Strengthening Bangladesh-China Relations: A Visit With Many Windows – Analysis
The diplomatic ties between Bangladesh and China reached new heights with the visit of Chief Adviser Professor Muhammad Yunus to Beijing from March 26 to March 29, 2025. The visit, following his participation in the Boao Forum for Asia Annual Conference in Hainan, underscored the evolving partnership between the two nations. This engagement led to comprehensive discussions on bilateral relations, regional stability, economic cooperation, and cultural exchange. With 8 memorandums of understanding (MoUs) and 1 agreement signed, the visit marked a significant step toward deepening strategic ties.
Bangladesh and China share a strong and enduring friendship, formalizing a strategic partnership during President Xi Jinping’s visit to Dhaka in 2016. Their diplomatic relations date back to January 1976. Defense cooperation remains a cornerstone of their relationship, as China is the only country to have signed a defense agreement with Bangladesh and serves as its primary arms supplier. The Bangladesh defense forces utilize a range of Chinese military equipment, including tanks, missile launchers, fighter jets, and other weaponry, with the recent addition of two Ming-class submarines.
Beyond defense, China is a key player in Bangladesh’s infrastructure development, actively participating in the construction of bridges, roads, railways, airports, and power plants. Much of China’s developmental assistance is provided through lines of credit. During President Xi’s 2016 visit, China pledged $24 billion in economic aid for twenty-four projects, largely in the form of credit lines. In the economic sphere, China remained Bangladesh’s top trading partner in FY24, with bilateral trade reaching Tk 2.246 trillion, according to data from the Bangladesh Bureau of Statistics (BBS).
Additionally, China’s share in Bangladesh’s total export-import trade rose to 15.17 percent in June FY24, marking a 0.26 percentage point increase compared to the same month in the previous fiscal year, as per BBS data released in December 2024. Bangladesh primarily imports industrial raw materials, semi-finished goods, and consumer products from China, while its key exports to China include jute yarn, jute products, tanned hides, and processed hair. Additionally, a broad range of Bangladeshi exports enjoy zero tariffs in China, following a decision by the Tariff Commission of the State Council in June 2020. These collaborations underscore the depth and breadth of the growing partnership between Bangladesh and China across multiple sectors. In this context, the CA’s visit suggests that the relationship is entering a new phase.
The Visit at a Glance Key Developments
Chittagong-Kunming Flights & Healthcare Access China Eastern Airlines to launch flights between Chittagong and Kunming. Four Kunming hospitals dedicated to Bangladeshi patients with equal treatment costs. Lower ticket prices for Dhaka-Kunming flights to boost medical tourism.
Investment & Economic Engagement Interactive sessions with over 100 Chinese CEOs. Focus on attracting FDI and relocating factories to Bangladesh. Interest from major Chinese firms in renewable energy, tech, and infrastructure.
Strategic Trade & Economic Agreements $2.1 Billion in Investments & Grants: $1B for the Chinese Economic Zone, $400M for Mongla Port, $350M for China Industrial Economic Zone, and $150M in technical assistance. Extension of zero-tariff access to 2028. Initiation of Free Trade Agreement (FTA) negotiations. Plans for relocating Chinese manufacturing to Bangladesh. Development of an exclusive Chinese Industrial Economic Zone.
High-Level Bilateral Talks President Xi Jinping’s rare personal welcome for Professor Yunus. China to support Bangladesh’s transport network, linking Kunming with Bangladeshi ports. Interest in the Teesta River Project. Possible expansion of defense cooperation. China reaffirmed support for Rohingya repatriation but no new commitments made.
50-Year Water Management Plan Focus on long-term water strategy, flood control, and river dredging. Addressing river encroachment and siltation challenges. Requests for China’s help in cleaning Dhaka’s polluted rivers. China pledged technical support.
Encouraging Chinese Investment Professor Yunus engaged with 100+ Chinese CEOs, promoting Bangladesh as a trade and investment hub. BIDA & BEZA highlighted investment opportunities. Strong interest in infrastructure, energy, and technology sectors.
Elevating Bangladesh-China Relations Meeting at the Great Hall of the People. Xi Jinping reaffirmed support for Bangladesh’s development. Discussion on Free Trade & Investment Agreements. Plans for greater economic cooperation, including transport and river projects. China to import Bangladeshi mangoes and jackfruits.
Bangladesh’s Export of Mangoes & Jackfruits Approval for mango exports to China after six years of negotiations. Shipments expected to begin next summer. Chinese Ambassador confirmed interest in mangoes, guavas, and jackfruits. $4M in World Food Programme assistance for export standard compliance.
Honorary Doctorate from Peking University Professor Yunus awarded an honorary doctorate for contributions to economics and social innovation. Delivered speech on social business and youth’s role in societal change.
Bilateral Cooperation Agreements China reaffirmed support for Bangladesh’s interim government. China to finance four ocean-going vessels for Bangladesh Shipping Corporation. Investment in Mongla Port modernization and Dasherkandi sewage treatment project. Bangladesh requested a reduction in Chinese loan interest rates from 3% to 1-2%.
Diplomatic Engagements and Bilateral Understanding
During the visit, Professor Yunus met with President Xi Jinping in Beijing, reinforcing the shared commitment to mutual progress. Vice Premier Ding Xuexiang and Vice President Han Zheng also held discussions with the Bangladeshi leader, focusing on fostering economic, political, and social collaborations. These high-level talks reflected the deep-rooted relationship between the two countries and their joint efforts to address pressing global and regional issues.
