Singapore dollar, euro, Great Britain pound, Swiss franc and Chinese yuan or renminbi.

Businesses can do foreign trade using yuan: BB

Bangladesh Bank yesterday said local banks would be able to maintain accounts in Chinese yuan or renminbi with their corresponding lenders or branches abroad so as to help local businesses settle transactions for foreign trade using the currency.

www.thedailystar.net

 

[Isa Khan]

Chinese company M/s Qinda Outdoor (BD) Co Ltd is going to set up a tent, sleeping bag and bag manufacturing factory in Ishwardi Export Processing Zone (IEPZ).

An agreement to this effect was signed between Bangladesh Export Processing Zones Authority (BEPZA) and Qinda Outdoor (BD) Co. Ltd. at BEPZA Complex, Dhaka on Tuesday (27 September). Ali Reza Mazid, member (Investment Promotion) of BEPZA and Zhang Yan, representative of Qinda Outdoor signed the agreement on behalf of their respective organisations, said a press release.

BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman, ndc, psc were present during the signing ceremony.

The fully foreign-owned company will invest $12 million in this regard. This factory will produce annually 2 million pieces of tents, canopy, bags, sleeping bags, back packs, tarpaulins, awnings, sunblinds, mosquito nets, portable folding chairs, recycle bins and umbrellas, the press release added.

M/s Qinda Outdoor (BD) Co Ltd will create employment opportunities for 2973 Bangladeshi nationals.

Chinese company to invest $12 million in Ishwardi EPZ

Chinese company M/s Qinda Outdoor (BD) Co Ltd is going to set up a tent, sleeping bag and bag manufacturing factory in Ishwardi Export Processing Zone (IEPZ). An agreement to this effect was signed between Bangladesh Export Processing Zones Authority (BEPZA) and Qinda Outdoor (BD) Co. Ltd. at...

www.tbsnews.net

 

[Isa Khan]

Chinese company Intex Link Garments (BD) Limited is going to set up a garments factory in the Chattogram Export Processing Zone (EPZ) with an investment of $9.58 million.

The fully foreign-owned company will annually produce 61 million pieces of t-shirts, woven pants and jackets, men's and women's undergarments, and sleepwear.

At least 2659 Bangladeshi nationals will gain employment opportunities at the factory, according to a press statement.

To this effect, Bangladesh Export Processing Zones Authority Member (Investment Promotion) Ali Reza Mazid, and Intex Link Garments Managing Director Junting Tan, signed an agreement on behalf of their respective organisations at the Bepza Complex in Dhaka on Monday.

Bepza Executive Chairman, Major General Abul Kalam Mohammad Ziaur Rahman, Member (Engineering) Mohammad Faruque Alam, Executive Director (Administration) Md Zakir Hossain Chowdhury, Executive Director (Public Relations) Nazma Binte Alamgir, Executive Director (Investment Promotion) Tanvir Hossain, and Executive Director (Enterprise Services) Md Khorshid Alam, among others, were present at the signing ceremony.

Chinese firm Intex Link invests $9.58m in Ctg EPZ

Chinese company Intex Link Garments (BD) Limited is going to set up a garments factory in the Chattogram Export Processing Zone (EPZ) with an investment of $9.58 million. The fully foreign-owned company will annually produce 61 million pieces of t-shirts, woven pants and jackets, men's and...

www.tbsnews.net

Bangladesh is assessing the prospect of joining Chinese president Xi Jinping’s Global Development Initiative (GDI). The foreign ministry has already held discussions with involved ministries earlier this week about how Bangladesh could benefit from joining the initiative.

The Chinese foreign minister Wang Yi visited Bangladesh in August this year. During that visit, he asked Bangladesh to join GDI in a meeting with his Bangladeshi counterpart AK Abdul Momen.

Later, Momen told the reporters that Bangladesh will assess China’s invitation.

Two weeks after the meeting, Beijing sent a diplomatic letter to Bangladesh. In the letter, China gave an account of all the steps they had undertaken with their associates to implement the GDI.

Essentially, under GDI, steps were taken for health preservation, food and fuel security, information and technology development, skill development, blue economy and forestation.

On 21 September, 2021, Chinese president Xi Jinping officially announced GDI during a session of the United Nations General Assembly (UNGA).

He said the world has to work together to ensure a balanced, integrated and participatory development process. He further said that GDI has been formatted to accomplish this and to achieve the Sustainable Development Goals (SDGs) by 2030.

