China’s BRI Massively Boosts Bangladesh’s Development

While writing about the Bangladesh-China friendship movements as well as Belt and Road Initiative (BRIs) contribution to the development of Bangladesh, it pushes me back to my childhood memories when I saw the Dragons and Great China Wall on the fancy calendar pages. My wondering eyes yielded a positive vibration about China that the country China means something mysterious achiever, something a massively shaped constructor and an incredibly rich heritage as well as heroism are crafted through the thousand years of its journey.

Carrying these seeds of positive cultural impression, roaming around in the present context to write on Chinas BRI economic philosophy and benefits for my country, I do see a glamorous echo of friendship.

In the last several years, due to the balancing shift of diplomacy and moving forward development policy led by Prime Minister Sheikh Hasina, the China and Bangladesh friendship has reached the height of a time-trusted partner.
China and Bangladesh have forged a strategic partnership based on shared interests and mutual benefits. The Chinese BRI makes its highly visible presence in every segment of Bangladeshs development arena. Apart from being a major trading partner, China came forward with cash, technology, and expertise to boost much-needed development in Bangladesh on the mission of completing Vision 2041.
 

China is implementing 21 bridges and 27 power projects in Bangladesh. Around 670 Chinese companies have already invested and showed interest in participating in Bangladeshs 100 economic zones.

BRI Boosting Bangladeshs Infrastructural Development  
 
China and Bangladeshs long-standing partnership strengthened since Bangladesh joined the BRI in 2017. The BRI is Chinas global development strategy to link East Asia and Europe by land and sea, and, this is how Bangladesh became a part of the six BRI economic corridors.

To achieve Vision 2041, according to the Asian Development Bank report, Bangladesh needs to invest 1.5% of its GDP in energy and $608 billion in infrastructure, and BRI is the key contributor to meet this demand.

China is massively investing in Bangladeshs energy projects. Chinese Ambassador Yao Wen termed these projects as "lighthouses" that led to the booming cooperation between the two countries.

A notable example of the cooperation is the Payra 1320MW ultra-supercritical coal-fired power plant, the largest of its kind in the country, which is expected to meet 10 percent of the national electricity demand.

China is also contributing to infrastructural development to boost connectivity. Some important road and bridge projects are the 8th Bangladesh-China Friendship Bridge, Dhaka Bypass, Dhaka-Khulna (N8) Project, Dhaka Elevated Expressway, and Dhaka-Ashulia Elevated Highway Project, the Padma Bridge Rail Link Project, and Dohazari to Coxs Bazar Railway.

China-funded or assisted key infrastructures to connect rural areas for the people who are charged up these days to get into more small trading to entrepreneurship exploration. Indeed, taking reference to the Padma Bridge, Bangladeshs first self-funded project with Chinese engineers and technology, has improved the connectivity and prosperity of the South and Southwestern region. It has shortened the travel distance and eased the congestion on waterways. The bridge is expected to boost the countrys GDP by 1% and cut poverty by 0.84% nationally.

Chinese projects are also introducing the country to sophisticated technologies, for example, the Bangabandhu Tunnel Project under the Karnaphuli River using a tunnel boring machine, a very first-time application in underwater excavation. As Bangladesh now has a tunnel boring machine in the country, the technology and experiences will be used in the underground portion of the countrys first metro-rail.
Besides technology transfer, revamping, and increasing circular economy, BRI projects are also benefiting the country by increasing connectivity and trans-border trade, in a sense, cross-border trade needs faster road and rail tracks.

Hence, the benefits from these BRI projects and other Chinese projects outweigh the cost of these projects massively and provide a Net Benefit for Bangladesh.

BRI Boosted Investment
According to the agreements signed during Chinese President Xi Jinpings visit to Bangladesh in 2016, Bangladesh will receive $26 billion for BRI projects and $14 billion for joint venture projects, totaling a $40 billion package.

Bangladesh has primarily seen BRI projects in the energy and transportation sectors, with infrastructure investment needs projected to reach 1.5% of GDP by 2040.

Chinese companies have been investing more in Bangladesh in recent years. The Bangladesh Investment Development Authority (Bida) reported that 15 Chinese companies invested directly in Bangladesh last year, and another $1.5 billion worth of FDI proposals were received. The Bangladesh Bank data reveals that the annual growth rate of FDI from China was 13.5%. In seven years, FDI from China rose from $56 million to $644 million, an 11.5-fold increase.

Bidas executive chairman Lokman Hossain Miah said, "We are working hard to attract more Chinese investments, and we are seeing positive results."

Calvin Ngan, president of the Overseas Chinese Association in Bangladesh (Ocab), predicted that the textile and clothing sectors would receive more Chinese investments in the near future, as Bangladeshs business environment has improved significantly in recent years."

BRI Injects Vast Employment Opportunity

According to government data, 670 Chinese firms operate in various sectors in Bangladesh. In the EPZ area, about 25% of investors are Chinese; so far, these enterprises have created approximately 600,000 employment opportunities for Bangladeshis.

According to a report by NIICE Nepal, Bangladesh has initiated the development of 100 Economic Zones on the communication lines across BRI, which will create 10 million job opportunities by 2030.
Another way that the BRI increases employment in Bangladesh is by enhancing the trade and connectivity of the country with other regions.

China a major trade partner
China is now Bangladeshs largest trading partner. The trade volume between the two countries is about $25 billion. Bangladesh mainly imports capital machinery and raw materials from China.

On the other hand, Bangladesh exports vegetables, frozen and live fish, leather and leather products, textile fibers, paper yarn and woven fabrics, garments, and apparel items to the country.

China implemented duty-free facilities on 97% of Bangladeshi products on 1 July 2020. Later, it was increased to 98%.

According to the Asian Infrastructure Investment Bank (AIIB), Bangladesh has the opportunity to increase its exports to China by $1.2 billion per year and $2.7 billion per year to other countries by 2030 if it can leverage BRI connectivity and cooperation.

Sahab Enam Khan, a professor of international relations at Jahangirnagar University said that the benefits of growing bilateral trade and Chinese investment in infrastructure will have a positive spillover effect in the trade and connectivity between the two countries.

Honoring the experts statements, I must choir, that Bangladesh will not fall into a debt trap as the government utilized most of the investment in profitable sectors like rail, and bridge which will further accelerate economic growth and generate revenue.

The writer is a contributor