China to sign $24 billion in loans to Bangladesh, overtakes PM Modi’s $2 billion credit line

Xi's trip, the first by a Chinese president in 30 years, is aimed at boosting China's involvement in infrastructure projects at a time when India is pushing investments of its own in Bangladesh, a country New Delhi considers its area of influence.

By: Reuters | Dhaka/beijing | Updated: October 14, 2016 3:45 pm
china, xi jinping, indo china trade, jinping in bangladesh, narendra modi, indo china relations, chinese investment in india, bangladesh, jinping bangladesh visit, india news Prime Minister Narendra Modi and Chinese President Xi Jinping before delegation level talks, in New Delhi. (Express File Photo by Anil Sharma)

China is set to sign off on loans worth over $24 billion to Bangladesh during President Xi Jinping’s visit on Friday, Dhaka’s biggest foreign credit line to date that will help it build power plants, a seaport and railways.

Xi’s trip, the first by a Chinese president in 30 years, is aimed at boosting China’s involvement in infrastructure projects at a time when India is pushing investments of its own in Bangladesh, a country New Delhi considers its area of influence.

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Japan, helped by India, has also got involved in Bangladesh, offering finance at low interest rates to build a port and power complex, sharpening competition for influence in the country of 160 million people located on the Bay of Bengal.

China plans to finance around 25 projects, including a 1,320 megawatt (MW) power plant, and is also keen to build a deep sea port, Bangladesh junior finance minister M.A. Mannan said.

“Xi’s visit will set a new milestone. (A) record amount of loan agreements will be signed during the visit, roughly $24 billion,” he told Reuters.

Among the proposed projects are highways and information technology development, he said. “Our infrastructure needs are big, so we need huge loans.”

China’s Jiangsu Etern Co Ltd signed a deal worth $1.1 billion to strengthen the power grid network in Bangladesh, the company said on Thursday. Beijing is especially keen to revive a plan to build a deep sea port in Sonadia which has been on hold for years, officials said. Xi is visiting Bangladesh on his way to a BRICS summit of the world’s leading emerging economies in Goa, India.

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His trip comes at a time when Prime Minister Narendra Modi is leading efforts to boost ties with neighbouring countries, from Sri Lanka to Nepal, by offering them a share of India’s fast-growing economy. Last year PM Modi announced a $2 billion credit line during a visit to Dhaka, but China looks set to go well beyond that.

Zhao Gancheng, director of South Asia Studies at Shanghai Institute for International Studies, said both India and China supported development in Bangladesh, and that it did not have to be one or the other. “I really don’t think there is a zero sum game going on in Bangladesh between China and India. Bangladesh welcomes both Chinese and Indian investment…” said Zhao.

Bangladesh has backed Xi’s “One Belt, One Road” initiative to boost trade and transport links across Asia and into Europe, seeing it as an opportunity to lift growth. India has reservations about the plan, amid worries that it is an attempt to build a vast zone of Chinese influence.

Beijing had proposed an economic corridor linking Bangladesh, Myanmar, China and northern India, but New Delhi did not seem keen on the idea, Zhao said. “Bangladesh has an enormous need for investment, and I don’t think it’s going to become a site for strategic competition, a game between the great powers or a pawn,” he said.

