Dhaka is urging Beijing to reduce interest rates

Ahead of his upcoming visit to China from January 20-24, Foreign Adviser Touhid Hossain announced that Dhaka will request Beijing to lower interest rates on Chinese loans and extend the repayment period to up to 30 years to ease economic pressures. In a media briefing yesterday at the foreign ministry, he also mentioned that Bangladesh will seek quota and duty-free access to China for a period of at least three years after graduating from the least-developed country category in 2026.

"Commerce and economy will be the main focus of my visit. We will address our concerns and explore how China can assist. Discussions will also include project loans, and we aim to maximize the benefits of these engagements," Hossain said.

He further explained that Bangladesh would seek a reduction in interest rates, more flexible loan conditions, and the complete removal of the commitment fee that China charges for keeping a line of credit available. Officially, China is Bangladesh's largest trade partner, with annual trade reaching $25 billion, although Bangladesh's exports to China are under $1 billion.

"We import heavily from China, but it is crucial because many of the materials we import are used in our exports," Hossain added. "We will also aim to increase our exports to China."

During his four-day visit, Hossain plans to meet with Chinese Foreign Minister Wang Yi, deliver speeches at two research organizations in Beijing and Shanghai, and visit various Chinese industries, including electric vehicle and food processing plants. Bangladesh will also renew a memorandum of understanding (MoU) with China on the provision of hydrological information for the Brahmaputra/Yalunzangbu river during flood season. This MoU was first signed in 2008.

When asked about the Teesta river development project, Hossain remained non-committal, stating that he would not discuss it during the visit. 

Additionally, Hossain will seek Chinese support to create a favorable environment for the repatriation of Rohingya refugees to Myanmar. "China has significant influence over Myanmar, so they can assist. While repatriation may not happen immediately due to the current security situation in Myanmar, we must continue to work toward it," he said.

On Bangladesh’s potential participation in China’s Global Development Initiative, he expressed a positive outlook, noting that it is an ongoing process.

Regarding recent tensions over India’s border fencing, Hossain emphasized that Bangladesh will address any issues as they arise, but acknowledged that resolving such matters may take time. "We cannot solve these issues overnight," he said. "Generally, no country is expected to fence within 150 yards of the international border. In some cases, exceptions are made when necessary. We are aware of the situation and will discuss it with India."

Hossain concluded by reiterating that Bangladesh seeks to maintain balanced relations with the US, China, and India in order to safeguard its national interests.