Dhaka needs smart negotiations for Chinese investment deal
Emphasis on attracting Chinese investment
to infrastructure
development apart from FDI in
economic zones
UNB
Having a strategic location, Bangladesh has a tremendous opportunity to gain from China in a very bigger way and the forthcoming visit of Chinese President Xi Jinping with subsequent healthy cooperation could be a game-changing one for stronger Bangladesh, reports UNB.
Speakers at roundtable in Dhaka yesterday came up with the views stressing that Dhaka needs smart negotiations with Beijing as Bangladesh is now witnessing a very high momentum of Chineseinterest here.
We obviously need very smart negotiations with China. Were hoping that the negotiations would be made in a way that itll end up with a win-win solution, said Executive Director of Centre for Policy Dialogue (CPD) Prof Mustafizur Rahman.
The economist said maintaining good governance having institutional capacity and efficient implementation capacity is also important as Bangladesh will be dealing with huge Chinese investment over the next five years and currently there is a discussion about US $ 23 billion Chinese investment.
As were talking about big and large projects and we really cant afford to make any mistake, said the CPD Executive Director mentioningthat Chinese investment can make a big change in the country.
President of Bangladesh Enterprise Institute (BEI) Farooq Sobhan said the ultimate challenge for Bangladesh is to have a proactive diplomacy. We have to be much more engaged with the international community and with the region including big neighbours.
Prof Mustafizur Rahman laid emphasis on attracting Chinese investment to infrastructure development apart from FDI in economic zones.
On dealing with big investment figures surfaced through media reports, he said the success will depend on Bangladeshs ability to absorb those.
Earlier, the CPD Executive Director said it is important to indentify which projects should be prioritizsd having a clear idea on conditionalities. If we look at Chinese investment outside, its 56 percent in concessionary, 36 percent grants and about 8 percent is interest free.
He said Bangladesh needs a big investment but it should also look at the terms and conditions while availing of Chinese financial support, including local sourcing, tendering process and procurement process all these things are important.
The CPD economist said some regional initiatives BBIN, BCIMEC. Trans-Asian rail and road networksall these will be implemented over the next two decades.
Bangladesh will have to really negotiate with China keeping not only the problems and challenges of today but all problems and challenges of tomorrow, he added. Prof Rahman said it will be good for Bangladesh if Bangladesh can divert some of these big investments to BBIN motor vehicles implementation process.
He said strategically what China is thinking now that it really wants a Southern gateway to the Bay of Bengal Sri Lankan High Commissioner in Dhaka Yasoja Gunasekera said both India and China have been growing, and there is huge growth opportunities for others countries in Asia as well. So, my message is lets grow together.
Acting President of Dhaka Chamber of Commerce and Industry (DCCI) Humayun Rashid said some 17 MoUs will be signed during the Chinese Presidents Dhaka visit. To get the right things, we need to go for smart negotiations.
Consul of Singapore Consulate in Dhaka Darryl Lau said the biggest change in Asia, and the world, is the rise of China.
Chinas GDP grew at an average of more
than 10 percent per year for over 30 years, growing more than 25 times. Its external trade has become huge. China is now the biggest trading partner of almost every Asean country, including Singapore, he said.
Chairman of the Board of Governors of Bangladesh Institute of International and Strategic Studies (BIISS) Munshi Faiz Ahmad, former caretaker government adviser Tapan Chowdhury, Prof Emeritus of Brac University Ainun Nishat, among others, spoke at the programme.
Chinese President Xi Jinping is scheduled to arrive here on October 14.
The visit is taking place three decades after Chinese President Li Xiannian visited Bangladesh in March 1986.
The Daily Star arranged the roundtable titled Bangladesh-China Relations: Connecting the two Economies at The Daily Star Centre, attended by current and former diplomats, experts and business leaders.