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  1. M
    Mr Barry
    Feb 2, 2017 at 6:37 pm
    Do you need Business or personal Loan?lt;br/gt;Do you wish to refinance your company?lt;br/gt;Our company is based in Asia, and Europe. We give out loan to any individual and company at 2% interest rate yearly. For more information email
    Reply
    1. A
      Ajit
      Oct 14, 2016 at 10:53 pm
      So Bangladesh got 60% of what stanis got without wagging of tail or compromising on National interest. s are too cheap and give Punjabis bad name everywhere. The only concern is that Xi is like Aurengzeb and not sure if he will see it through before things starts happening in Beijing.
      Reply
      1. T
        Trun
        Oct 14, 2016 at 1:22 pm
        Isnt it a surgical strike by Chinese ?
        Reply
        1. R
          Rattihallirao
          Oct 14, 2016 at 3:19 pm
          China is already in stan's doorstep and us leaping un to the eastern part that is Vietnam, myanmar and Bangadesh. For sure China will have a major stake or influence in east and west of India. PM is playing with Dragon which has firm grip in the region. Such gimmicks can do only eye wash for the electorate. Indian economy in doldrums and no solid proposal or action is coming forth. Media is busy in focussing stan almost daily. Some surgical strike is required to mitigate this falsehood.
          Reply
          1. J
            John
            Oct 14, 2016 at 11:50 am
            Let us consider facts. Proposals are like BHUMI POOJA...call me when the building is ready. What happend to40B loan to PAK from China? What about 24B investments in India? China had to shut down their own STOCK ExCHAnge to prevent complete CRASH, one year ago. They are shutting down many plants due to pollution, excess capacity and UN- employment though not alarming is rising. THIS IS JUST A BIG DRAMA...
            Reply
            1. V
              Virendra Sason
              Oct 14, 2016 at 7:52 am
              US says no alloy as 21st centuary will of business interests. It seems to me that after 100 years there will be one religion MONEY, MONEY, MONEY, MONEY, MONEY instead of HINDU, MUSLIM, CHRISTIAN, SIKH, BUDHIST....
              Reply
              1. W
                W.R.
                Oct 14, 2016 at 2:36 pm
                Cow Ur!ne drinker Modi should take back $2bn and should build some toilets for poor in India. He is making Indians look like fool at international level. No one takes him seriously.
                Reply
                1. D
                  Deeptanshu Verma
                  Oct 14, 2016 at 10:14 pm
                  It is amazing how China is trying to outmaneuver India with Bangladesh by showering money and some Indians here see this only as a personal defeat for Modi. All this "feku shown his place" talk. Do you think Modi is personally going to be impacted if China muscles into Bangladesh. What is happening with people's sense.
                  Reply
                  1. G
                    Gopal
                    Oct 14, 2016 at 2:47 pm
                    I am sure that it makes the editors of this paper very happy. For them, it would be good if Indian relationships in the neighbourhood were disrupted. Perhaps, that could mean the return of terror on our eastern borders as well.
                    Reply
                    1. G
                      Gruham Bendakaluru
                      Oct 14, 2016 at 8:38 am
                      Why would any Hindu want them to "return" to Hinduism? India helped them to liberate themselves from the stanis, and they are thankful about our help. They have supported us always...even against stanis who are also Muslims. Isn't that enough proof that Bangladesh is already close to us...without being part of the Sanatan Hindu Dharma ....and very far away from the Saudi Jihadists?
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                      1. C
                        COLSANDHU
                        Oct 14, 2016 at 5:42 pm
                        The media can fool lay people but not experts. China is hollow inside and boat-loads of Chinese are illegally coming to the West and many drown in the process. In North America Chinese ladies who have escaped poverty are working overtime in houses of disrepute. No one goes to China to work from the West since China is too poor. lt;br/gt;lt;br/gt;China is tightly linked to the Jews thus the U.S. Jewish media does propaa for communist China. Due to Jewish influence China has THE-MOST-FAVORED-TRADE-STATUS from the USA. To this day no genuine enemy of USA has received this. Thus most money in China is under the control of the Jews. The Jews are running the show on the back and using China as a front, though China has also made some (not the fake figures which are circulating) money in the process.lt;br/gt;lt;br/gt;Modi has inherited a powerful military machine the third strongest on this planet. We owe much to DRDO-USSR-RUSSIA for this. We must further enlarge it and use this intelligently. lt;br/gt;lt;br/gt;Kashmir just needs more troops and improvement in intelligence. Tiny stan must realize she can not keep Kashmir (India) destabilized any more and her backers will leave her as they did in 1971. India is also too strong as of now and 1.3 billion Indians are united.lt;br/gt;lt;br/gt;Also while we keep good terms with the Jews they must not be allowed to disrupt the time-tested and solid Indo-Russia relations. Our media is petty penetrated by the U.S. Jewish media thus independent and nationalistic Indians must stay vigilant. also NEVER DROP OUR GUARD.
                        Reply
                        1. I
                          ivan agnelo
                          Oct 14, 2016 at 7:52 am
