Bangladesh-China Relations: A Growing Concern for India? Today, we will discuss the recent developments in Bangladesh-China relations and their potential impact on India.
Bangladesh’s Increasing Dependence on China
Recently, Mohammad Yunus, the head of Bangladesh’s interim government, visited China and signed several agreements. One of the most concerning aspects of this visit is Bangladesh’s interest in purchasing Chinese fighter jets.
Key Issues for Bangladesh
- Strengthening China’s presence in Bangladesh
- Negotiating lower interest rates on Chinese loans
- Securing financial and military assistance from China
According to international reports, Bangladesh has urged Chinese President Xi Jinping to reconsider the high interest rates on its loans. While Xi has not made any commitments, he has indicated that China may review the issue. Currently, Bangladesh’s total debt to China stands at approximately $6 billion, and this figure is expected to rise in the future.
China’s Debt-Trap Diplomacy
Both Sheikh Hasina (former PM) and Mohammad Yunus are aware of China’s debt-trap strategy. However, due to economic challenges and a lack of alternative funding sources, Bangladesh continues to seek financial assistance from China. When Sheikh Hasina was in power, she sought a $20 billion loan from China, but Beijing only offered a mere $100 million, which was seen as humiliating.
With Hasina’s departure, China is now closely monitoring Bangladesh’s economic stability before approving any significant loans. Meanwhile, Mohammad Yunus has managed to secure $2.1 billion in Chinese investment, but most of this consists of non-committal promises rather than actual loans.
The Teesta River Project: China Replaces India?
One of the most controversial moves by Mohammad Yunus has been inviting China to manage the Teesta River project, which was earlier meant to involve India. The Teesta River, originating from Sikkim, is crucial for Bangladesh’s agriculture and water supply. This sudden shift towards China is being seen as an anti-India move.
Interestingly, China has not made any official commitments yet. The Chinese media has only emphasized that Bangladesh-China relations have entered a “new stage,” as per Yunus’ statement. However, on a practical level, no major agreements have been finalized.
Will PM Modi and Mohammad Yunus Meet at the BIMSTEC Summit?
Given Yunus’ pro-China stance, it is highly unlikely that PM Narendra Modi will meet him during the upcoming BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) summit.
China’s hesitation to provide large-scale loans and its cautious approach towards over-expansion indicate that Beijing is closely evaluating its financial commitments. This means that while Yunus may want to replace India with China in multiple sectors, China itself is not fully committed to deepening its engagement with Bangladesh.
For India, this situation requires careful diplomatic handling to ensure that its strategic interests in Bangladesh remain secure.
What do you think about this development? Should India be concerned about Bangladesh’s growing ties with China? Let us know in the comments below!
Yunus is heading a caretaker team which is not an elected body. Does he represent a country? Can he? If not, how come he entered into an international treaty that, too, for such a long period!? What would happen when an elected government takes over? Moreover, it was a temporary arrangement in Bangladesh.