What is Bangladesh doing​

On 1 September, an inter-ministerial meeting was held at the foreign ministry regarding the prospect of joining GDI. Secretary (east) of the foreign ministry Mashfee Binte Shams presided over the meeting.
Mashfee told Prothom Alo, “We have held preliminary talks about the many aspects of GDI. We will hold several more discussions and then decide our stance over the different aspects and their necessity.”

A senior official of the ministry said, China has already created a forum named Friends of GDI. Till now, 60 countries have joined the forum, most of which are from Asia, Africa and Latin America. The US and other western countries are not part of the forum. China wants Bangladesh to join this forum.

The official said, Beijing sent a diplomatic letter to Dhaka in August regarding GDI. Last month, senior officials of the foreign ministry had a meeting with the Chinese ambassador Li Jiming about GDI.

In the meeting, the Chinese ambassador was told that the majority of the steps mentioned in GDI are already present in SDG. He was also asked about the necessity of having two initiatives for the same goals.

In reply, the Chinese ambassador said the coronavirus pandemic rocked the entire world. In such changed circumstances, to ensure economic progress and development, integrated initiatives have to be taken. He also said that there is no other alternative to emphasising the aspects like health, fuel, environment and the supply chain.

In the meeting, he was further asked why any western nation hasn’t joined the GDI and whether China is trying to form GDI without any western countries.

To this the Chinese ambassador replied that China wants every country to join this initiative and has invited each and every nation to join the GDI.

International relations specialists said that China has decided to go ahead with GDI to strengthen its political stance in the global development process after the Covid-19 pandemic. Indirectly, China is telling the world that the insufficiencies of SDG will be made up for by the GDI.

Former Bangladesh ambassador to China Munshi Faiz Ahmed on Tuesday told Prothom Alo, “If China or any other country takes an initiative like GDI, Bangladesh should join. There are no harmful elements in this initiative.

“If Bangladesh joins early on, it could play an active and important role. And China had nothing to do with the western nations not joining the initiative. China invited every country to join.”

Dhaka weighs GDI’s importance

On 1 September, an inter-ministerial meeting was held at the foreign ministry regarding the prospect of joining GDI

en.prothomalo.com

 

[Isa Khan]

A three-member team of the Chinese embassy led by Ambassador Li Jiming visited the Teesta Barrage area in Lalmonirhat's Hatibandha on Sunday.

Replying to a question, the ambassador said they intend to excavate the Teesta river during his tenure here.

"Teesta is a big river. It's a big challenge but if we can excavate it, the living standards of the people of northern Bangladesh will improve to a great extent," said Jiming.

He added that he was visiting the river to further the process of a feasibility study for the Teesta megaproject proposed by the Chinese side to their Bangladeshi counterparts in government.

"We'll decide the timeframe of the project once our engineers complete their inspection. I hope that we'll be able to start the Teesta Megaproject within a very short time. It's not only good news for the northern people but is also a matter to be proud of for all Bangladeshis," added the ambassador.

Aminul Haque Bhuiyan, engineer (North) of Rangpur Water Development Board (WDB); Mizanur Rahman, executive engineer of Lalmonirhat WDB; TM Momin, additional deputy commissioner (ADC) of Lalmonirhat and Nazir Hossain, upazila nirbahi officer (UNO) of Hatibandha, among others, were present during the Chinese ambassador's visit.

Chinese envoy visits Teesta Barrage

A three-member team of the Chinese embassy led by Ambassador Li Jiming visited the Teesta Barrage area in Lalmonirhat's Hatibandha on Sunday. Replying to a question, the ambassador said they intend to excavate the Teesta river during his tenure here. "Teesta is a big river.

www.tbsnews.net

 

[Isa Khan]

The country's private sector loan from China increased by 140% in a year, thanks to capital machinery imports, mostly for the power sector.

The total amount borrowed by private sector enterprises from Chinese lenders stood at $2.23 billion at the end of June this year from $920 million in the same month last year, according to data from the Bangladesh Bank.

These were medium- and long-term loans taken out for the import of capital machinery, said a senior executive of the Bangladesh Investment Development Authority (Bida) that approves foreign loans.

High borrowing from China caused the total medium- and long-term external debts in the private sector to reach $8.19 billion in June this year, 19% higher than the amount in the same month last year, central bank data shows.

This significant rise in Chinese credit flows has the prospect of having higher cost of repayments for individual borrowers amid rising dollar prices.

