Since 2016, China’s economic activity in Bangladesh has attracted criticism from observers in India. The critics feared that Beijing could ...
Since 2016, China’s economic activity in Bangladesh has attracted criticism from observers in India. The critics feared that Beijing could use trade and investment to influence Dhaka’s decision-making.
This pattern became more pronounced in 2020, after New Delhi began restricting Chinese investment in April, and border clashes between Chinese and Indian troops began in May.
The events precipitated a new media cycle, wherein China’s relationship with Bangladesh was described in the context of India’s relationship with China.
It was triggered by a trade concession.
Media reports that Bangladesh accepted a trade concession from China emerged on June 19, days after the deadliest clash between China and India in Ladakh occurred.
The concession was like export promotion schemes offered by other developed economies. It could limit Bangladesh’s trade deficit, and encourage investment in its export industries.
While Bangladesh had been eligible for the concession for several years, it did not take it up. The concession overlapped with the Asia Pacific Trade Agreement and had stricter rules of origin.
Dhaka’s reservations appeared to fade as the Covid-19 economic slowdown began.
Dhaka likely wanted to encourage domestic sourcing, and higher value exports. This could backstop its effort to become a middle-income country by 2024.
Military crisis
But reporters in India were concerned about the military crisis in Ladakh, and the potential for a wider conflict. To them, it looked...
