Though the second largest economy in Asia, next to Japan, China is the largest investor in teh Bangladeshi economy. Since 2003 it has far outstripped any other country’s investment.
The Bangladeshi delegation in China needs to pay attention to that fact and maintain that relationship through gentle coaxing and courting, though to strident ears that language might strike one as just so much humble supplication.
Hence we observe Prime Minister Sheikh Hasina Wajed informing Chinese investors that Bangladesh is a market awaiting investment, one imminently happy to work with eager investors seeking willing and flexible labor and contracts.
As the Daily Star reports:
Sheikh Hasina mentioned a “tax holiday, concessionary duty on imported machinery, avoidance of double taxation, remittance of royalty, technical know how, technical assistance fee, allowing 100% foreign equity, unrestricted exit policy and full repatriation facilities of dividend and capital on exit.”
Indeed, she tied previous investment in Bangladesh as a signal of the necessary –and necessarily broadening–continuance of the expected returns to investment.
“She said to facilitate Chinese investment in Bangladesh, China has already signed Agreement on Investment Promotion and Protection and Agreement for Avoidance of Double Taxation.
“The Bangladesh premier said at present, 55 Chinese enterprises with proposed investment of $292 million has been invested creating job for over 45,000 Bangladeshis.”
This is smart politics, after all. This may yet prove to be good policy.