Taka has lost its value by nearly 25% over the last one year, with the dollar price now reaching above Tk105 from Tk84.8 in June last year. It means that borrowers will have to bear this additional cost for repayments.

Moreover, interest costs will also be higher amid rising LIBOR (London interbank offered rate), which crossed the 3% mark, taking the final interest rate for borrowers above 6%, according to the Bangladesh Bank.

Chinese loans are given in dollars and at floating rates, which may put pressure on borrowers as LIBOR rate may increase further if the Federal Reserve Bank of the United States hikes its rate to tighten money flow to control inflation, say industry insiders.

LIBOR represents a benchmark rate that leading global banks charge each other for short-term loans.

However, the Bangladesh government has adopted a cautious stance on taking out financing from China, considering a repayment risk.

Bangladesh's share of foreign loans at floating rates has already doubled in four years as development partners are more inclined to offer market-based loans than fixed-rate ones, citing the country's overall economic progress including the rise in per capita income.

In the fiscal 2021-22, market-based loans stood at a little over 23% of Bangladesh's total external debt portfolio, which was 11.6% in FY18, according to the latest data of the Economic Relations Division (ERD).

A Bida executive, wishing not to be named, said borrowers mostly in the power sector took loans from China for purchasing capital machinery. They borrowed mostly from China as Chinese machinery is cheaper than in other countries, such as Japan and the US.

The overall private sector loan to the power sector rose 42% to $4.33 billion in June this year from $3 billion in September last year, central bank data shows.

Hong Kong, another region of China, is the second highest lender for Bangladesh's private sector, according to Bangladesh Bank data.

However, loans from Hong Kong stood at $1.41 billion in June, 13% down from the same period of the last year.

Private sector loans from the US, the fourth top lender, declined by 18% to $749 billion in June, according to the Bangladesh Bank data.

When private sector lending from China more than doubled, loans from other top 10 lenders grew marginally, less than 1%, during the period.

For instance, loans from the third highest private sector lender, the United Kingdom, grew less than 1% during the same period.

Garment owners prefer purchasing machinery from China and Hong Kong due to lower costs. They have to change machinery in 5-10 years because of changing fashion trends, said a senior executive of the Bangladesh Bank.

Moreover, China is funding various projects in Bangladesh and contractors are purchasing machinery from China, he said.

The committee comprising Bida and the Bangladesh Bank for approving foreign loans are welcoming more loans at dollars amid faster depletion of foreign exchange reserves, he noted.

Asked about the repayment pressure, he said loans were given for 5-10 years. So, by the time the maturity dates come, the country's foreign currency crisis might be resolved, he hoped.

China was the seventh highest development partner of Bangladesh, with a 8% share in the total external debt in FY21, according to the ERD.

Bangladesh Bank data shows that after three years of negative growth, the country saw a big jump in capital machinery imports, led by the apparel industry, in the last fiscal year.

The capital machinery imports grew by 40.78% in FY22, overcoming the negative growth of 12.39% in the previous fiscal year.

Textile and garment sectors mostly led the imports in the last fiscal year, registering 24% and 46% growth respectively. The capital machinery imports of these two sectors were negative in the last three years.

China is the top import country for Bangladesh from where the highest amount of machinery was procured in the last fiscal year, according to data from the Bangladesh Bank.

In FY21, Bangladesh imported nuclear reactors, boilers, machinery and mechanical appliances and parts worth $2 billion.

But the imported amount was 15.39% down from $2.32 billion in the previous fiscal year, according to central bank data.

Amid growing trade with China, the Bangladesh Bank recently allowed banks to maintain an account in yuan with their corresponding branches abroad to settle cross-border transactions in the Chinese currency.

The central bank opened the scope of cross-border payment settlements in yuan at the time when central banks around the world are increasing yuan holdings in their reserves as China, while its economic might grows, wants its money to replace the US dollar as global currency.

All keen to grab private Chinese loan

The country's private sector loan from China increased by 140% in a year, thanks to capital machinery imports, mostly for the power sector. The total amount borrowed by private sector enterprises from Chinese lenders stood at $2.23 billion at the end of June this year from $920 million in the...

www.tbsnews.net

A three-member team of the Chinese embassy led by Ambassador Li Jiming visited the Teesta Barrage area in Lalmonirhat's Hatibandha on Sunday.

Replying to a question, the ambassador said they intend to excavate the Teesta river during his tenure here.

