Beijing : Beijing clearly intends to extend the China-Myanmar Economic Corridor to Bangladesh as part of its larger Maritime Belt and Road Initiative to boost its Indian Ocean presence.
Bangladesh secured proposed Chinese private sector investments worth $9.21 billion during Prime Minister Tarique Rahman's visit to China.
Major Chinese investments span energy, infrastructure, logistics, ports, manufacturing, education, and environmental protection sectors.
Chinese firms plan strategic investments in Mongla and Payra ports, enhancing Beijing's economic footprint in Bangladesh.
China's proposed hospital network near India's border has triggered strategic concerns among Indian security officials.
Bangladesh's newly-elected Prime Minister Tarique Rahman has secured nothing short of a jackpot during his recent five-day visit to China.
Apart from Chinese promises to help Bangladesh out with effective management of the Teesta river (dredging-water storage-embankment), the first time a Bangladesh prime minister has secured promises of substantial Chinese private sectors investment.
Eleven Chinese companies have proposed to invest $9.21 billion in Bangladesh in the next few years, sources in the Bangladesh Investment Development Authority (BIDA) told this correspondent.
The CEOs of these companies met Rahman on June 25 in Beijing. BIDA Chairman Ashik Chowdhury, who was present at this meeting, made a detailed presentation to the Chinese CEOs on the investment climate in Bangladesh. He specially pointed to incentives like five-year tax holidays for foreign investors.
BIDA sources later provided details of Chinese private sector investment commitments.
China Future Energy Group Holding Limited, specialised in petroleum engineering and gas field investment, proposed to invest $250 million to explore and develop gas fields.
Shanghai SUS Environment Co, Ltd, one of the world's leading waste-to-energy (WTE) investors and operators, has proposed to invest $890 million to develop WTE plants.
China Civil Engineering Construction Corporation, a Chinese State-owned contractor, investor, operator, has proposed to invest $650 million to develop and operate the Mongla Port Economic Zone to attract Chinese manufacturing industries, build bond warehouses for storing imports. This can turn Mongla into a new logistics hub, and create upto 50,000 jobs.
Interestingly, this project was earmarked for an Indian special economic zone by the Sheikh Hasina government but was later delisted by the Muhammad Yunus-led interim regime, citing delays in implementation because Indian firms failed to start work within the stipulated two-year period.
The Yunus administration also delisted another designated special economic zone for India at Mirsarai in Chittagong and decided to use the location for developing a military production facility.
Shenzhen Kaifa Technology has proposed to invest $250 million to manufacture electric smart meters in Bangladesh.
SF Express, China's largest logistics company, has proposed to invest $180 million in cold chain logistics and bonded warehouse facilities in Mongla to support e-commerce and export industries.
Huaxin Textile Industry has proposed to invest $190 million for expansion of recycled cotton/yarn production, manufacture of cylindrical lithium battery, building 200 MW solar power plant in the Payra Port Industrial Zone.
Zhongxin Environmental Protection Group has proposed in invest $165 million for establishment of an e-waste recycling and disposal industrial project in the Payra Port Industrial Zone.
CRRC Ziyan has proposed to invest $190 million to establish a rolling stock assembly plant through a joint venture with BMTF.
Sichuan Road and Bridge Group has proposrd to invest $450 million for investment in the Dhaka-Chattogram Highway as a public-private partnership project to enhance national connectivity and economic growth.
China Kepai Education Group has proposed $270 million to build a modern: Application-oriented university and vocational education industrial park desiged to accomodate 30,000 students in the long run.
China Shandong Zhongxin Pharmaceutical has proposed to invest $190 million to establish a large-scale Chinese medicinal herb cultivation industry in Bangladesh.
The enormity of these promised investments becomes clear when one looks at how much foreign private investment has come to Bangladesh in recent years.
The country in the last two years received net inflows of just $1.77 billion.
Bangladesh's total Foreign Direct Investment now stands at approximately $18.5 billion to $20 billion, with the majority of inflows driven by reinvested earnings and loans rather than new fresh equity.
The recent surge in investment was fueled by reinvested earnings ($434 million) and intra-company loans ($782 million), while fresh equity capital remained mostly stagnant at $554 million.
The United Kingdom, Singapore, South Korea, China, and The Netherlands account for the largest share of FDI in the country.
China also plans to develop a network of 1,000-bed superspeciality hospitals in towns like Nilphamari and Sylhet not far from the border with India.
"It appears China intends to reduce Bangladesh's dependence on India as a medical treatment destination. Since these hospitals are planned as gifts to Bangladesh, the purpose sounds more strategic than business," said Kolkata medical professional Dr Parthasharati Datta.
Indian intelligence officials say the planned Chinese investments are as much strategic as business.
While they suspect the planned hospitals could double up as covert intelligence outposts, Chinese projects in Bangladesh's Payra and Mongla ports could end up boosting Beijing's presence on the Bangladesh coast.
They align with the Chinese Economic and Industrial Zone (CEIZ) in Anwara in the country's major port city of Chittagong.
The Anwara Zone is a government-to-government project recently fast-tracked with a Taka 4,189 crore development budget.
The 800-acre hub is developed by the Bangladesh Economic Zones Authority (BEZA) and the China Road and Bridge Corporation (CRBC) to attract export-oriented manufacturing and create tens of thousands of jobs.
These investments on the Bangladesh coasts are not far from the China-funded deep sea port of Kyaukphyu in Myanmar's Rakhine province.
A refinery and an oil-gas pipeline from Kyaukphyu to Yunnan (southwestern China) makes up the basic contour of the China-Myanmar Economic Corridor, one of Beijing's critical land-to-sea access to bypass the Malacca chokepoint.
Two senior Chinese academics connected to think-tanks in Yunnan told this correspondent on condition of anonymity that Beijing clearly intends to extend the China-Myanmar Economic Corridor to Bangladesh as part of its larger Maritime Belt and Road Initiative to boost its Indian Ocean presence.
That is something that Delhi -- and Washington -- will be watch and be less than amused.
Subir Bhaumik is a former BBC and Reuters correspondent who worked as Senior Editor with the Dhaka-based bdnews24.com and the Mizzima media group of Myanmar.
He is a former fellow at the Oxford and Frankfurt universities and the East-West Center in the US. He was closely connected with the Track 2 Kolkata-Kunming Initiative between India and China.
