Chinese President Xi Jinping landed in Dhaka on Friday on his first visit by a head of state from his country to Bangladesh in 30 years.
Chinese state-media described the visit as a diplomatic "milestone" of "historic significance," as the two countries will sign at least 21 agreements amounting to nearly USD 40 billion investment in Bangladesh.
Another media report said both sides will also sign off on nearly $24 billion worth of loans to the country - Bangladesh's biggest foreign credit line to date.
The deal comes after of a series of investments made by Chinese companies in Bangladesh in the past several months - including a USD 1.1 billion deal signed this week by Chinese cable manufacturer Jiangsu Etern Co. to strengthen the South Asian country's power grid, and a USD 3.1 billion deal by China Railway Group to build nearly 170 km of railroads connecting the capital Dhaka to southwestern cities.
Bangladesh has traditionally been one of India's strongest allies in the region, but experts say that Delhi will not be able to match Beijing's largesse.
However, when asked by local media, Bangladesh's Foreign Minister said he did not think the visit would significantly impact Bangladesh-India relations.
Xi is on a diplomatic tour that began in Cambodia and will culminate in a visit to India, during which he will attend the 8th BRICS Summit in Goa.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)