"Teesta is a big river. It's a big challenge but if we can excavate it, the living standards of the people of northern Bangladesh will improve to a great extent," said Jiming.

He added that he was visiting the river to further the process of a feasibility study for the Teesta megaproject proposed by the Chinese side to their Bangladeshi counterparts in government.

"We'll decide the timeframe of the project once our engineers complete their inspection. I hope that we'll be able to start the Teesta Megaproject within a very short time. It's not only good news for the northern people but is also a matter to be proud of for all Bangladeshis," added the ambassador.

Aminul Haque Bhuiyan, engineer (North) of Rangpur Water Development Board (WDB); Mizanur Rahman, executive engineer of Lalmonirhat WDB; TM Momin, additional deputy commissioner (ADC) of Lalmonirhat and Nazir Hossain, upazila nirbahi officer (UNO) of Hatibandha, among others, were present during the Chinese ambassador's visit.

Chinese envoy visits Teesta Barrage

A three-member team of the Chinese embassy led by Ambassador Li Jiming visited the Teesta Barrage area in Lalmonirhat's Hatibandha on Sunday. Replying to a question, the ambassador said they intend to excavate the Teesta river during his tenure here. "Teesta is a big river.

www.tbsnews.net

China is serious about implementing the Teesta River Comprehensive Management Project but also has a sense of reluctance due to the sensitive issues surrounding it, said Chinese Ambassador to Bangladesh, Li Jiming today (October 13, 2022).

He said China found the project very important after Bangladesh formally proposed it.

"But I have to be frank… that Chinse side is a bit reluctant about this project. The reason is the sensitivity we sensed," Jiming said at a seminar on "National Image of China in Bangladesh" organised by the Centre for Genocide Studies (CGS) at a city hotel.

The Chinese envoy said if China decides to go ahead with the project and then Bangladesh decides otherwise after someone's suggestions that "it is again another case of the Chinese debt trap, or there is particular geopolitical sensitivity", it will put him in a very awkward position.

In July 2020, the Ministry of Water Resources sought a US$983 million loan from China to implement the project, in a letter to Bangladesh's Economic Relations Division. The Bangladesh government will bear 15% of the total project cost (about US$130 million).

The project involves dredging the river for navigability, building strong embankments, townships, industries on the two sides of the river, water reservoir and irrigation.

Most of the 111,000 hectares of irrigable land in the Teesta basin in Bangladesh cannot be cultivated during the dry season. In 2013-14, only 35% of the total irrigable area was cultivated, according to officials concerned.

The signing of Teesta water sharing deal could not be signed though it was ready in 2011 due to opposition from Indian Chief Minister Mamata Banerjee.

Jiming visited the Teesta River in Rangpur on October 9 as he wanted to make sure if local government and people wanted the project.

"Fortunately, all the messages that I got from that trip are extremely positive," he said, adding that he will send a message to his colleagues in Beijing that the people were eager about the project – something that will help build confidence among the Chinese officials.

“China serious about implementing Teesta Project”

China is serious about implementing the Teesta River Comprehensive Management Project but also has a sense of reluctance due to the sensitive issues surrounding it, said Chinese Ambassador to Bangladesh, Li Jiming today (October 13, 2022).

www.thedailystar.net

 

[Isa Khan]

The road transport and bridges minister Obaidul Quader on Sunday said that the contractor responsible for the recent girder crash on a car in Dhaka’s Uttara that killed five people under the Bus Rapid Transit Line 3 project would not be allowed to work in Bangladesh anymore after completion of this project.

Earlier a probe committee, formed to conduct an investigation into the accident by the ministry, spared the project authorities and held Chinese firm China Gezhouba Group Company Limited responsible for the accident.

At a press briefing held in the conference room of the road transport ministry, the minister said that when the accident took place 79 per cent work was done.

If new tender was called then it would take few more years to complete the project, he said.

‘Considering the resources and money of the country we will complete the rest of the project work now,’ he said.

‘After that the contractor will not be allowed to work in Bangladesh anymore,’ he added.

Five people were killed and two others, all from the same family, were injured on August 15 when a box girder from the project crashed on a car at the Jashim Uddin Avenue area in Uttara on the Dhaka-Mymensingh national highway, one of the busiest roads in the country.

Currently, Dhaka Bus Rapid Transit Company Limited, along with the RHD, Bangladesh Bridge Authority, and the Local Government Engineering Department, is implementing the 20.5-kilometre north section of the Greater Dhaka Sustainable Urban Transport Project on the Gazipur-Airport route.

