China and Bangladesh celebrated 50 years of diplomatic relations. On October 4, leaders from both nations, including President Xi Jinping and President Mohammed Shahabuddin, exchanged congratulatory messages. They highlighted a partnership built on mutual respect and "win-win cooperation."

An academic way to view this partnership is through the theory of liberalism. In international relations, liberalism is seen as a progressive idea. It argues that countries are not always in conflict; instead, they can cooperate for mutual benefit. Liberalism states that economic ties and international agreements build trust. This cooperation leads to shared growth and lasting peace. It is a "win-win" situation, not a "zero-sum" game where one side must lose for the other to win.

The foundation of the relationship is based on these liberal principles. Both nations adhere to the Five Principles of Peaceful Coexistence. These include mutual respect for sovereignty and non-interference in internal affairs. This diplomatic groundwork allows for a pragmatic partnership. It is not based on shared political ideology. It is based on shared interests in development and stability. This creates a positive-sum game, where both sides can win.

The engine of this "win-win" relationship is economic interdependence. Liberal theory states that when countries trade heavily, the cost of conflict becomes too high. China is Bangladesh's largest trading partner. In the 2023-2024 fiscal year, bilateral trade was significant, even if imbalanced. Bangladesh imported goods worth $16.64 billion from China. This massive trade volume links the two economies closely. Bangladesh depends on China for machinery, chemicals, and textiles for its vital ready-made garment (RMG) industry. China sees Bangladesh as a major and growing market. This deep economic tie creates a powerful incentive for peace.

Large Trade Imbalance

The large trade imbalance is a serious challenge. Bangladesh’s exports to China in fiscal year 2023-24 were only about $715 million. However, the liberal framework shows a clear path to address it. Instead of conflict, the two nations use cooperation and institutions. In recent years, China has expanded its duty-free (DF) access program. First, it offered DF access to 97% of Bangladeshi products. This was later increased to 98%, and recently, China pledged 100% duty-free access for Least Developed Countries (LDCs), a benefit Bangladesh will retain until 2028. This policy is an attempt to resolve the trade imbalance through cooperation, not coercion. The goal is to grow the economic pie for everyone.

Top Development Partner

The most visible proof of this liberal partnership is infrastructure. Bangladesh has ambitious goals. It will graduate from LDC status in 2026. It aims to become a developed "Smart Bangladesh" by 2041. These goals require massive investment in infrastructure. Liberalism sees this as an area for positive-sum cooperation. 

China has become Bangladesh’s top development partner, providing the capital and engineering expertise. It provided funding and construction for the $4.63 billion Padma Bridge Rail Link. This project connects the underdeveloped south to the capital. China also built the $2.48 billion Payra Thermal Power Plant, a critical piece of energy infrastructure. It constructed the Bangabandhu Tunnel under the Karnaphuli River in Chittagong, the first of its kind in South Asia. These projects are development assets. They are the essential tools Bangladesh needs to industrialize, create jobs, and raise its standard of living. This is not dominance. This is joint development.

Finally, liberalism emphasizes the role of international institutions. These institutions build trust and manage cooperation. The most important framework here is the Belt and Road Initiative (BRI). Bangladesh joined the BRI in 2016. This decision locked in billions of dollars in infrastructure investment. President Xi Jinping’s 2016 visit alone pledged over $24 billion for various projects. The BRI acts as an institutional framework that allows for long-term, large-scale cooperation. Beyond the BRI, China is a top source of Foreign Direct Investment (FDI) in Bangladesh, particularly in the power and textile sectors.

As China and Bangladesh look ahead, their relationship offers a vital lesson for South Asia. It shows that a partnership does not have to be a zero-sum game.  Instead, it can be a pragmatic, "win-win" partnership focused on economic growth. By building on a foundation of mutual respect, deep economic interdependence, and institutional cooperation, China and Bangladesh have forged a bond that is strong and beneficial. This is the theory of liberalism in practice.

(The author is a research scholar in the Department of International Relations, Jahangirnagar University, Dhaka. Views expressed are personal. He can be reached at md.saiful.stu2018@juniv.edu.)