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China offers to invest $350m

Star Report
China has offered to invest about $350 million in Bangladesh's various sectors for product diversification, value addition as well as boosting exports for the mutual benefits of the two countries.
Visiting Chinese Commerce Minister Gao Huchen said this at a meeting with Prime Minister Sheikh Hasina at Gono Bhaban yesterday.
After the meeting, PM's Press Secretary Ihsanul Karim told reporters that the
Chinese minister had termed Bangladesh a development partner of his country and urged the prime minister to form a committee to coordinate with the Chinese side over the investment it wants to make in Bangladesh, reports UNB.
Gao Huchen said Bangladesh produces quality jute products, the export of which to China has increased by 10 percent just in the first half of this year.
A letter of exchange has been signed between Bangladesh and China for building
Bangladesh-China Friendship Exhibition Centre at Purbachal on the outskirts of capital, the minister mentioned.
He also said Bangladesh was marching ahead under Sheikh Hasina's visionary and dynamic leadership.
Regarding Chinese investment, particularly in Bangladesh’s garment sector, Hasina said her government had allocated land in Chittagong's Anwara upazila for Chinese Economic and Industrial Zone.
The government is setting up 22 special economic zones to facilitate such investment, the PM said.
Bangladesh and China have enormous potentials in joint venture industries, she commented.
The prime minister said Bangladesh would invite the Chinese president and the premier to the celebrations marking 40 years of diplomatic relations between the two countries this year. The event would take the ties to a new height she hoped.
CHINA MAY GIVE MORE LOANS
China is interested in providing soft loans for various sectors including railways, jute and bridges under a new financing programme, said Finance Minister AMA Muhith.
After Prime Minister Sheikh Hasina's visit to China last year, Dhaka had sent a list of several projects and Beijing has accepted those for financ-
ing, Muhith told the press after a meeting with the visiting Chinese commerce minister at the secretariat.
A key reason for Gao Huchen's Bangladesh visit is to review the progress in implementing the commitments already made by China, he said.
This also is part of the preparation for a prospective visit of the Chinese president or the prime minister to mark the 40th anniversary of diplomatic ties between the two countries, said Muhith.
"Bangladesh's cooperation with China has increased and it will expand further in future."
As for other development projects, the finance minister said China has expressed interests in setting up an industrial park which will create 2 lakh jobs. China will fund the construction of the Karnaphuli tunnel.
China has offered $15 to $20 billion soft loan to Bangladesh to help expand railway network across the country, according to a high official of the Economic Relations Division. The railways ministry has already identified eight projects involving $ 10.79 billion.
Muhith told reporters the Chinese commerce minister informed him that China was considering to lower the interest rate on soft loans.
The interest rate on Chinese soft loan at present is 2 percent. Bangladesh is trying to bring it down to between 1 and 1.5 percent.