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.