The accident took place at the grade section of the project, which is being implemented by the RHD, which appointed the Chinese contractor.

Following the accident, the ministry formed a probe committee on August 15, which submitted a preliminary report on August 16.

The seven-member committee filed its final report on September 1, identifying 12 reasons for the accident, including work on a public holiday without pre-approval.

During the accident, the crane was being operated by the assistant operator, and the crane did not have a license or digital monitor, and it was kept on an uneven surface.

The probe committee also found there was no specific traffic management plan or emergency management plan, the traffic management staff and the safety engineer lacked requirements, and the appointment of the people working for the contractor company was not approved.

Chinese contractor not to be allowed to work in Bangladesh

The road transport and bridges minister Obaidul Quader on Sunday said that the contractor responsible for the recent girder crash on a car in Dhaka’s Uttara that killed five people under the Bus Rapid Transit Line 3 project would not be allowed to work in Bangladesh anymore after completion of...

www.newagebd.net

 

[Isa Khan]

Chinese company Kaixi Lingerie Bangladesh Co Ltd will set up a composite garments industry in Bangladesh Export Processing Zones Authority (BEPZA) Economic Zone (EZ) with an investment of $60.85 million.

They signed an agreement with BEPZA to this effect at BEPZA Complex in Dhaka Tuesday (8 November), said a press release.

Ali Reza Mazid, Member (Investment Promotion) of BEPZA and Xiao Hongxi, Director of Kaixi Lingerie Bangladesh signed the agreement on behalf of their respective organisations.

BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman congratulated the Kaixi Lingerie for choosing BEPZA EZ as their investment destination. He assured the new investor to provide all sorts of support of BEPZA for setting up the industry and starting operations.

BEPZA Executive Chairman urged upon the investors for the optimum uses of land during the construction of the factory. He also requested to keep such provisions in the factory building so that they can use its rooftop for producing renewable energy.

Xiao Hongxi, Director of Kaixi Lingerie Bangladesh thanked BEPZA to allot plot in BEPZA EZ and processing their project very quickly.

According to the proposal of Kaixi Lingerie, they will produce annually 30 million pieces of Lingerie items and textile (fabric), accessories, hangers and foam only for their own consumption for manufacturing and exporting lingerie. The factory will create employment opportunities for 11000 Bangladeshi nationals.

Chinese company to invest $60.85M in BEPZA Economic Zone

Chinese company Kaixi Lingerie Bangladesh Co Ltd will set up a composite garments industry in Bangladesh Export Processing Zones Authority (BEPZA) Economic Zone (EZ) with an investment of $60.85 million. They signed an agreement with BEPZA to this effect at BEPZA Complex in Dhaka Tuesday (8...

www.tbsnews.net

 

[Isa Khan]

Chinese company Fenix Garment Limited is going to set up a high end garments manufacturing industry in BEPZA Economic Zone (EZ) with an investment of $39.70 million.

The company signed an agreement with Bangladesh Export Processing Zones Authority (BEPZA) to this effect at BEPZA Complex, Dhaka Sunday (4 December), said a press release.

Ali Reza Mazid, Member (Investment Promotion) of BEPZA and Ma Zhuang, chairman of Fenix Garment Limited signed the agreement on behalf of their respective organisations.

BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman congratulated the Fenix Garment for choosing BEPZA EZ as their investment destination. He assured the investor to provide all sorts of support of BEPZA for setting up the industry and starting operations.

The BEPZA executive chairman urged upon the investors for the optimum use of land during the construction of the factory. He also requested to keep such provisions in the factory building so that they can use its rooftop for producing renewable energy.

Ma Zhuang, chairman of Fenix Garment Limited said, "I have been in Bangladesh for the last 12 years and operating two factories in Cumilla and Chattogram EPZ. Fenix Garment is going to be our third venture under BEPZA".

He appreciated BEPZA for providing one-stop service to run the business smoothly inside EPZ. Mentioning the reasons behind investing in Bangladesh he said, "I have explored many countries across the world for investment but found investment friendly environment, quality workforce of Bangladesh especially the EPZs and BEPZA Economic Zone as the best choice for me to expand my business."

According to the proposal of Fenix Garment, they will produce annually 10 million pcs of different types of high end garment products including Sports Jacket, Motorcycle Safety Jacket, Coverall, Hospital Gown, PPE, Luggage, Backpacks etc. The factory will create employment opportunities for 15,820 Bangladeshi nationals.

