From Development to Partnership: An Exploratory Study of Bangladesh-China Economic Relations in International Business During (2005-2026)

The Bangladesh-China economic relationship has attained a dynamic status whereby both parties have become involved in a classical donor-reward dynamic and an elaborate partnership of strategy and perfect financing. This is an exploratory study whereby the development of partnership evolution as it was in the period between 2005 and 2026 is critically analyzed. The chapter highlighted the ongoing economic development growth of Bangladesh and China's presence as a global economic powerhouse, driven by initiatives such as the Belt and Road Initiative (BRI). The study used a qualitative research methodology, which involved content analysis of policy documents, trade data, trade MOUs, and elite interviews; the paper discusses the forces, aspects, and issues of this bilateral connectivity. The results show that China is generally considered the largest trading partner and a significant source of foreign direct investment (FDI). In addition, it is the foremost supplier of military and critical infrastructure for Bangladesh. The mega projects like the Padma Bridge Rail Link, the Karnaphuli River Tunnel, and numerous power plant and seaport modernizations highlighted strong strategic developmental cooperation that basically plays a dynamic role in the South Asian economy. Though the cooperation between Bangladesh and China has also highlighted some key challenges, including concern of trade deficit for Bangladesh and debt sustainability linked to Chinese concessional loans, in addition, it also talks about the impact in the long run on Bangladeshi local industries and strategic autonomy within the intensifying US-China rivalry in the Indo-Pacific as well as the China-India rivalry in South Asia. Based on theoretical and strategic analysis, this study argues that while the Bangladesh-China relationship creates great development opportunities, in addition, likewise, it creates disproportionate dependence on each other, which creates certain risks. The research suggested that by reducing risk, such as concern about debt traps, and ensuring trade balance by increasing the export ratio, Bangladesh can utilize the advantage of its trade relationship with China. Finally, this paper has put forward policy recommendations to be implemented in Bangladesh, which can be very effective in seeing this partnership achieve sustainable growth while preserving its economic sovereignty and balancing foreign policy. This study added a meaningful contribution to the literature on South Asian political economy and small-state agency in international business and unveiled the dynamics of China-based economic diplomacy in South Asia.

Development to partnership, Belt and Road Initiative (BRI)

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