The two countries have signed nine separate bilateral agreements to strengthen their mutual relations. [17] Indian media and commentators should take note of the fact that this is only a trade concession offered by China and not a free trade agreement (FTA) between Dhaka and Beijing. Revenue accounts for almost a third of Bangladesh`s annual revenue from import tariffs. Dhaka is clear that it is precisely for this reason that it does not want to sign a free trade agreement, while China has long pursued it in favor of such an agreement. When relations between China and India deteriorated as a result of their border fighting, journalists and think tanks focused on a new trade deal between China and Bangladesh. Some have called it “charity,” “double deficit and debt trap,” or “diplomatic victory for China.” Some argue that Chinese companies are making low bids for the sole purpose of increasing costs or changing credit terms later. One survey showed that a quarter of China`s overseas investment failed in part for these reasons: 40 percent of respondents said price disputes had contributed to this; 27% said they were afraid of regulatory reviews. In 2005, Chinese Premier Wen Jiabao visited Bangladesh for an official visit on April 7 and 8. During this visit, various agreements were signed. On the transport side, China and Bangladesh have agreed to launch a direct air route between Dhaka and Beijing via Kunming. The Kunming-Chittagong road link through Myanmar is also envisaged. [22] The Chinese premier agreed to build the Chittagong Di-aluminum phosphate (DAP) fertilizer plant solely on loans granted rather than loans to suppliers. [27] In 2007, Chinese Vice Minister of Commerce Wang Chao visited Bangladesh with the purchasing delegation of 39 people.
It is the largest purchasing delegation ever to arrive in Bangladesh, with more than 10 companies ranked in China`s top 500 and some of them in the global top 500. One delegation reportedly purchased more than $50 million in Bangladeshi goods. [28] Both countries agreed to the construction of a Bangladesh-China Friendship Exhibition Center in Dhaka. [28] The volume of foreign trade between Bangladesh and China amounts to about $10 billion. .