Mentionable that BEPZA EZ is the largest venture of BEPZA located at Bangabandhu Sheikh Mujib Shilpa Nagar, Mirsharai, Chattogram on 1138.55 acres of land. BEPZA signed agreement with total 15 companies including Fenix Garment to establish factories here. The total proposed investment of the companies is US$ 363.65 million. Three companies have already started construction of factory buildings. BEPZA hopes that one of these factories is expected to be first to enter manufacturing by early 2023.

Among others, Member (Engineering) Mohammad Faruque Alam, Member (Finance) Nafisa Banu, Executive Director (Administration) Md Zakir Hossain Chowdhury, Executive Director (Public Relations) Nazma Binte Alamgir, Executive Director (Investment Promotion) Md Tanvir Hossain, Executive Director (Enterprise Services) Md Khorshid Alam, Project Director of BEPZA EZ Md Abdur Rahman Bhuiyan along with high officials of BEPZA and Fenix Garment were present during the signing ceremony.

Chinese Company to invest $40M in BEPZA Economic Zone

Chinese company Fenix Garment Limited is going to set up a high end garments manufacturing industry in BEPZA Economic Zone (EZ) with an investment of $39.70 million. The company signed an agreement with Bangladesh Export Processing Zones Authority (BEPZA) to this effect at BEPZA Complex, Dhaka...

www.tbsnews.net

 

[Isa Khan]

Bangladesh has ranked 54th among 82 countries in China Index 2022, a first-of-a-kind initiative to measure and compare the People's Republic of China's global influence.

The country scored 102/384 in the index.

Bangladesh established diplomatic relations with China in 1976. It was ranked 162th in Reporters Without Borders' 2022 World Press Freedom Index and Partly Free in Freedom House's 2022 Global Freedom Status with a score of 39/100.

Pakistan topped the index with a score 242/380 as the country most influenced by China, according to the index.

Besides, India ranked 55th with a score of 96/376.

Behind Pakistan, Southeast Asia featured prominently in the rankings, with Cambodia and Singapore coming second and third, followed by Thailand.

Besides, the Philippines is seventh and Malaysia 10th in the index.

South Africa is the first African country at No 5, where it tied with Peru, the highest-ranked South American country.

Kyrgyzstan and Tajikistan, which border China's western Xinjiang province, are the Central Asian countries most influenced by Beijing, coming in at eighth and ninth.

Meanwhile, Germany is the highest-ranked European country at 19th and the US leads North America in the 21st position.

Britain ranked the second-highest European country, 27th on the index.

The China Index 2022 is the first research initiative to measure and compare PRC influence overseas, allowing academics, civil society advocates, media and policymakers to better understand related issues and conduct comparative analysis across different countries and regions.

In compiling the China Index, the research team focused on nine categories to track influence around the world – higher education, domestic politics, economic ties, foreign policy, law enforcement, media, military cooperation, cultural links and technology.

Chinese Embassy opens online condolence book to pay tribute to Jiang Zemin

The embassy invited people from all walks of life in Bangladesh to express their condolences and pay tribute to Jiang

www.dhakatribune.com

 

[Isa Khan]

A Chinese company, SSH (BD) Sustainable Fashion Co Ltd, will invest $24.05 million in the Bepza Economic Zone to establish a high-end garment industry.

To this effect, the Bangladesh Export Processing Zones Authority (Bepza) on Wednesday signed an agreement with the company at the Bepza complex in Dhaka.

The Chinese company will produce 36 million pieces of high-end garment products each year, including jackets, blazers, coats, suits, pants, trousers, jeans, shirts, shorts, cargo longs, underwear, jerseys, T-shirts, knit-bottoms, baby bumpers, swimsuits, sheath dresses, hoodies, and uniforms.

Some 2,062 Bangladeshi nationals are expected to get employment there.

Ali Reza Mazid, member (investment promotion) of Bepza, and Sun Ge, managing director of SSH (BD) Sustainable Fashion Co Ltd, signed the agreement on behalf of their respective organisations.

Bepza Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman was present at the signing ceremony.

Outside of Bangladesh, the company operates 11 factories in Myanmar, Cambodia, and China.

Among others, Member (Engineering) Mohammad Faruque Alam, Member (Finance) Nafisa Banu, Executive Director (Public Relations) Nazma Binte Alamgir, Executive Director (Investment Promotion) Md Tanvir Hossain, and Executive Director (Enterprise Services) Md Khorshid Alam were present at the event.