The Chinese government extended a warm welcome to the interim administration of Bangladesh, acknowledging the reforms undertaken since August 2024. Both sides reaffirmed their commitment to strengthening the Comprehensive Strategic Cooperative Partnership, emphasizing peaceful coexistence and mutual support in international forums. The visit highlighted China’s continued role as a steadfast partner in Bangladesh’s socio-economic development and governance stability.
Economic and Infrastructure Development Cooperation
Among the commitments, Chinese government entities and private firms pledged $1 billion in investments in Bangladesh’s exclusive Chinese Industrial Economic Zone. Additionally, the agreement includes $400 million for the modernization of Mongla Port, $350 million for the China Industrial Economic Zone, and $150 million in technical assistance. These developments are expected to bolster Bangladesh’s industrial and infrastructure growth while deepening economic ties between the two countries.
Bangladeshi officials, along with Chinese Ambassador to Bangladesh Yao Wen, emphasized that nearly 30 Chinese companies have committed to investing in the exclusive Chinese Industrial Economic Zone following the Chief Adviser’s call for increased private investment in Bangladesh’s manufacturing sector. Ambassador Yao Wen described the visit as a “milestone”, reiterating China’s interest in expanding its economic footprint in Bangladesh.
A major focus of the visit was economic cooperation, particularly within the framework of China’s Belt and Road Initiative (BRI). Bangladesh expressed appreciation for China’s extensive support in infrastructure projects, including the development of bridges, roads, railways, and power grids. The modernization of Mongla Port and the continued expansion of the Chinese Economic and Industrial Zone (CEIZ) in Chattogram were key topics of discussion.
Both nations agreed to expedite negotiations on a China-Bangladesh Free Trade Agreement (FTA) and optimize the China-Bangladesh Investment Agreement. These efforts aim to facilitate trade, investment, and the export of high-quality Bangladeshi products such as fresh mangoes and other agricultural and aquatic goods to the Chinese market. China, in turn, encouraged Bangladesh to leverage platforms like the China International Import Expo to expand economic collaboration.
Investment and Economic Initiatives
In addition to the signed agreements, five crucial economic announcements were made-
• Formal negotiations for an investment agreement.
• Launching the China Industrial Economic Zone (CEIZ) in Bangladesh.
• A commercial agreement for the modernization and expansion of Mongla Port.
• Establishment of a robot physiotherapy and rehabilitation center.
• Donation of a cardiac surgery vehicle.
These initiatives demonstrate China’s commitment to strengthening Bangladesh’s infrastructure and economic landscape.
Hydrological and Environmental Cooperation
Bangladesh and China acknowledged the significance of sustainable water resource management. They spoke positively of the Implementation Plan for the Exchange of Hydrological Information concerning the Yarlung Zanbo-Jamuna River. China also expressed interest in contributing to the Teesta River Comprehensive Management and Restoration Project (TRCMRP), which is crucial for flood control and agricultural sustainability in Bangladesh.
“Water is both a source of life and a challenge for Bangladesh. We seek China’s guidance in developing a long-term strategy,” Professor Yunus stated to China’s Water Resources Minister Li Guoying . In response, Minister Li affirmed China’s willingness to provide technical expertise, recognizing the shared challenges both nations face in water resource management.
The two sides pledged to collaborate in areas such as flood prevention, river dredging, and disaster risk reduction. Additionally, both countries reiterated their commitment to addressing climate change and developing the blue economy. Plans were made to enhance maritime cooperation through dialogues at an appropriate time, fostering joint efforts in marine resource management and ecological preservation.
Cultural and People-to-People Exchanges
Cultural cooperation was another significant aspect of the visit. Bangladesh and China agreed to celebrate the 50th anniversary of diplomatic relations in 2025 by promoting people-to-people exchanges. This includes partnerships in education, tourism, healthcare, and youth engagement. The agreements signed covered translation and publication of literary classics, cultural heritage preservation, media cooperation, and sports collaborations.
China’s support in providing medical treatment facilities in Yunnan Province for Bangladeshi patients was highly appreciated. These initiatives are expected to strengthen cross-cultural understanding and enhance interpersonal relations between the two nations.
Geopolitical and Security Coordination
The two sides reaffirmed their stance on multilateralism and international governance. Bangladesh reiterated its support for China’s One-China policy and its firm opposition to “Taiwan independence.” The visit reinforced their shared advocacy for a multipolar world order that promotes fairness, justice, and economic inclusivity.
In terms of global security, Bangladesh endorsed China’s Global Development Initiative, Global Security Initiative, and Global Civilization Initiative. Both countries pledged to work together in addressing challenges faced by the Global South, promoting stability and self-reliance among developing nations. Furthermore, they agreed to enhance coordination within the United Nations and other multilateral platforms to safeguard the interests of emerging economies.
Regional Stability and the Rohingya Crisis
A key regional issue discussed was the ongoing Rohingya crisis. Bangladesh acknowledged China’s role in mediating peace talks on Myanmar and in finding a sustainable solution for the displaced population from Rakhine State. China, in turn, commended Bangladesh for its humanitarian efforts and reaffirmed its commitment to facilitating the repatriation of refugees through diplomatic channels.
Both sides agreed on the need for continued dialogue and cooperative efforts to restore stability in Myanmar, ensuring a peaceful and voluntary return of the displaced communities. China pledged to offer further support within its capacity to aid in resolving the crisis.
Conclusion
Chief Adviser Professor Muhammad Yunus’ visit to China marked a milestone in Bangladesh-China relations. With a focus on economic collaboration, infrastructure development, cultural exchanges, and regional stability, the visit reinforced the strategic nature of their partnership. Both nations remain committed to fostering mutual trust and advancing shared goals, ensuring long-term prosperity and development. As Bangladesh and China continue to work together on regional and global challenges, their strengthened ties will play a crucial role in shaping future cooperation.
