Bangladesh’s Minister of Transport and Roads, Obaidul Quader, emphasized the country’s balanced diplomacy by acknowledging India as a time-tested political ally and China as a crucial partner for development. His remarks were made ahead of Prime Minister Sheikh Hasina’s visit to China, scheduled for July 8, during which she will focus on trade and investment cooperation. Speaking at an event in Dhaka, Quader hailed the historical bond with India, rooted in the 1971 Liberation War, while simultaneously recognizing China’s role in facilitating Bangladesh’s rapid infrastructural and economic development.
Quader stressed that under Sheikh Hasina’s leadership, Bangladesh has successfully maintained strong ties with both India and China, dismissing criticism from the opposition, which has questioned her foreign policy decisions. “India is a tested friend of 1971. The ties between the two countries were forged by the blood-stained 1971,” Quader remarked, adding that India’s support during Bangladesh’s liberation struggle had established a political bond that remains significant today.
At the same time, he pointed to China’s indispensable role in helping Bangladesh achieve its developmental goals, citing numerous infrastructure and development projects undertaken with Chinese assistance. Quader highlighted the strategic importance of working with both India and China, ensuring that Bangladesh could leverage its relationships for national benefit.
The upcoming China visit is expected to focus heavily on trade and commerce, with Bangladesh seeking an extension of a $7 billion line of credit to boost its trade sector. This loan, if secured, would allow Bangladesh to purchase Chinese goods, helping stabilize its economy, which has been under pressure due to declining dollar reserves. Al Mamun Mridha, General Secretary of the Bangladesh China Chamber of Commerce and Industry, also noted that Hasina is likely to appeal to Chinese investors to relocate their manufacturing operations to Bangladesh, given the country’s low production costs and favorable investment environment.
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In a significant development, Bangladesh and China have already reached an agreement to conduct trade in Yuan, further reducing dependence on the U.S. dollar. This comes as a key point in Bangladesh’s strategy to manage its financial pressures while diversifying its trade relationships.
The timing of Hasina’s visit to China, coming just weeks after her trip to India, is particularly noteworthy. While in India, Prime Minister Narendra Modi had announced India’s commitment to sending a technical team to Bangladesh to discuss conservation and management of the Teesta River, a shared water resource that has been a point of contention between the two neighbors. The Teesta River is critical to both northern Bangladesh and the Indian state of West Bengal, and the two countries have struggled to reach a long-term water-sharing agreement.
Bangladesh is currently evaluating offers from both India and China regarding a proposed dredging and development project along the embankments of the Teesta River. During a media interaction, Hasina emphasized that the final decision on the project would be based on which proposal offers the most benefits to the Bangladeshi people, including considerations of loan terms, repayment capacities, and long-term benefits.
As Hasina prepares for her China trip, observers are keenly watching how Bangladesh navigates its complex relationships with two of Asia’s largest powers. The visit to Beijing is expected to yield significant economic agreements, furthering Bangladesh’s goal of becoming a regional hub for trade and investment.