Nazma Binte Alamgir told The Business Standard, "The Chinese company will start factory construction in three to six months. It will bring machinery from abroad and set it up in the factory."

Including SSH (BD), Bepza signed agreements with a total of 16 enterprises to establish industries in the Bepza Economic Zone for an investment of $387.7 million.

"The zone is expected to draw approximately $2.70 billion in foreign direct investment (FDI) once it is fully operational," Major General Abul Kalam Mohammad Ziaur Rahman told TBS.

Bepza is currently overseeing eight operational export processing zones (EPZs) including Chattogram EPZ, Dhaka EPZ, Mongla EPZ, Ishwardi EPZ, Cumilla EPZ, Uttara EPZ, Karnaphuli EPZ, and Adamjee EPZ.

The Bepza Economic Zone in the Bangabandhu Sheikh Mujib Shilpa Nagar in Chattogram's Mirsarai is gearing up to go into production this year.

The economic zone, the first of its kind developed by Bepza, spans 1,138.55 acres of land in Bangabandhu Sheikh Mujib Shilpa Nagar.

Bepza Economic Zone gets $24m foreign investment

A Chinese company, SSH (BD) Sustainable Fashion Co Ltd, will invest $24.05 million in the Bepza Economic Zone to establish a high-end garment industry. To this effect, the Bangladesh Export Processing Zones Authority (Bepza) on Wednesday signed an agreement with the company at the Bepza complex...

www.tbsnews.net

 

[Isa Khan]

Bangladesh-China Power Company Limited (BCPCL), a joint venture of North West Power Generation Company Ltd (NWPGCL) and China National Machinery Import and Export Corporation (CMC), signed the Power Purchase Agreement (PPA) and Implementation Agreement for 68MW solar park project in Sirajganj today.

The agreements were signed on Monday afternoon at an event in the Mukti Hall of Bidyut Bhaban in the capital, reads a press release.

The event was presided over by Md Habibur Rahman, secretary, Power Division, Ministry of Power, Energy and Mineral Resources. State Minister for Power, Energy and Mineral Resources Nasrul Hamid graced the event as chief guest.

Among others, Chairman of Sustainable and Renewable Energy Development Authority (SREDA) Munira Sultana, NDC, Bangladesh Power Development Board Chairman Engineer Md Mahbubur Rahman, PGCB Managing Director Golam Kibria were present at the signing ceremony.

Earlier on 24 February 2022, BCPCL signed an Engineering Procurement and Construction (EPC) agreement with Sinohydro, a Chinese state-owned hydropower engineering and construction company.

Under the agreement, Sinohydro will implement the solar park project in Sirajganj Sadar upazila at a cost of Tk1,798 crore.

The government will buy electricity generated there at $0.102 (Tk8.12 when $1=Tk80) per kilowatt for 20 years.

The PPA and Implementation agreement for the 60MW solar park at Sujanagar in Pabna, under Bangladesh-China Renewable Energy Company, is set to be signed soon.

BPDB to buy power from Sirajganj 68MW solar park at $0.102 per kWh

The Bangladesh Power Development Board (BPDB) is going to purchase electricity from Sirajganj 68 megawatt solar park for 20 years at $0.102 per kilowatt hour (kWh). The solar park project, currently under construction and being implemented by the Bangladesh-China Renewable Energy Company...

www.tbsnews.net

 

[Isa Khan]

Bangladesh has conveyed to China that it maintains a balanced foreign policy and walks together with all the countries while reassuring the support of Dhaka to Beijing.

‘We believe in one-China principle. We maintain a balanced foreign policy. This is our principle. We will extend our support (to China) time to time,’ foreign minister AK Abdul Momen told reporters on Tuesday as conveyed to his Chinese counterpart.

Newly appointed Chinese foreign minister Qin Gang had a brief stopover at Hazrat Shahjalal International Airport on early Tuesday.

Foreign minister Momen received his Chinese counterpart upon his arrival at the airport at about two minutes before 2:00am, a senior official at the Ministry of Foreign Affairs said.

The two foreign ministers had a brief meeting at the VIP Lounge of the airport and discussed issues of mutual interest.

While briefing the media at the airport early Tuesday, Momen said that he raised the huge trade gap issue with China.

He said that though there was a decision of duty free and quota free facilities for Bangladeshi exports, it had not been implemented yet fully.

Businesses are yet to take advantage of the DFQF facilities in the Chinese market, Momen mentioned, seeking measures from the Chinese side.

