China’s ambassador to Bangladesh spoke about economic relations between the two countries. The creation of a special zone could boost investments by 50 per cent. For China, the country is also strategic in view of its Maritime Silk Road initiative.

Dhaka (AsiaNews/Agencies) – An economic zone can boost Chinese foreign direct investment (FDI), Chinese Ambassador Ma Mingqiang told Bangladesh’s The Daily Star newspaper. This could mean a “50 per cent increase” in FDI.

Chinese “Private companies are investing everywhere,” Ma explained. “If they are confident enough and are not left alone, they will be coming in more numbers.”

In fact, last year, Dhaka set aside a separate economic and industrial zone in Chittagong for Chinese investors.

In his interview, the ambassador said that China has provided grants and concessionary loans to Bangladesh with the interest rate set at 2 per cent.

Historically, Chinese loans to Bangladesh had mostly been hard in nature, but the government is ready to step up the flow of funding.

His government was also considering Bangladesh's plea to lower the interest rate to the standards of the World Bank and the Asian Development Bank.

Already, a number of Chinese companies were involved in several projects in Bangladesh, some still underway. As such, for China’s top diplomat in Bangladesh, they were fully capable in terms of their technological expertise and financial power.

However, in some cases they were not familiar with circumstances, legal complexities, social factors and atmosphere in other countries, which might cause some delay.

Beijing was currently involved in several mega projects in Bangladesh with loans and grants in the areas of water treatment plant, tunnel under the Karnaphuli River, construction of railroad and bridge, establishment of refinery data centre for telecom, among others.

It was also assisting construction of the Dhaka-Cox's Bazar broad-gauge railway track and setting up of a coal-based power plant.

Speaking about China’s 21st Century Maritime Silk Road initiative. Ambassador Ma said the plan was exclusively China’s but would be designed by all stakeholders. “It's a very much inclusive project,” he explained, “and everybody will get benefit from it.”

In this context, he said Bangladesh had unique opportunities to grow and develop as it was a bridge between Southeast and South Asia and its location was strategically very important.

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