China wants FTA with Bangladesh by 2026

China wants to implement a free trade agreement with Bangladesh by 2026, said Yao Wen Chinese Ambassador in Dhaka on Thursday.

“We are in the stage of feasibility studies, but we’re looking forward. It will be completed by the end of this year. After feasibility studies, we will go to the stage of physical negotiations. So our objective is that by the year 2026, there will be free trade arrangements between China and Bangladesh,” the envoy said, responding to a question on how to bridge the huge trade imbalance, which is tilted towards China.

The question-and-answer session took place following a seminar on the ‘Belt and Road Initiative’ jointly organised by the Chinese Embassy and the Diplomatic Correspondents Association of Bangladesh (DCAB).

Expressing his views on bridging the trade deficit, he said that China doesn’t want a single surplus from Bangladesh.

“The imbalance exists due to the structure of the trade, so we have to find a way out to remove this imbalance,” he said, adding, "FTA is one of the ways to narrow down the deficit."

He also mentioned that Chiba has raised investment in Bangladesh, through which the trade imbalance can be reduced.

“We want more investment in the manufacturing sector of Bangladesh. So we encourage Chinese companies to invest in ICT, food processing, renewable or new energy, and other new sections so that it can have better capacity to diversify exports” he stated, adding “In this way, we can reduce the imbalance, and that is the main objective”.

The Chinese envoy also said that as a friend of Bangladesh and as a country with a large amount of investments, enterprises, and personnel in Bangladesh, China sincerely hopes that all stakeholders in Bangladesh would take the fundamental interests of the people into full consideration, properly resolve their differences, and jointly maintain political and social stability.

“This year is the pre-election year in Bangladesh. Many friends from the media have come to ask me what is China’s observations are on the current political situation in Bangladesh. I want to underscore that the upcoming election is an internal affair of Bangladesh. As a matter of foreign policy, China adheres to the principle of non-interference in the internal affairs of other countries and opposes any force interfering in the internal affairs of other countries,” he said.

He said the future of Bangladesh would be determined by the people of Bangladesh.

Asked what kind of election China wants to see in Bangladesh, as many countries have already been suggesting their views, the Chinese Ambassador said, “Bangladesh’s election is its internal matter.  Our policy is very clear; you know, we’re not intervening, but we do hope that after the election there will be stability, life will return to normalcy and our cooperation will continue. Definitely, that is our conviction.”

“And I want to say to the people who have been fighting for democracy in the last 50 years since establishment of Bangladesh, so I believe all of us know what sort of democracy you need.”

“And that’s my conviction that the election will be conducted in the parameters of constitution and law.”

Asked whether China, like some other countries, will call for dialogue among the political parties, he said, it’s the political parties that can answer the question, not he.

“But hopefully, we just want to see, you know, that the differences can be bridged,  the uncertainty can be gotten rid of, lives can get back to normal, and political and social stability will remain,” he said.

Responding to comments on the blockades and hartals and their impact on Chinese nationals living here, the Ambassador said Chinese investors are keen to invest in Bangladesh and they want to see stability.

“China wants to see that over 20,000 Chinese nationals living in Bangladesh and Chinese properties are protected, he said, adding that so far, all Chinese people and assets here are properly protected by the authorities.

He said, “We feel safe so far. But as you mentioned, we sincerely hope that the uncertainty and all this violence, you know, can be over.

“So, all the stakeholders or political parties will settle their differences and maintain political and social stability together, taking the fundamental interests of the people of Bangladesh into consideration.”

The Chinese envoy said that both the countries are eager to settle bilateral trade through local currencies, and initial experiments are underway in this regard.

Responding to a question, he said that if Bangladesh sought help from China to address foreign exchange challenges, his country would stand by Bangladesh to resolve the issue.

Responding to a question on Rohingya repatriation, the envoy said that China hopes to see the implementation of a pilot repatriation of Rohingyas by December to start a process of sustainable repatriation.

On BRI, Mr Wen said that over the past decade, the BRI has gotten off the ground, grown rapidly, and produced fruitful outcomes.

“The 3^rd Belt and Road Forum for International Cooperation concluded last month was of a great success. A total of more than 10,000 representatives from 151 countries and 41 international organisations took part in the Forum. Once again, the BRI demonstrated its tremendous appeal and global influence. In his keynote speech, Chinese President Xi Jinping underscored that mankind is an interdependent community of shared destiny.”

He noted that on the journey of Belt and Road cooperation, China and Bangladesh have always been good friends with mutual trust and good partners in seeking common development.

He mentioned that over the past seven years, China has built 12 highways, 21 bridges and 27 power and energy projects in Bangladesh, contributing to turning the dreams of the Bangladeshi people into reality.

Over the past seven years, the stock of Chinese investment in Bangladesh has grown from USD 241 million to nearly USD 1.4 billion, Mr Wen mentioned, adding that at present, there are nearly 700 Chinese enterprises operating in Bangladesh.

“These enterprises are active practitioners deeply cultivating in Bangladesh. They assume social responsibilities in Bangladesh and make significant contributions to economic development, environmental protection, community services, public welfare and charity by creating more than 550,000 jobs in Bangladesh”.

“Last week, the Chinese Economic and Industrial Zone (CEIZ) in Chittagong was officially launched, and the enterprises held a ceremony of signing documents of investment intention. It is the first Chinese industrial zone in Bangladesh and a trail-blazing achievement,” he added.

The envoy pointed out that on the journey of Bangladesh’s modernisation, the BRI is the most compatible and befitting development cooperation initiative with Vision 2041 and Smart Bangladesh.

China stands ready to work with Bangladesh to tighten the ties of cooperation and embrace a new stage of Belt and Road cooperation of higher quality at a higher level, he mentioned.

“We shall fully leverage our economic complementarity and strengthen cooperation on infrastructure development, ICT, new energy, agriculture and so on, thereby ushering in the next golden decade of Belt and Road cooperation.”

About Chinese policy on the ongoing Middle East conflict, he said, “Unfortunately, the recent escalation of the Israeli-Palestinian conflict plunged the Middle East into war once again. In just one month, more than 10,000 civilians have died in the Gaza Strip, the inferno on earth."

“The UN should play its due role in resolving the question of Palestine. The UN Security Council needs to shoulder important responsibilities for this, build international consensus as quickly as possible, and take real measures to that end.

“The root cause of the question of Palestine lies in the long delay in realising the dream of an independent State of Palestine and the failure to redress the historical injustice suffered by the Palestinian people. Israel has the right to statehood, so does Palestine. The answer to the question is a two-state solution and an independent State of Palestine,” he said, highlighting the Chinese stance on the issue.

On the Rohingya issue, he said, all stakeholders have increasingly become aware that repatriation is the only long-term and most effective solution to the crisis. This year, by far, under the mediation of China, Bangladesh and Myanmar have reached an important consensus on the early initiation of repatriation. Officials from the two sides have maintained frequent and direct talks in this regard.

“With joint efforts, we managed two rounds of “come & talk” missions by Myanmar officials and one “go & see” mission to Rakhine State by representatives of the displaced people and Bangladeshi officials. In this process, the displaced people gradually built up and enhanced confidence towards repatriation.”

China has also kept close contact with UN agencies and ASEAN states and called upon the international community to extend understandings and support to Bangladesh and Myanmar so as to create proper conditions for the early initiation of repatriation, he said.

President of the Chinese Enterprise Association in Bangladesh Mr Ke Changliang gave a presentation on the Chinese projects in Bangladesh.

Responding to a question, he said land acquisition remains a major challenge in implementing mega projects in Bangladesh. But the things are improving.

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