China President visited Bangladesh

•  During visit of Xi Jinping to Bangladesh, both countries has signed 40 agreements, including loan and investment deals in the infrastructure sector worth over USD 20 billion, as they upgraded their ties to a strategic partnership.
• This is the first official state visit by Chinese head of state to Bangladesh in three decades since President Li Xiannian’s visit in March 1986.
• The two countries also have agreed to jointly advance China’s One belt and road (OBOR) initiative.
• They also agreed to establish institutional cooperation in areas of maritime issues and counter-terrorism.

What is One Belt, One Road (OBOR) Initiative?

• At the heart of One Belt, One Road (OBOR) lies the creation of an economic land belt that includes countries on the original Silk Road through Central Asia, West Asia, the Middle East and Europe, as well as a maritime road that links China’s port facilities with the African coast, pushing up through the Suez Canal into the Mediterranean.

Analysis:

• Geo-politically, Bangladesh is witnessing growing rivalry between China and India, particularly in the era of weakening US role in the region.
• In this scenario, it signifies growing importance of the Bangladesh in South Asia’s economics and geo-politics. Bangladesh maintains very strong military ties with China. Even Bangladesh’s economic relations with China have traditionally been dominated by trade.
• The bilateral trade between China and Bangladesh was about $12.5 billion in 2014 and Bangladesh’s export to China has not exceeded even $1 billion.
• However, in this new type of emerging big power relationship in the South Asia region relatively smaller countries like Bangladesh are adjusting and maintaining balanced economic and geo-political relations, particularly with China and India.
• However, strategic and economic footprint of China is increasing in South Asia, it must also be remembered that China is still a relatively new player in the region.
• India has multi-pronged ties, rooted in culture and history, with most countries in South Asia, especially with Bangladesh. India should build on this historical foundation to capitalize on its own strategic and economic ventures in Bangladesh.
• This must be put into context given the volatile nature of Bangladeshi politics, and the fact that prickly issues like the stalled Teesta water pact plays an important factor in the run-up to elections in Bangladesh.
• India and Bangladesh successfully implemented the Land boundary agreement which has positive implications on both country's relations. A fruitful resolution of Teesta water has been delayed due to the vagaries of domestic politics in India. It’s time for all political actors in India to rise above parochial agendas to salvage the transformation of India-Bangladesh relations that will have beneficent impact on the entire region.

By: Vishal