BRI & China

The Government of China proposed Belt and Road Initiative (BRI), as One Belt One Road (OBOR) which is also called New Silk Road, was initiated as an infrastructure development strategy in 2013 to invest in nearly 70 countries of the world [1]. As per the Vision and Action Plan, there are 8 sectors under the BRI i.e., Infrastructure Connectivity, Industrial Investment, Resource Development, Economic and Trade Cooperation, Financial Cooperation, Cultural Exchanges, Ecological Protection and Maritime Cooperation [2]. Bangladesh is one of the important strategic partners of the initiative and involved in the Bangladesh-China-India-Myanmar Economic Corridor (BCIMEC) under BRI [3].  

As a part of the commitment, the Prime Minister of Bangladesh and President of China signed a Memorandum of Understanding (MOU) on 14 October 2016 and witnessed the signing of a number of bilateral cooperation documents in the areas of joint construction of the BRI through cooperation in production capacity, information and communication, energy and power, diplomacy, marine, disaster prevention, mitigation and climate change during the visit of Chinese President Xi Jinping to Bangladesh [4]. According to the media reports, 27 MOUs and agreements amounting USD 40 billion which included construction 7 CFPs, were signed during the visit [5]. 

In the period of 2016-2019 after signing the agreements, the Chinese companies have signed 201 new engineering contracts in Bangladesh amounting USD 10.421 billion in addition to the turnover of USD 3.147 billion [6]. There are 79 companies registered as members of Bangladesh-China Chamber of Commerce and Industries (BCCCI) and involved in exporting goods & services from China to Bangladesh. The goods include (i) Cotton (ii) Boiler & Mechanical Apparatus (iii) Electrical Equipment & Machinery (iv) Optical Fibre (v) Fossil Fuel & Asphalt (vi) Knit Fabrics (vii) Vinyl Filaments (viii) Motor Vehicles and (ix) Plastic Products and (x) Steel Products [6]. 

Power Construction Corporation of China Limited (PCCL or PowerChina) is the largest Chinese construction company in Bangladesh which has been implementing 14 projects through its 20 subsidiaries amounting USD 4.7 billion [7]. 

Several coal-fired power plants to be installed under the MOU and agreements between BPDB and Chinese State-owned Enterprises (SOE). Interestingly, Chinese government has taken a plan to ensure ‘carbon dioxide emissions peak before 2030 and to achieve carbon neutrality before 2060’ in its policy document named Energy in China's New Era [8]. At the same time, more than 50% of CFPs in Bangladesh are backed Chinese banks and construction companies [9]. 

You can find the knowledge materials on BRI developed by BWGED here: 
  1. List of Projects under BRI in Bangladesh 
  2. List of Coal Power Plants proposed under BRI in Bangladesh 

References 
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  1. WB (2018). “Belt and Road Initiative”. World Bank, Washington D.C.: 29 March 2018. Retrieved from https://www.worldbank.org/en/topic/regional-integration/brief/belt-and-road-initiative accessed on 9 June 2019 
  2. NDRC (2015). Vision and Actions on Jointly Building Silk Road Economic Belt & 21st-Century Maritime Silk Road. The National Development and Reform Commission (NDRC), Ministry of Foreign Affairs (MOFA) and Ministry of Commerce (MOC) with authorization of the State Council of the People’s Republic of China, Beijing: 28 March 2015. p 13. Retrieved from https://www.beltandroad.news/action-plan accessed on 18 April 2019 
  3. PCC (2018a). "PowerChina to build its first power project in Bangladesh". PowerChina, Beijing: 17 April 2018. Retrieved from https://en.powerchina.cn//2018-04/17/content_37413301.htm accessed on 13 June 2019 
  4. BRP (2016). "Xi Jinping visits Cambodia and Bangladesh and meets with leaders of the BRICS countries with fruitful results". Belt and Road Portal (BRP), Beijing: 20 October 2016. Retrieved from https://www.yidaiyilu.gov.cn/yw/sxjdt/1878.htm accessed on 7 April 2019 
  5. Bdnews24 (2016). "Bangladesh, China sign 27 deals as President Xi visits Dhaka". The Bdnews24.com, Dhaka: 14 October 2016. Retrieved from https://bdnews24.com/bangladesh/2016/10/14/bangladesh-china-sign-27-deals-as-president-xi-visits-dhaka accessed on 6 February 2017 
  6. MOC (2019). "2018 Country (Region) Guide for Foreign Investment Cooperation-Bangladesh". Ministry of Commerce (MOC), People's Republic of China, Beijing: 28 December 2017 published on 29 January 2019. p 24.Retrieved from https://www.yidaiyilu.gov.cn/zchj/zcfg/6737.htm accessed on 26 May 2019 
  7. PCC (2018b). "PowerChina contributes to the Belt and Road". PowerChina, Beijing: 18 December 2018. Retrieved from https://en.powerchina.cn//2018-12/18/content_37423532.htm accessed on 13 June 2019 
  8. SCIO (2020). "Energy in China's New Era". The State Council Information Office of the People's Republic of China (SCIO), Beijing: 21 December 2020. Retrieved from http://www.scio.gov.cn/m/zfbps/32832/Document/1695135/1695135.htm accessed on 21 December 2020 
  9. Market Forces (2019). Choked by Coal: the Carbon Catastrophe in Bangladesh. 250.org, Bangladesh Poribesh Andolon (BAPA), Transparency International Bangladesh (TIB), Waterkeepers Bangladesh and Market Forces, Fitzroy: November 2019. p 12. Retrieved from https://www.marketforces.org.au/wp-content/uploads/2019/11/Choked-by-Coal_The-Carbon-Catastrophe-in-Bangladesh-full.pdf accessed on 28 November 2019
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