Momen described the visit of Chinese president Xi Jinping to Bangladesh in 2016 as a milestone but mentioned that many decisions in terms of investment are yet to be implemented.

The Bangladesh FM also mentioned China’s involvement in a number of important development projects including rail link of Padma Bridge.

He also thanked the Chinese government for its support to Bangladesh during Covid-19 pandemic.

The Chinese foreign minister invited Momen to visit Beijing at a mutually convenient time.

In reply, Momen also invited his Chinese counterpart to come again for a longer stay.

Foreign minister Momen saw off his Chinese counterpart at Hazrat Shahjalal International Airport at about 2:50am on Tuesday.

Earlier, Momen told UNB that it was not an official visit to Bangladesh, but the Chinese foreign minister would make a stopover here on his way to another destination.

Qin Gang, who until recently was ambassador to the US, has started his term with a weeklong trip to five African countries.

To ‘deepen the China-Africa comprehensive strategic and cooperative partnership’ and boost friendly cooperation between China and Africa, Foreign Minister Qin Gang will visit Ethiopia, Gabon, Angola, Benin, Egypt, the African Union Headquarters and the League of Arab States Headquarters upon invitation, from January 9 to 16, 2023,’ Chinese foreign ministry spokesperson Wang Wenbin said at a daily media briefing on Monday.

This is the 33rd consecutive year that Africa has been the destination of the Chinese foreign ministers’ annual first overseas visit, he added.

Bangladesh FM meets his Chinese counterpart, seeks better trade relations

Bangladesh has conveyed to China that it maintains a balanced foreign policy and walks together with all the countries while reassuring the support of Dhaka to Beijing....

www.newagebd.net

 

[Isa Khan]

China-based IHM Garments and Textile Company Ltd will invest $8.7 million to establish a garments factory at the Ishwardi Export Processing Zone in Pabna district, says a press release.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority (BEPZA) and IHM Garments at Bepza Complex in the capital on Monday.

Ali Reza Mazid, member for investment promotion at Bepza and Yu Binbin, chairman of IHM Garments signed the agreement on behalf of their respective organisations in the presence of Bepza Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman.

This fully foreign owned company aims to annually produce 2.6 million pieces of woven tops and 10.6 million pieces of knit tops and pants for ladies, kids and men, creating employment opportunities for 2,457 people.

Among others, Bepza members Md Faruque Alam and Nafisa Banu, executive directors Md Zakir Hossain Chowdhury, Nazma Binte Alamgir, Md Tanvir Hossain and Md Khorshed Alam were also present during the investment agreement signing ceremony.

Chinese company to set up $8.7m RMG factory

The factory at Ishwardi EPZ would employ over 2,450 people

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[Isa Khan]

Information and Broadcasting Minister Dr Hasan Mahmud today said China is a development partner of Bangladesh and it wants to be a partner in future too for materialising the dream of a developed nation by 2041 under the leadership of Prime Minister Sheikh Hasina.

"China is a development partner of Bangladesh. They didn't poke nose in politics of Bangladesh and don't want to do it in future too," he told reporters after a meeting with Chinese Ambassador to Bangladesh Yao Wen at his office at the Secretariat in the capital.

Hasan said the ambassador came here for a courtesy call and discussions were held over the role of the Chinese government in 'development processes', development ideas and other issues.

"You (journalists) all know that China was involved in country's many mega projects like Bangabandhu Tunnel, different bridges and other projects. They are constructing pipeline so that oil can come directly from offshore to Patenga Eastern Refinery in Chattogram. They are also working in EPZ," said Hasan, also Awami League joint general secretary.

Besides, he said, there are 'Six TV' project for setting up television centers at divisional cities. "It is supposed to be financed by the Chinese government in 'concessional loan'. We are moving ahead slowly in this regard as the world is going through economic recession. Discussions were held on this issue too," he added.

Yao Wen said a lively discussion was held with the information minister. China has been supporting the country's (Bangladesh) economic, infrastructural and social development as a partner, he added.

"We are happy to play a pivotal role in these areas. We never poke nose in the politics of the country and also don't want to do it in future," Wen added.

China doesn't poke nose in politics of Bangladesh: Hasan

Information and Broadcasting Minister Dr Hasan Mahmud today said China is a development partner of Bangladesh and it wants to be a partner in future too for materialising the dream of a developed nation by 2041 under the leadership of Prime Minister Sheikh Hasina. "China is a development partner...

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