Dhaka, Beijing to ink 20 MoUs but loan deal unlikely

"There is no loan agreement on the list. An MoU will be signed on economic cooperation. If parameters are met under this MoU, we may go for a loan in future."

— Foreign Minister Hasan Mahmud

• Hasina to meet Chinese president, premier on July 10
• Development, economic cooperation to get priority

Dhaka and Beijing will sign around 20 MoUs, including some on trade and economic cooperations, during Prime Minister Sheikh Hasina's visit to China that begins today.

However, the two countries may not sign any loan agreement on reserve or budget support.

"There is no loan agreement on the list. An MoU will be signed on economic cooperation. If parameters are met under this MoU, we may go for a loan in future," Foreign Minister Hasan Mahmud said at a press briefing at the foreign ministry yesterday.

He said different countries make different proposals for loans, but Bangladesh does not accept all. For example, the World Bank had offered a loan after refusing fund for the Padma Bridge project, but Dhaka did not accept it.

"The reserve situation is improving in Bangladesh and the trend will continue," he said.

Dhaka and Beijing were discussing a loan of $5 billion in Yuan for trade facilitation amid foreign currency shortage. However, the countries were yet to agree on the terms and conditions of the loan. Besides, there were also discussions on budget support from China, according to diplomatic sources.

Hasan Mahmud said the two countries will announce the inauguration of some development projects.

The MoUs expected to be signed will be on economic and banking sectors; trade and investment; digital economy; infrastructure development; assistance in disaster management; construction of the 6th and 9th Bangladesh-China Friendship Bridge; export of agricultural products from Bangladesh; and people-to-people connectivity.

"Bangladesh will seek China's assistance in the areas of investment and trade; and financial assistance and repatriation of Rohingyas to their homeland. At the same time, Bangladesh will continue to provide support to China as its friend in the global context," he said.

Hasina is going to China at the invitation of Chinese Premier Li Qiang. The visit from July 8 to July 11 comes two weeks after her visit to India. This will be Hasina's first visit to China since her new term began in January and five years after her last visit in 2019.

Analysts believe the back-to-back India and China visits are Bangladesh's way of balancing relations between the two Asian powers.

Hasan Mahmud said Dhaka is discussing Chinese cooperation on the Southern Integrated Development Initiative (SIDI), which will include the development of Mongla Port.

On Teesta project, he said, "As it is a common river of Bangladesh and India, India has made a proposal, and we have to consider it first. It is also good that China made a proposal. As India has made a proposal, we think it is good. If they [China] want, it will be discussed during the visit."

Asked about Dhaka's position on Beijing's interest in upgrading the strategic partnership with Bangladesh to Comprehensive Strategic Cooperative Partnership, the foreign minister said, "Our relationship with China is deep, it is a strategic relationship. This will get stronger."

During a briefing on July 4, Chinese foreign ministry spokesperson Mao Ning said the leaders of the two countries will have an in-depth exchange of views on how to deepen the friendship; on expanding beneficial cooperation; and on regional and international issues of mutual interest.

The PM will reach Beijing around 6:00pm today. Tomorrow morning, she will make a courtesy call on Asian Infrastructure Investment Bank President Jin Liqun.

She will then attend the "Summit on Trade Business and Investment opportunities between Bangladesh and China". Hasina will then hold a bilateral meeting with Wang Huning, chairman of the 14th National Committee of the Chinese Peoples' Political Consultative Conference.

On July 10, she will meet Chinese Premier Li Qiang at the Great Hall of the People and will attend a reception. The meeting will be followed by a banquet in her honour.

That afternoon, Hasina will hold a bilateral meeting with Chinese President Xi Jinping at the Great Hall of the People.

Finance Minister AH Mahmood Ali; Foreign Minister Hasan Mahmud; Prime Minister's Private Industry and Investment Adviser Salman F Rahman; State Minister for Commerce Ahasanul Islam Titu; State Minister for Power, Energy, and Mineral Resources Nasrul Hamid; State Minister fort Posts, Telecommunications, and Information Technology Zunaid Ahmed; Foreign Secretary Masud Bin Momen and other high officials of the ministries concerned will accompany Hasina.