A media report saying that China is offering low-interest loans worth $9 billion to Bangladesh attracted a lot of attention on Monday, following analysts' suggestion that Bangladesh has become a focus for the growing geopolitical rivalry between Beijing and New Delhi.
Bangladesh wants to use the low-interest loans to build at least six rail projects connecting its capital Dhaka with key domestic industrial areas and the Indian border, Bloomberg reported over the weekend. According to the article, Bangladesh's railway network, much of which dates back to British colonial times, is being updated under a $30 billion plan to renovate stations and lay new track. It is obvious that China is ready to play an active role in helping Bangladesh realize its ambitions of upgrading its railway system.
China's strategic intentions to extend its trade tentacles across Asia through the promotion of the Belt and Road initiative are believed to be behind Bangladesh's enthusiasm for rail, but this is worthy of debate. According to media reports, Bangladesh has become the world's second-largest exporter of garments with more than 4 million workers engaged in related industries, so it is normal and natural for the country to call for the accelerated development of international trade by improving its infrastructure and renovating its transit systems. Cheap financing from China expressly for this purpose is irresistible for Bangladesh. However, India may feel uncomfortable with the increased economic interaction between China and Bangladesh, which to some extent has long been seen as India's own backyard. But this is not necessarily a bad thing if Bangladesh's enhanced economic ties with China can put some pressure on New Delhi to pay more attention to strengthening economic cooperation with Dhaka.
In fairness, Bangladesh hasn't benefited very significantly from India's rapid economic growth. It seems the time has come for India to think about how to participate more actively in regional cooperation. Bangladesh's geographic location makes it an irreplaceable link connecting South Asia, Southeast Asia and China, so efforts to improve infrastructure in Bangladesh will be a key step in achieving the goal of developing the Bangladesh-China-India-Myanmar Economic Corridor to connect markets in India, China and Southeast Asia, the world's three most active economic regions.
However, this goal will be difficult to accomplish if India's involvement is absent. New Delhi may need to place more focus on looking east and participating in regional cooperation to connect South Asia, Southeast Asia and China together, forging a new economic belt.
The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn