1. China snubs India, decides to give $24 bn to Bangladesh

China snubs India, decides to give $24 bn to Bangladesh

This will be Bangladesh's biggest foreign credit line till now which will help it build a seaport, railways and power plants.

By: | New Delhi | Published: October 14, 2016 4:11 PM
The Chinese president's trip aims at boosting China's involvement in projects related to infrastructure. The Chinese president’s trip aims at boosting China’s involvement in projects related to infrastructure.

In an apparent snub to India, China is all set to sign off over $24 billion to Bangladesh on Loans during President Xi Jinping’s visit on Friday. This will be Bangladesh’s biggest foreign credit line till now which will help it build a seaport, railways and power plants. The Chinese president’s trip at boosting China’s involvement in projects related to infrastructure at a time when India is pushing investments in the neighbouring country.

Japan has also got involved in Bangladesh, offering finance at low low interests to build power complex and a port, increasing the competition for influence in the country. China hopes to finance around 25 projects and is also hoping to build a deep sea port, Bangladesh junior finance minister MA Mannan was quoted as saying in media reports.

Jiangsu Etern Co Ltd, a Chinese company signed an agreement worth $1.1 billion to improve the power grid network in Bangladesh. China is eager revive a plan to build a deep sea port in Sonadia which has been on hold for years, reports added. The Chinese president is visiting Bangladesh on his way to a BRICS summit in Goa on Saturday and sunday.

His trip to the neighbouring country has come at a time when Prime Minister Narendra Modi is trying to boost ties with neighbouring countries. In 2015, he had announced a $2 billion credit line during a visit to Dhaka.

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