Jinping hosts Bangladesh's Yunus in Beijing: A new regional challenge with India watching

Chief Adviser of Bangladesh Muhammad Yunus - File Photo

Chinese Premier Xi Jinping met with Bangladesh's Chief Adviser Muhammad Yunus in Beijing on Friday, news agency AFP reported. The meeting comes amid strained ties between Bangladesh and India, and the former looking for new allies.

Yunus is on a four-day visit to China to strengthen ties and attract investment. Earlier, he attended the Boao Forum for Asia in Hainan. This is his first bilateral visit since taking office in August 2024 and coincides with 50 years of Bangladesh-China diplomatic relations.

China rallies support

Ahead of the meeting, Yunus called on Beijing to reduce interest rates for Chinese loans and waive commitment fees on Chinese-funded projects.

Before his meeting with Jinping, Yunus held discussions with several Chinese officials, seeking support in an array of development projects. He called for a a reduction of interest rates for Chinese loans from three per cent to 1-2 per cent to Bangladesh and sought a waiver of commitment fees on the Chinese-funded projects in Bangladesh.

China is Bangladesh's fourth-largest lender after Japan, the World Bank and the Asian Development Bank, with total loans disbursed since 1975 coming to USD 7.5 billion, according to a report in the Daily Star newspaper of Bangladesh.

A day ahead of the scheduled talks between Xi and Yunus, China signalled its desire to expand ties with Dhaka in a changed Bangladesh scenario, state-run BSS news agency reported.

Yunus told the Chinese vice-premier about Bangladesh’s firm support and commitment to the One China policy, adding that Dhaka takes pride in being the first South Asian nation to join China's Belt and Road Initiative.

Why it should concern India

Ahead of his meeting with the Chinese Premier, Yunus sent a formal proposal to India for a meeting with PM Modi on the sidelines of the BIMSTEC Summit in Bangkok next week. New Delhi is yet to respond to the proposal.

This came amid strained bilateral relation between the two neighbouring countries after the August 5, 2024 regime change in Bangladesh when Prime Minister Sheikh Hasina’s 16-year Awami League regime was toppled and she virtually fled to India.

Yunus’ meeting with Jinping can be interpreted as a signal of China’s growing interest in engaging with key figures in Bangladesh, in an attempt to cultivate alternative channels of communication and influence in the region.

Moreover, China's vast economic resources and investment potential could be used to incentivize cooperation and influence policy decisions in Bangladesh, while diminishing India's economic influence in the region.

Enhanced China-Bangladesh ties might lead to greater Chinese presence in the Bay of Bengal, impacting India's maritime security interests. China's involvement in infrastructure projects, such as port development in Bangladesh, could have strategic ramifications for India.