Prime Minister Sheikh Hasina recently completed a visit to China (July 8-10, 2024), which held great importance for Bangladesh. The meeting with Chinese President Xi Jinping was held Wednesday afternoon at the Great Hall of the People. Xi Jinping made his last discussion at a recent meeting on the sideline of the 15th BRICS Summit in Johannesburg, South Africa. 

▲Chinese President Xi Jinping met with Bangladeshi Prime Minister Sheikh Hasina (Xinhua News)

The Bangladesh Prime Minister also met with Chinese Prime Minister Li Qiang at the Great Hall of the People on Wednesday morning. Li Qiang has announced $1 billion in financial assistance for Bangladesh, adding new dimensions to Bangladesh’s development.

After the meeting, Bangladesh and China signed several Memorandum of Understandings(MoU). Cooperation in the economic and banking sectors, trade and investment, digital economy, infrastructure development, assistance in disaster management, construction of the 6th and 8th Bangladesh-China Friendship Bridge, agro-export from Bangladesh, and communication among the people have been signed.

In the meeting with Xi Jinping and Li Qiang, all topics regarding bilateral relations were discussed. Issues relating to the Rohingya, business and commerce between the nations, and development cooperation were all raised and discussed at length.

The financial support pledged by PM Li Qiang is a massive opportunity for Bangladesh. Proper and effective use of the funds will add a new dimension to the country’s development. However, if not used correctly, it can also cause serious harm. Some mega projects in Bangladesh are not profitable and do not significantly contribute to the country’s economy. Therefore, they must consider the country’s economy’s profitability, implementation, and significance when picking new projects.

Considering the country’s history of corruption, experts have warned that corruption will likely increase if such a massive amount of money is not used correctly. Proper and transparent use of this money must be ensured. For this, effective monitoring and accountability systems should be introduced so that no money is wasted or corrupted.

During this visit, 21 MoUs and agreements between the two countries were signed to strengthen cooperation. Under the BRI (Belt and Road Initiative) project, infrastructure development will be conducted in Bangladesh. Various more agreements were signed to increase trade and investment. The Education and Cultural Exchange agreement was signed to improve both aspects. China also promised that it will help Bangladesh gain BRICS membership.

In addition, China will back Bangladesh to resolve the Rohingya crisis, and China’s role in solving this crisis may be necessary. The Rohingya refugee problem is a severe humanitarian and economic challenge for Bangladesh. If China plays an active role in solving this crisis, it will be a significant boost for Bangladesh.

PM Hasina’s visit to China has unveiled a new horizon for Bangladesh. If appropriately used, China’s $1bn financial support will take the country’s economy to new heights. Picking need-oriented mega projects, ensuring zero corruption and full transparency, and developing China-Bangladesh relations are essential for the country’s overall development. China’s cooperation with Bangladesh has unveiled a new horizon and will positively impact the country’s economy. However, the country’s development must progress through this opportunity’s proper and effective use. 

This article was first published at Dhaka Tribune, Bangladesh, July 15, 2024, 

https://www.dhakatribune.com/opinion/op-ed/352144/china-s-financial-assistance.

RCAS Commentary-China’s Financial Assistance.pdf