Beijing-Dhaka cooperation

The convergence of trade and economic priorities of China and Bangladesh was visible in the six accords signed during the Bangladesh PM's trip to Beijing. There were significant developments like China's offer of 300 million RMD for the North Dhaka Water Treatment Plant and Sewerage Plant -- a crucially important project for Dhaka city. China has also agreed to extend cooperation to peaceful use of nuclear energy in Bangladesh, which we need due to the mounting energy shortage.

The accords and MOUs signed cover various sectors and should lead to greater cooperation between China and Bangladesh based on a pragmatic assessment of our needs. China has shown keen interest in investing in Bangladesh's developing economy which has certain strong points. We have a large domestic consumer base which could turn any foreign investment into a lucrative proposition. Then we have duty free access to some rich countries which is a big advantage that investors can always exploit. Our incentive package compares favourably to other competitors in the field. Of course low labour and production costs are also a plus point that prospective investors should be interested in. Finally, China has huge potential to invest in any EPZ in Bangladesh, designed and operated to cater to the needs of foreign investors.

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One of the major developments is that China has agreed to import ready-made garments from Bangladesh. It is our competitor in this field, but there are many complementarities that the two sides could take advantage of. China and Bangladesh can have mutually beneficial trade relations in many areas because of these complementarities.

The PM has assured the Chinese investors of all cooperation from the Bangladesh side and also proposed that the two countries develop "strategic" trade ties in order to reap maximum benefits from the joint ventures. We believe China will favourably examine the PM's proposal.