Bangladesh and China’s top diplomatic officials are set to meet today, Tuesday, in Beijing, following an invitation from Chinese Foreign Minister Wang Yi. Representing Bangladesh, Foreign Affairs Advisor Touhid Hossain is attending the meeting. A memorandum of understanding (MoU) on water resource management between the two nations is expected to be finalized after the meeting. If all goes as planned, the MoU will facilitate the exchange of data related to the Yarlung Zangbo-Jamuna River system, as China constructs a hydropower project upstream on the Yarlung Zangbo River. The meeting will also highlight the 50th anniversary of diplomatic relations between the two countries.

Touhid Hossain departed Dhaka on Monday for his first bilateral visit to China, scheduled to return on Friday after a three-day stay. Besides formal talks with the Chinese Foreign Minister, he will meet China’s Commerce Minister Wang Wentao and the Chairman of the China International Development Cooperation Agency (CIDCA), Luo Zhaohui.

Following the Beijing meeting, Touhid Hossain will travel to Shanghai to participate in a discussion at the Shanghai Institute for International Studies (SIIS). Additionally, he will engage with Shanghai Chamber leaders and visit facilities focusing on electric vehicles, robotics, and agricultural processing industries.

Key issues for Bangladesh during the discussions include obtaining concessions on Chinese loans and enhancing cooperation in health and water resource management. On China’s agenda, priorities include integrating Bangladesh into the Global Development Initiative (GDI), establishing a cultural center in Dhaka, and exploring commercial aircraft sales through China Southern Airlines.

Bangladesh plans to request reduced interest rates and extended repayment terms for loans, specifically under two schemes: Preferential Buyers Credit (PBC) and Government Concessional Loan (GCL). Bangladesh aims to reduce PBC interest rates from 2% to 1% and extend repayment periods from 20 to 30 years. Similarly, it seeks to lower GCL rates from 3% to 2% and lengthen the repayment duration from 20 to 30 years. Additionally, Bangladesh will propose increasing CIDCA’s funding limit for individual projects from $350 million to $500-$600 million and extending duty-free access to Chinese markets for another three years.

China, on the other hand, is expected to push for progress on establishing a Chinese cultural center in Dhaka and discuss commercial aircraft sales through China Southern Airlines. Economic cooperation discussions may also include expediting the modernization of Mongla Port, a project previously entrusted to China but delayed due to procedural issues.