China, Bangladesh and South Asia

That was almost eighteen years ago. The factors that were indicated then, continue to determine Chinese foreign policy even today.

The recent visit to Pakistan, Bangladesh, Sri Lanka and India by Chinese Prime Minister Wen Jiabao underlined just that. His efforts in South Asia over the past week and half indicated that China wants to extend contacts and deepen traditional ties, identify points that can contribute towards mutual benefit, promote collective development, launch effective economic and technological cooperation to overcome certain existing deficiencies (in the health, education, agriculture, telecommunication and energy sectors) and establish least common denominators for moving forward in areas of bilateral political and economic cooperation (particularly with regard to India and the issue of Taiwan).

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China's present interest in the region and the need to fine their relations with important South Asian countries appear to have been evoked by Washington's sensitive strengthening of ties with New Delhi. It is being interpreted by China as an attempt by the United States to contain Beijing's rising sphere of strategic influence and quest for regional dominance.

It is probably in this context, that the Chinese Prime Minister tried to reassure countries in the South Asia region. In his intervention in the 26-member Asian Cooperation Dialogue held in Islamabad on 6 April, he pointed out that contrary to assumptions by certain countries, it would be wrong for neighbours of China to be worried about a stronger and more developed China.

In this regard, he re-assured the wider audience (consisting of those countries who were not in the conference) that in the evolving geo-political climate China would not seek hegemony or domination. Instead, it believed in cooperation being the basis for relations. He also underlined the need for Asian countries to focus more on trade and economic links with the fastest growing economy in the world.

In all his visits, Wen Jiabao cleverly stressed on general but populist phrases -- 'common aspirations', 'fundamental interests', 'non-interference in each other's internal affairs' and 'respect for equality among sovereign nations'. This was indeed a wise approach and probably aimed at the USA and India.

In New Delhi, China and India signed a landmark accord aimed at resolving their boundary dispute that had bedevilled relations between these two countries for more than four decades. There was also strategic understanding whereby India reassured China that it would not encourage anti-Chinese acts. In exchange, China formally accepted that the State of Sikkim was part of India. This convergence may in fact be interpreted as efforts by both parties to complement each other. The former Indian Prime Minister went to Beijing about two years ago, and since then, initiatives on both sides appear to be aimed at China becoming the factory of the world and India its office.

Premier Wen Jiabao tried to project his country's agenda through the composition of his delegation. The 102-member entourage included significant members from the Chinese Administration -- three Cabinet Ministers, four Vice Ministers, senior officials and a large contingent of businessmen. This enhanced the significance of discussions held on a wide range of issues pertaining to bilateral cooperation.

This was Jiabao's second visit to Bangladesh. His first visit as party leader, took place eleven years ago. This time round, his visit was billed as part of China's effort to emphasise 2005, which marks 30 years of Bangladesh-China diplomatic relations. As in the past, this visit also characterised the comprehensive nature of the partnership.

This feature was reflected in the nine Accords signed between Bangladesh and China (through agreements, memorandum of understanding and exchange of letters) during the visit of the Chinese Premier. These included, among others, a technical cooperation and framework agreement on provision of concessional lending by China to Bangladesh, a cooperation agreement on peaceful usage of nuclear energy for nuclear medicine and bio-technology, an MOU on installation of digital telephone exchanges in metropolitan cities, important district headquarters and upazila growth centres, a contract on management and production service of the Baropukuria coal mine, capacity building of Bangladesh law enforcement agencies including training on criminal investigation techniques, technology and forensic tests: exchange of letters on cooperation in water management and the establishment of direct air-link between Bangladesh and China. It is understood that this last agreement has been undertaken to facilitate exchange of visits between the trading communities of the two countries and is expected to make its debut on May 18 this year.

An aircraft of China Eastern Airlines will fly to Dhaka from Beijing via Kunming on that date and will then return to Beijing the same day. The fact that it will touch Kunming will underscore the importance of the Kunming initiative and sub-regional cooperation.

Relations between Bangladesh and China have been marked, for the last twenty-five years, with several visits at the level of heads of government. In fact, this was the second visit by a Chinese Prime Minister to Bangladesh in the past three and half years (since the current Administration has taken office). Khaleda Zia has also visited China twice, once in December 2002 and the second time to attend the Microcredit Summit in Shanghai in July 2004. Bilateral relationship during the past Awami League Administration, was similarly on an equally friendly footing with significant growth achieved in the economic horizon.

What makes this latest visit important for Bangladesh is the Chinese recognition of the need to address the serious imbalance that defines bilateral trade between the two countries. According to official sources, two-way trade came to $1.14 billion in 2003-2004. Out of this, Bangladesh's imports from China totaled about $1.08 billion. Such a situation, obviously, is unfortunate.

Bangladesh, quite sensibly, has asked for duty-free access to the Chinese market and has been assured, that from January 2006, preferential access will be permitted to 84 items for entry into China under the Hong Kong agreement. It has also been suggested by the Chinese that they will consider import subsidy and tariff cut to boost Dhaka-Beijing trade.

One is not sufficiently clear as to whether these 84 items will help in narrowing the trade gap. It is also vague as to whether we actually produce sufficient quantities of these items to compete in the Chinese market. Nevertheless, it is a good first step and in the right direction.

Chinese business leaders accompanying the Prime Minister also had meetings with their counterparts in all the South Asian countries. In Dhaka, they stressed on the possibility of collaborative ventures, underpinned by Chinese capital and expertise. They have already demonstrated this approach most efficiently in Pakistan, Nepal and Bangladesh. This in turn has generated much goodwill for that country and offset potential bitterness stemming out of serious imbalances existing in favour of China in bilateral trade. India may like to take a leaf out of this book, particularly in its relations with Bangladesh.

It would be important to refer here to recent interesting comments made by C. Raja Mohan, an Indian columnist writing in the 'Indian Express' on 8 April, 2005. He wrote: 'As China raises its economic profile in the Subcontinent ... India seems stuck in a policy limbo'. He then goes on to suggest that 'India has limited options in dealing with the Chinese profile in the Subcontinent. The first is to radically revamp New Delhi's trade policy to the neighbours'. He then warns that 'if India can't find ways to integrate itself with the economies of its neighbours, China will.'

There have been till now, a constant progression of economic milestone projects in Bangladesh with Chinese assistance. This has included power plants, fertiliser factories, marine fisheries and infrastructure development (including six and friendship bridges). One can only hope that this level of cooperation will be continued and consolidated further in the future.

Another important element in the visit was the clearing of the air over Taiwan. This was required, given the sensitivity of Beijing and the recent misunderstanding that arose over commercial relations with Taiwan. Bangladesh has endorsed once again the one country -- two systems approach and this should restore confidence on this issue.

Many agreements have been signed within the scope of partnership for development. What matters, however, is the implementation mechanism for maximum results. It is here that we have to be careful. We have to further streamline our regulatory process to reduce inefficiency and increase effectiveness.

This visit to South Asia by Wen Jiabao has underlined the fact that China is vital to South Asia. It has already forged close connection with other regional groupings, particularly the ASEAN. Its efforts have also illustrated the realistic practicability of South-South cooperation.

The next SAARC Summit will hopefully be convened sooner than later in Bangladesh. One hopes that the various measures of economic cooperation espoused by China during this visit will be translated into more intensive collaboration between South Asia and China. This will help to restore trust and confidence and efface suspicious surveillance.

Muhammad Zamir is a former Secretary and Ambassador -- any response to mzamir@dhaka.net