Financial Express :: Financial Newspaper of Bangladesh

Monday, 30 September 2013

China and Bangladesh: Strengthening regional cooperation

Muhammad Zamir
October 01 marks the 64th anniversary of the birth of the People's Republic of China. We are also passing through the
38th year of bilateral relations. I have followed with great admiration the continuous progress of China on the world stage
and watched it emerge as a giant that casts a long strategic shadow not only on other countries in Asia but also in the
rest of the world.
Beset by civil unrest, major famines, military defeats and foreign occupation in the 19th and the early 20th centuries,
China emerged as a regional power after Mao Zedong emerged victorious in 1949. The new China, encouraged by its
glorious past, struggled to overcome its existing challenges and moved forward with the help of its new socialist system.
Mao's successor, Deng Xiaoping and the subsequent leadership after 1978 shifted their focus on a more market-oriented
economic development process. This released the creative energy of the Chinese people and by the year 2000 their
national output had quadrupled. Since then, for much of its population, living standards have improved dramatically. The
room for personal choice has also expanded because of advances in information technology. Nevertheless, political
controls have also remained decisive. This synergy has since found expression in the phrase 'Chinese Dream'. It has
enhanced China's global outreach and participation in international organisations.
Internal reforms have contributed to China's achievement of major economic status. These include phasing out of
collectivised agriculture, gradual liberalisation of prices, fiscal decentralisation, increased autonomy of state enterprises,
creation of a diversified banking system, development of the stock market paradigm, rapid growth of the private sector
and opening up to foreign trade and investment. All these measures have enabled China (on a PPP basis that adjusts for
price differences) to become in 2012 the second largest economy in the world after the United States, having overtaken
Japan. China is also second to the USA in the value of services it produces.
This rapid economic expansion has, however, resulted in unwanted challenges - deterioration in the environment, notably
air pollution, soil erosion and the steady fall of the water table, especially in the northern regions of the country. These
factors have combined to create uncertain conditions which have led to loss of critically important arable land (in a
country with such a large population) because of erosion and rapid economic development. China, because of
manufacturing necessity, has also ended up being the largest importer of fossil fuel - oil, coal and natural gas. These
adverse consequences have now persuaded the Chinese authorities to seek additional energy production capacity from
sources other than fossil fuel, focusing more on nuclear and alternative energy development by using renewable energy.
In 2010-11, China faced high inflation resulting largely from its credit-fuelled stimulus program. Several tightening
measures have since helped to control inflation. There was however a downside to this - the GDP (gross domestic
product) growth slowed to less than 8.0 per cent for 2012. The economic slowdown in Europe and the USA also partially
contributed to this downturn. Chinese planners who are implementing the government's 12th Five Year Plan, are trying to
overcome the challenges through economic reforms and the increasing of domestic consumption in order to make the
Chinese economy less dependent on exports in the future. This rebalancing effort is being monitored very carefully by the
rest of the world.
China's latest once in a decade leadership change has taken place earlier this year. In March 2013 Mr. Xi Jinping and Mr.

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Financial Express :: Financial Newspaper of Bangladesh

Li Keqiang were elected by the Chinese National People's Congress as the President and Premier of the country. This new
team appears to have taken the common decision to implement a broad-ranging administrative re-structuring plan to
forestall any possibility of China sliding down the greased pole of economic progress. The Chinese measures are principally
directed towards reducing loss and diverting savings to more productive areas.
Effort is also being made to ensure that anticipated reforms do not suffer because of bureaucratic tangles. The Chinese
President has made it clear that the government aims to cut, reduce and simplify the process of review and approval of
investment projects to minimise the possibility of inconvenience and high costs involved when enterprises and individuals
try to obtain the required services necessary for their entrepreneurial efforts. Another important feature has been the
decision to decentralise effectively and to increase funding for local government units.
It is being hoped that successful realisation of these factors will facilitate the Chinese people to achieve their 'Dream'.
Efforts are underway to create the necessary administrative structure that will deal with the fallout of any social instability
that may arise because of the exercise. The Chinese leadership believes that if their plan can be implemented, it will help
the 300 million migrant workers who are struggling to integrate into urban China and will stop the widening of the gap
between the rich and the poor.
One can only hope that policy planners in Bangladesh will try to seriously study how China is trying to tackle their
problems. We need to do it because we have similar issues in our own country.
Bangladesh and China have enjoyed traditional bonds of friendship and multi-faceted cooperation for nearly four decades.
Our bilateral relations have steadily been consolidated through our common commitment to peaceful co-existence, mutual
trust and respect for sovereignty, territorial integrity and non-interference in internal affairs. Bangladesh has consistently
supported China's core issues related to its national interest - it's 'One China Policy' with regard to Taiwan and Tibet being
an integral part of China.
Economic cooperation and trade constitute important features of our comprehensive bilateral partnership. Both countries
are actively engaged in the sectors of agriculture, transportation and infrastructure development on the basis of equality
and mutual benefit. Aware of the growing trade imbalance, Bangladesh has requested China to provide preferential tariff
treatment to more Bangladeshi products and also boost bilateral investment. China understands that this is necessary in
the growing interdependence that characterises today's world, particularly in matters of trade, FDI and financial inflow.
Another area where China's cooperation with Bangladesh could be intensified is in the ready-made garments sector and in
the expansion of the renewable energy process. The RMG industry in Bangladesh could definitely gain in general from
Chinese investment. The Chinese manufacturers would also benefit from lower production and transportation costs. Their
support would be particularly appreciated in the increase and diversification of the manufacturing capacity of accessories
that are required for this sector. Similarly, we could gain from the Chinese technical experience and assistance in the
fields related to bio-gas, bio-fuel, wind and solar power. Bangladesh has already started its long journey on the path of
renewable energy. We have taken a few strides. This however has to gain in speed and dimension. China could help us in
his regard.
This effort towards bilateral cooperation has been particularly meaningful in Bangladesh accessing to research carried out
by Chinese scientists and agronomists in the sphere of agriculture - in hybrid rice cultivation technology, agricultural
machinery technology, exchange of crop resource data, advances made in agro-processing and in the sphere of training of
technical personnel.
The two countries have agreed to carry out sustainable cooperation on water resources management, hydrological data

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Financial Express :: Financial Newspaper of Bangladesh

sharing and flood control of the Yarluzangbu River (the Brahmaputra) in view of its importance for disaster reduction in
Bangladesh. At the request of Bangladesh, China has agreed to provide assistance for dredging of riverbeds in Bangladesh
and for capacity-building through training of required technical personnel.
Bangladesh and China are working together to facilitate cooperation in information and media technology, culture, health,
sports and tourism. Consistent with the interest of both countries in safeguarding respective national security and
promoting peace and stability in the region, there is cooperation between their armed forces and their law-enforcement
departments.
China and Bangladesh have, at every opportunity, reiterated their belief in strengthening regional cooperation within
South Asia. They have agreed to actively participate in and promote the BCIM (Bangladesh, China, India, and Myanmar
Economic Corridor) regional economic cooperation process. Bangladesh needs to take this process forward by actively
engaging with China's efforts to create a strategic regional integration. This may be done through the establishment of
overland connectivity - direct road and rail links to China via Myanmar.
Bangladesh can, and needs to learn from China on how to move forward from its present status to a high middle-income
country with all the attributes associated with development.
Muhammad Zamir, a former Ambassador, is specialised in foreign affairs, right to information
and good governance.
mzamir@dhaka.net
Copyright 2012
International Publications Limited.
All rights reserved

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