                          Sure this 24 billion dollars will end up with nothing much actually spent. Just like the billions in MOU that our state govt sign. what actually comes in iz debatable.
                          Reply
                          1. B
                            BharatK
                            Oct 14, 2016 at 8:15 am
                            Correct: Bangla is more than 95% words from Sanskrit = Bangla is based on Sanskrit, with about 95% words from Sanskrit.
                            Reply
                            1. B
                              BharatK
                              Oct 14, 2016 at 8:13 am
                              You are a Hindu by culture, as Indonesian muslims say. Think, what you do Hindus do not do? Except reading a book from Arab country and performing namaj, you do everything as a Hindu does. It is culture which makes a society, not religion. And language is the most important cultural parameter. Bangla is more than 95% words from Sanskrit, do you know it? And Bangla is the most Sanskrit-based language than an other Indian subcontinental language.
                              Reply
                              1. K
                                kamath Ramesh
                                Oct 14, 2016 at 10:50 am
                                China is just showing its financial might. But they can't do it for long. They did this with Nepal but Nepal realized it soon and again back with India. We as Indians should destroy chinese financial might by boycotting chinese goods.
                                Reply
                                1. K
                                  kapil
                                  Oct 15, 2016 at 6:39 am
                                  good, if it all it happens without chineses master plan of proxy war.
                                  Reply
                                  1. R
                                    Ramakrishnan
                                    Oct 14, 2016 at 9:41 am
                                    Money alone cannot purchase friendship. The US has spent billions on stan and still could not purchase their friendship. India has a shared cultural and linguistic affinity with Bangladesh.
                                    Reply
                                    1. M
                                      Manu USA
                                      Oct 14, 2016 at 6:58 am
                                      China is spreading and buying from dumping goods into us. Indians be careful not to buy stuff from China.lt;br/gt;China is dumping cheap stuff everywhere. They will do same In stan n Bangladesh to compete n pump their economy.lt;br/gt;China got almost $3 trillion reserves, 10 yes than India. China is biggest copy cat n corrupt rising power. India has to be strong or get killed.
                                      Reply
                                      1. H
                                        HILARY
                                        Oct 14, 2016 at 8:36 am
                                        I fully agree with fellow commentators that we should give up the goods made in China. Like Mahatma hi making Indians give up the goods made in England during the agitation for freedom. But I have a problem through which am sure my fellow commentators can guide me. Every mobile telephone starting from the high end iPhone to the cheapest mobile that is used in India and other parts of the world are made in China. Every laptop and every personal computer used and sold in this world is made in China. Almost all cameras, all high-end television sets that are used in the world including in India are made in China. The silk sari worn by most Indians are from China made yarn. Almost 80% of consumer goods which Indians run after are made in China. 80% of the pharmaceuticals in India are made out of bulk drugs imported from China. Unfortunately, I find it difficult to give up these things because, I may be left with nothing.
                                        Reply
                                        1. M
                                          Mashid
                                          Oct 14, 2016 at 1:05 pm
                                          Indian and Bangladesh relation should have been that of America and Israel but unfortunately either plays too much of a big brother or becomes too Hindu and makes Bangladesh to Muslim. You gotta ever bangladesh is a county based on language not religion. We practise religion but could care less if someone Ian Jew or Hindu or Buddhist or chistian. lt;br/gt;So it is times to respect a neighbour who's economic indicators are almost at par with yours. We are your friend, at least we think so, and like in friendship, as equals. lt;br/gt;A word of caution, don't forget what religion has done to stan. Don't lose track in pursuit of religion. Religion and politics and diplomacy are separate. stan mixed up and became a failed state. Saying it cause Bangladesh has genuine respect for India as a friend and neighbor.
                                          Reply
                                          1. M
                                            mohan
                                            Oct 14, 2016 at 8:06 am
                                            Better accept the truth fact that in international politics there is no brother, no sister. This is a harsh reality of Geo Political World. when one side of river breaks down, other side of the river is built up. Chanakya Neeti says that a wise enemy is better than a foolish back-stabbing friend. The Recession hit Russia, spiralling stan and fake growth China will have a very difficult time ahead. After the decline of the Soviet empire, the Bolshevik Oligarchs started controlling the Chinese economy through City of London and Hong Kong
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