During his four-day diplomatic visit to China, Bangladesh’s Foreign Adviser, Touhid Hossain, engaged in high-level talks aimed at securing financial relief for Bangladesh’s foreign debt. In a key meeting with Chinese Foreign Minister Wang Yi, Hossain proposed lowering the interest rate on Bangladesh’s Chinese loans from 2-3% to 1%. He also requested the waiver of commitment and management fees and sought an extension of the loan repayment period from 20 years to 30 years for both preferential buyer’s credit and government concessional loans. Wang Yi responded positively, agreeing to extend the maturity period for these loans and assured Hossain that China would look into the request to reduce interest rates.
Hossain’s meetings continued with Luo Zhaohui, Chairman of the China International Development Cooperation Agency, where he requested an increase in concessional loans, grants, and more funding for Chinese-backed development projects in Bangladesh. Luo indicated that China might consider funding larger projects in Bangladesh, some of which could be extended as grants, helping to lower the interest burden on Bangladesh.
The discussions also centered on several vital infrastructure projects, including the metro rail and the Southern Infrastructure Development Initiative (SIDI), key initiatives for Bangladesh’s economic development. In addition to financial matters, Wang Yi reaffirmed China’s commitment to supporting Bangladesh’s economic growth under the Belt and Road Initiative. Both sides expressed their intention to continue working closely on projects such as the Dasherkandi sewage treatment plant, the modernization of Mongla Port, and the expansion of digital connectivity, including the rollout of 4G services in Bangladesh.
Beyond these issues, the talks also addressed regional concerns, including the ongoing Rohingya crisis. Both nations committed to finding a lasting solution to the crisis, with China pledging continued engagement with Myanmar. Bangladesh also expressed concerns over China’s planned mega-hydropower dam on the Yarlung Tsangpo River in Tibet, although China reassured that the project would not affect water resources for downstream countries. Additionally, discussions touched upon strengthening health cooperation, with China agreeing to designate hospitals in Kunming for the treatment of Bangladeshi patients and supporting Bangladesh’s proposal for a Chinese hospital in Dhaka to mark the 50th anniversary of diplomatic relations between the two countries.