Bangladesh to fall into 'Chinese debt trap' is a misperception: Momen

Bangladesh by no means would fall into the so-called 'Chinese debt trap' as the country's debt mostly came from international agencies and institutions and the lion's share of it came from Japan, said Foreign Minister AK Abdul Momen.

"China is a friendly country and a development partner of ours, but we have other close allies. There is a misperception among many people that Bangladesh could fall into the Chinese debt trap, which is never going to happen," he said in response to a question from British journalist Richard Quest who works for CNN.

The idea of the 'Chinese debt trap' was first floated by an Indian academic, saying how the Chinese government uses the debt burden of smaller countries for its own geopolitical gains. However, other political analysts dismissed the notion as a fallacy.

"The loan assistance that we have received came mostly from international agencies and institutions. The only country from which we borrowed the maximum amount is Japan, a friendly country," the minister said.

Foreign Minister AK Abdul Momen and Commerce minister Tipu Munshi faced the interview with Richard at a session titled "Future Roadmap of Bangladesh" at the three-day Bangladesh Business Summit 2023 that kicked off on Saturday.

"Bangladesh is in a very good position in terms of investment and business situation but we are a little worried about the Russia-Ukraine war," said Tipu Munshi while replying to another question from Richard.

"Bangladesh suffered many setbacks due to the war and we are trying to boost exports and volume of production despite these issues," he said, adding: "I am very optimistic that Bangladesh will not be in any trouble."

Addressing a question about the non-alignment position in the war, the foreign minister said, "Bangladesh has been following the non-alignment policy regarding the Russia-Ukraine war.

On the basis of our national interest, principles and values, we have supported some of the resolutions related to humanitarian help and ending the war. Otherwise, we remain abstained."

When asked what Bangladesh's position would be if Russia prevails and Ukraine stops receiving support, the foreign minister said, "We want peace. We do not want war because work affects individuals, poor people, families, women and children. So, we want a negotiated settlement of the issues."

In response to another question from Richard about how can Bangladesh compete with China when the latter currently has the most technologically advanced textile machinery in the world, the commerce minister said, "We are focusing on branding our products for competitiveness."

For instance, he said, in the ready-made garments (RMG) sector the number of products is less but the value of these products has gone up, which means the value addition is there.

"So, we are trying to boost branding, making better quality products and expanding destinations," Tipu Munshi added.

Responding to a question on whether the government should think of spending more on education when college dropouts are rising in number, the commerce minister said, "We have to go for vocational training-based education."

About the upcoming general election, Foreign Minister Momen said, "Over the last 14 years, there have been thousands of elections. Besides, we have developed all the institutions that are necessary for a free, fair and credible election. For example, there have been no fake voters in our country."

"We have introduced digital photo identification for voters. We have established all the institutions like transparent ballot boxes and an independent election commission with full authority. Therefore, we believe the upcoming election would be free, fair and credible," Momen said.

"Earlier, we had a goal for digital Bangladesh. Now we set our goal for smart Bangladesh. We are giving hope to our people," the foreign minister added.

Journalist Richard asked another question, "There is a perception among people that the government here has turned authoritarian…. that the government here has turned anti-democratic. Now, whether or not you think that is true, the perception is there. What do you have to say about that?"

In response, the foreign minister said, "Whatever we do, we do to serve our people. So, this perception that you may often see on some media platforms may not be correct. If there is a mistake or a weakness, we try to rectify it."