Lankan Ranger
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Chinas growing presence in South Asia
China has been taking an increasingly active interest in South Asian countries over the past few years, seeking to rally friendship and support in order to surpass Indias dominance in the region.
China has been the fastest growing economy in the region for the last decade in terms of growth, world trade share, price competitiveness in product manufacturing and winning oil deals.
SAARCs demand for Chinas Observer status reveals Chinas increasing clout in the region, as well as the growing economic and political relations intended to dilute Indias dominance in South Asia.
China has been improving its trade and investment relations with South Asian countries through treaties and bilateral cooperation.
China and Pakistan signed a Free Trade Agreement (FTA) in 2006, as well as numerous other agreements and Memorandums of Understanding (MOUs), including Bilateral Investment Treaties (BIT) to increase mutual trade and investment. Pakistan provides China with cheap raw materials and the use of Pakistani ports in return for access to Chinese markets through preferential treatment under the FTA.
Pakistan could very well become a hub in the region, which may lead to considerable future transit revenues and help Beijing build the trade and energy corridor through Pakistan.
Although China does not have an FTA with Bangladesh, the two countries granted each other Most Favoured Nation (MFN) treatment in 1984. China provides duty-free access to a list of Bangladeshi products under the Asia-Pacific Trade Agreement, and Bangladesh has offered oil exploration rights to China at Barakpuria. China has also gained naval access to the Bangladeshi Chittagong port, which will bring China closer to Myanmar oil fields.
China has also been increasing its ties with Sri Lanka. Chinas motives include oil, ports and Indian Ocean access. China and Sri Lanka signed a Joint Communiqué in 2005 to further bilateral relations and provide each other MFN treatment.
China has offered Sri Lanka funds in the form of Aid and Preferential Credit for various developmental purposes. In turn, Colombo has allocated a block in the Mannar basin for Chinese oil exploration. On the southern coast of Hambantota, China has begun developing port and bunker facilities, as well as an oil tank farm.
China has exercised caution in developing these friendly ties with the coastal countries of South Asia. Chinas increasing need of energy sources and access the international markets makes the Indian Ocean and its ports very attractive.
China?s growing presence in India?s neighbourhood | East Asia Forum
China has been taking an increasingly active interest in South Asian countries over the past few years, seeking to rally friendship and support in order to surpass Indias dominance in the region.
China has been the fastest growing economy in the region for the last decade in terms of growth, world trade share, price competitiveness in product manufacturing and winning oil deals.
SAARCs demand for Chinas Observer status reveals Chinas increasing clout in the region, as well as the growing economic and political relations intended to dilute Indias dominance in South Asia.
China has been improving its trade and investment relations with South Asian countries through treaties and bilateral cooperation.
China and Pakistan signed a Free Trade Agreement (FTA) in 2006, as well as numerous other agreements and Memorandums of Understanding (MOUs), including Bilateral Investment Treaties (BIT) to increase mutual trade and investment. Pakistan provides China with cheap raw materials and the use of Pakistani ports in return for access to Chinese markets through preferential treatment under the FTA.
Pakistan could very well become a hub in the region, which may lead to considerable future transit revenues and help Beijing build the trade and energy corridor through Pakistan.
Although China does not have an FTA with Bangladesh, the two countries granted each other Most Favoured Nation (MFN) treatment in 1984. China provides duty-free access to a list of Bangladeshi products under the Asia-Pacific Trade Agreement, and Bangladesh has offered oil exploration rights to China at Barakpuria. China has also gained naval access to the Bangladeshi Chittagong port, which will bring China closer to Myanmar oil fields.
China has also been increasing its ties with Sri Lanka. Chinas motives include oil, ports and Indian Ocean access. China and Sri Lanka signed a Joint Communiqué in 2005 to further bilateral relations and provide each other MFN treatment.
China has offered Sri Lanka funds in the form of Aid and Preferential Credit for various developmental purposes. In turn, Colombo has allocated a block in the Mannar basin for Chinese oil exploration. On the southern coast of Hambantota, China has begun developing port and bunker facilities, as well as an oil tank farm.
China has exercised caution in developing these friendly ties with the coastal countries of South Asia. Chinas increasing need of energy sources and access the international markets makes the Indian Ocean and its ports very attractive.
China?s growing presence in India?s neighbourhood | East Asia Forum
