Why in News ?
China-Bangladesh And BRI taking new lead. Chinese President ready with Bangladesh leaders to better align the two countries’ strategies and jointly promote the construction of his multi-billion dollar Belt and Road Initiative (BRI) to take the strategic partnership of the two countries to new heights.
- Both nations are in the events of 45th anniversary of the establishment of the bilateral diplomatic relationship.
- Bangladesh became a part of the Belt and Road Initiative in 2016
About the News
- China aims to better align development strategies with Bangladesh, step up cooperation under the framework of the BRI and push forward the China-Bangladesh strategic, cooperative partnership to a new level.
- China-Bangladesh And BRI
- With over $26 billion Chinese investments and $38 billion dollars funding commitments, Bangladesh is one of the largest recipients of China’s massive infrastructure project.
- China has also offered zero-tariff treatment to 97% of Bangladesh’s exports by adding 5,161 more items to the existing list of 3,095 duty-free products.
- One of the major projects under the BRI is the Bangladesh Power System Upgrade and Expansion Project, which aims to provide electricity connections to over 2.5 million rural people.
Impact over India
- India having concerns with BRI as one portion of the corridor passes through Pakistan-occupied Kashmir.
- China initiated over $60 billion as part of the China Pakistan Economic Corridor (CPEC),
- China has stepped up its huge infrastructure investments in Bangladesh, Nepal, Sri Lanka and Maldives rising concerns of its growing influence in India’s immediate neighbourhood.
- India and US raise concerns over debt-diplomacy of China
- As part of this policy recently Sri Lanka handed over its Hambantota Port to a state-run Chinese firm in 2017 for a 99 years’ lease in a debt swap amounting to $1.2 billion.
- Malaysia has also deferred several projects under the BRI, citing cost revaluation.
- Djibouti, Kyrgyzstan, Laos, the Maldives, Mongolia, Montenegro, Pakistan and Tajikistan – are among the poorest in their respective regions and will owe more than half of all their foreign debt to China.
- India was the only country in the eight-nation Shanghai Cooperation Organisation grouping which opposed the initiative.
Way Forward
- Among the issues which have seen such a delay is the water-sharing deal on the Teesta river that has ti be negotiated.
- Proposal from China on the management and restoration of the Teesta river under process.
- India needs to work both on maintaining good ties with Bangladesh and also countering the influence of the initiative through strategic alliances.
Belt and Road Initiative
- The BRI seeks to build rail, maritime and road links from Asia to Europe and Africa in a revival of ancient Silk Road trading routes.
- BRI, earlier known as One Belt One Road (OBOR).
- South-east Asia to Eastern Europe and Africa, Belt and Road includes 71 countries that account for half the world’s population and a quarter of global GDP.
- Improving regional integration, increasing trade and stimulating economic growth are the major aim.
- Belt and Road Initiative is expected to cost more than $1tn.
Source : The Hindu
Topic
GS II : India and its neighbourhood- relations
Current Affairs Compilation : 5 October 2020