PM Hasina's China visit will be a game-changer: Envoy

Chinese Ambassador to Bangladesh Yao Wen has said the upcoming visit of Prime Minister Sheikh Hasina to Beijing will be a "game-changer.”

“We will know in due time. I believe the visit will be another historical one. This will be the game changer. There will be a new chapter (opening) in terms of China-Bangladesh relations. So let's wait and see," he said while replying to a question at a seminar at the embassy on Sunday night. 

The prime minister is expected to visit China in July.

The signing of an FTA is an issue the two countries are discussing to improve trade and investment.

Yao Wen said a China-Bangladesh FTA was imperative for the enhancement of bilateral economic and trade.

Signing FTAs with other countries was an inevitable choice for Bangladesh to achieve its Vision 2041, the envoy added. 

A China-Bangladesh FTA would serve as a guarantee for the healthy and stable development of bilateral economic and trade cooperation between China and Bangladesh, he said.

“The foundation of economic and trade cooperation between China and Bangladesh is solid, extensive and diverse. In terms of trade, China has maintained its position as Bangladesh's largest trading partner for 13 consecutive years, with bilateral goods trade reaching $24 billion in 2023,” he added. 

“In terms of investment, China's FDI stock in Bangladesh had reached $3.2 billion by 2023, making China the second-largest investing country in Bangladesh. In terms of contracting, Chinese enterprises have constructed seven railways, 12 roads, 21 bridges and 31 power plants in Bangladesh.”

A China-Bangladesh FTA would cover areas such as trade in goods, trade in services, investment, e-commerce and high-tech industry cooperation, providing a basic framework and solid guarantee for future bilateral economic and trade cooperation, the ambassador said.

“China and Bangladesh are strategic partners, which will be further upgraded in the future. However, the only trade and investment agreement between the two countries, namely the Agreement on the Encouragement and Reciprocal Protection of Investments signed in 1996, does not align with the increasingly close relations and exchanges between our two countries” he added.. 

“With the China-Bangladesh FTA poised to provide a top-level framework for bilateral cooperation, our economic and trade relations are set to embrace a more sustainable, stable and healthy development momentum.”

The Chinese envoy said that according to a feasibility study report, the overall tariff on goods imported from China to Bangladesh would significantly decrease after the signing of the FTA, leading to a reduction in import prices. 

“This will have an immediate effect on alleviating inflation in Bangladesh.”

“In the long term, the decrease in prices of raw materials for Bangladeshi products will definitely enhance their competitiveness in the international market, laying a solid foundation for Bangladesh to continuously increase its foreign exchange reserves” he mentioned. 

He said the China-Bangladesh FTA would also make China’s investment in Bangladesh more convenient and efficient, making further contributions to creating employment opportunities, upgrading industries and diversifying exports.

“Signing FTAs with other countries is therefore regarded as a crucial way to achieve these goals. Take China as an example, China accelerated the signing of FTAs with other countries after joining the WTO in 2001,” the envoy said, as Bangladesh is looking to become a developed country by 2041.

He continued: “In spite of China's overall tariff decreasing from 15.3% in 2001 to 7.3% in 2023, China's industries have developed rapidly, which drove China's GDP from $1.3 trillion in 2001 to $18 trillion in 2023, tax revenue from $184.9 billion in 2001 to $2.6 trillion in 2023 and tariff revenue from $10.2 billion in 2001 to $42.5 billion in 2022.” 

The ambassador said China was ready to work with Bangladesh to announce the conclusion of the feasibility study of the China-Bangladesh FTA in the near future and strive to officially initiate negotiations within this year, to conclude the negotiations before 2026, commencing the building of a bilateral free trade zone.

“Right now, China is in a new era of advancing the rejuvenation of the Chinese nation on all fronts through a Chinese way to modernization, while Bangladesh is also at a critical stage of graduating from the LDCs and is working hard to realize its Vision 2041.”