China-Myanmar-Bangladesh Economic Corridor After Xi-Tareque Talks in Beijing

China has expressed interest in giving Bangladesh full support to advance the proposed China-Myanmar-Bangladesh Economic Corridor (CMBEC), which would link China’s Yunnan province with Myanmar and Bangladesh. The announcement came in a Chinese Foreign Ministry statement issued after bilateral talks between President Xi Jinping and Prime Minister Tareque Rahman at the Great Hall of the People in Beijing on Friday.

The visit is Tareque Rahman’s first trip to China since taking office in February.

According to the Chinese Foreign Ministry, Beijing is willing to support Bangladesh in moving forward with the proposed economic corridor. The two countries also agreed to explore cooperation in new areas including artificial intelligence, green and low-carbon development, healthcare and education.

Bangladesh joined President Xi’s flagship Belt and Road Initiative in 2016, aimed at linking Asia, Africa and Europe through infrastructure development.

After the meeting between the two leaders, Chinese Foreign Ministry spokesperson Guo Jiakun told a regular press briefing that the two sides had agreed to work together on port and water resource management projects. Referring to the Teesta River Comprehensive Management and Restoration Project, Guo said, ‘The Teesta River Comprehensive Management and Restoration Project is a highly important public welfare project, to which Bangladesh attaches the highest importance. China is fully prepared to provide necessary assistance and support for this project to the best of its ability.’

Earlier on Friday, Tareque Rahman met Xi Jinping at 10am local time. During the talks, the Bangladeshi prime minister sought China’s cooperation in narrowing the bilateral trade deficit, implementing key infrastructure projects and modernising existing industrial establishments in Bangladesh.

According to a media pool report, Tareque Rahman told Xi, ‘To reduce the trade deficit with China, we seek your support in diversifying our export products.’

Tareque Rahman specifically requested greater access to the Chinese market for Bangladesh’s fresh mangoes, jackfruit, guava, aquatic products including fish and frozen food, rawhide and pharmaceutical products. The prime minister also sought Chinese support to modernise Bangladesh’s existing industrial units.

Chinese customs data show that China bought only $1.3 billion worth of goods from Bangladesh last year. Those imports included $153 million in human hair used as raw material for wig production, $80 million in yarn and $78 million in jute products.

Prime Minister’s adviser Rashed Al Mahmud Titumir told Reuters that the two leaders also discussed strengthening bilateral defence cooperation further. However, no specific agreement was signed in that sector. On Thursday, 13 memorandums of understanding were signed during a meeting between Chinese Premier Li Qiang and Tareque Rahman.

According to World Bank data, Bangladesh currently owes China $6.2 billion, while the Beijing-based Asian Infrastructure Investment Bank has extended another $2.3 billion in loans. By comparison, India’s loans to Bangladesh stand at $1.6 billion.

Separately, data from the American Enterprise Institute show that Chinese companies have invested about $7.7 billion in Bangladesh, with half of that amount going to the energy sector.

Economist Intelligence Unit senior analyst Chim Lee told Reuters that China appears to have become more cautious in overseas lending and investment in recent times. Lee said, ‘At present, China is placing greater emphasis on strategic transport corridors that have broader regional potential. From this perspective, Bangladesh is in a somewhat different position than Central Asia or Myanmar.’