I. China and Bangladesh are closely and friendly neighbors. The two peoples enjoy a profound and traditional friendship. Since the two countries established diplomatic ties 32 years ago the bilateral political, economic, military and cultural cooperation has achieved fruitful results and bilateral relations got increasingly mature. China and Bangladesh announced the establishment of comprehensive partnership in 2005, marking a new development stage of bilateral ties.
It is an unswerving principle of the Chinese government and a major component of China's diplomatic policy of "being a good neighbor and good partner" with neighboring countries to consolidate and develop China-Bangladesh relations. Both sides may pay great attention to the following aspects to reinforce the bilateral relations:
To strengthen the people-to-people exchanges in various departments at all levels between the two countries. Exchanges lay down the foundation for mutual understanding and cooperation of the two countries. The energy and agricultural departments of both sides might establish the mutual visit mechanism and maintain regular communications so as to inject new dynamism to the growth of bilateral relations.
To deepen the mutually beneficial cooperation in economy and trade. Economic cooperation is the important basis for China-Bangladesh friendship. Bangladesh is the third largest trade partner of China in South Asia. The bilateral economic and trade cooperation has developed rapidly in recent years, with bilateral trade volume approaching US$3.2 billion in 2006. Both sides should tap potential to keep expanding the trade volume. China has offered zero-tariff treatment to 84 categories of Bangladeshi products to the Chinese market, of which China hopes Bangladesh makes best use. China will continue to encourage competitive and reputable Chinese businesses to make investment and conduct mutually beneficial cooperation in Bangladesh.
To expand cultural and educational exchanges. The two countries enjoy promising prospects of cooperation in such fields as education, tourism and human resources training. China will create more beneficial conditions for the non-governmental exchanges between the two countries.
To promote regional and international cooperation. Bangladesh enjoys unique geological advantages in promoting various forms of regional and sub-regional cooperation. In response to the "Look-East" policy of Bangladesh, China expects to make joint efforts to push forward regional cooperation. It supports a more active role of Bangladesh in such regional organizations as the South Asian Association for Regional Cooperation (SAARC), the Economic Cooperation Forum among Bangladesh, China, India and Burma and the ASEAN Regional Forum. China and Bangladesh have maintained sound communications and collaboration in international affairs, which should be further strengthened.
II. China encourages not only foreign businesses to invest in China but also Chinese enterprises to conduct economic, trade and investment cooperation with other countries on the basis of equality and mutual benefit. Chinese enterprises have strong interest in making investment abroad and will make independent decisions taking into account the local market and investment environment.
III. China and the Association of Southeast Asian Nations (ASEAN) member countries are committed to building the trans-Asian railway linking Kunming and Singapore in a bid to facilitate personnel and cargo circulation. If the road project linking China, Burma and Bangladesh is completed, another access to the sea will be opened in the southwest region of China and the economic growth of regions along the road will be stimulated.
IV. As an important regional organization in South Asia, SAARC has played an active role of promoting local economic and social progress, peace and stability. With ever-maturing mechanism, steady progress of cooperation and accelerating opening up, SAARC enjoys a bright future of development.
As a neighbor of SAARC, China has been paying close attention to and supporting the cooperation process of SAARC. In early April this year, China, as an observer, attended the 14th SAARC summit for the first time and announced the direction, vision and specific projects of cooperation with the organization, pushing China-SAARC relations into a new stage.
Following the summit, China has faithfully implemented its commitment and successfully held the workshop on "Understanding Modern China" for South Asian diplomats and the workshop for the officials in charge of poverty alleviation policy and practice from South Asian countries. All countries in South Asia including Bangladesh sent delegates to the workshops. Before the end of this year China will also launch a number of cooperation projects with SAARC.
China expects to conduct exchanges and expand pragmatic cooperation with SAARC in the spirit of equality, mutual trust and win-win partnership in a bid to make active contributions to pushing ahead the cooperation process of SAARC and promoting peace and development in South Asia.
V. Trade imbalance has existed between China and Bangladesh for many years, which is mainly caused by the economic structures of the two countries. China holds that it is unrealistic to solve the problem only by addressing trade imbalance. Other solutions such as investment should be taken into consideration. Therefore, China hopes Bangladesh further improves the investment environment to attract more investment from Chinese enterprises.
