ENGULFED by India, its giant neighbour to the west, north and east, Bangladesh can look small. But it is the world’s eighth most populous country, with one of its fastest-growing economies. And its location, between India and South-East Asia, with a long littoral on the Indian Ocean, puts it in the thick of things, geopolitically speaking.
China clearly sees some potential. Xi Jinping, its president, visited last year and pledged $15bn in loans. China is Bangladesh’s biggest trading partner—and arms make up a good chunk of that trade. Two Chinese submarines arrived on credit in March. Bangladesh is the third-biggest buyer of Chinese arms, after two other neighbours of India, Pakistan and Myanmar.
India is responding with a charm offensive of its own. When Bangladesh’s prime minister, Sheikh Hasina, made a four-day state visit to Delhi that concluded on April 10th, her Indian counterpart, Narendra Modi, made sure she did not go back empty-handed. He offered $5bn in loans, including $1bn for a Russian-backed nuclear plant, Bangladesh’s first; and $500m to buy Indian arms. The two countries signed a defence agreement committing them to deeper...Continue reading
from Asia http://ift.tt/2nN1YZo
EmoticonEmoticon