China having a GDP of 7043$ bl having external debt of $363 bl, a 5.6% of GDP where as USA climbs up to 88%! Check out the import-export ratio as well [Link 1] which depicts a predominant China over US. In recent G20 summit US literally begged to China for help in the name of participation in global economical crisis but China in spite of reduced voting rights at IMF are regardless of disappointing US expectations . So, a stubborn NO to US getting allied with China to dominate Asia. Rather considering the situation of Bangladesh economy which has 15:1 trade deficit with India should divert it's import concentration to China. One of the attempts in the diversification was Bangladesh's look east policy which shaped our foreign policy towards 'Other' East-Asian countries.

Bangladesh's look east policy
The present BNP led four-party alliance government in Bangladesh has decided to open a new dimension in foreign policy. The new policy is called the look east policy. The policy includes strong economic ties with the eastern countries like Myanmar, China, Thailand, Vietnam, Laos, Indonesia etc. One of the background reasons to take this policy is to reduce dependency on India. The increasing trade deficit and India's unwillingness to take sufficient steps to reduce the trade gap has pushed Bangladesh to take a policy like this. Countries like China, Thailand, Vietnam have a proven potentiality and they are applying more soft and wide trade policies while trading with Bangladesh compared to India. However, Bangladesh is not ignoring India while implementing look east policy. Bangladesh's foreign minister M.Morshed Khan said "It will definitely not harm Indo-Bangladesh relations". Moreover, initiatives like SAFTA (South Asian Free Trade Area) and BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, Thailand Economic Co-operation) can lead Bangladesh and India into closer economic ties."[ref]


Now let's look deeper in Bangladesh:

Budget: revenues: $7.01 billion expenditures: $9.464 billion (2007 est.), 2.3 billion eco-aid.
Exports - partners: US 23%, Germany 13%, UK 9.1%, France 5.5%, Belgium 4% (2007)
Imports - partners: India 16%,China 15%, Kuwait 8.3%, Singapore 6.2%, Hong Kong 4.2% (2007)

India - Bangladesh trade deficit has been always on top talks in bilateral trade forums[Link 3]. Yet India thinks it's is the best time to boost the relationship[Link4] with Bangladesh through north-east part of India.[Link 5] and there the transit issue comes. M.S. Shekil Chowdhury, senior DCCI vice-president said in a meeting with the leaders of the Confederation of Indian Industry (CII) about increasing the export-import business between the northeast region and Bangladesh by three times from the current volume within 2010[Link 6][Link 7]. For India it's far bigger picture because their vision is not just to grasp Bangladesh's economy but also use Bangladesh as key point to further North-east asia[Link 8].16% of our total import from India in 2007 of which 32% of Primary agricultural, fish, and livestock products. Our total Imports on 2008 $16,670,000,000 increased by 21% from previous year. But in July 2007-March 2008 period, imports from India totalled $2.45 billion, surpassing $2.29 billion from China. Bangladesh's rice import bill from India soared to $730 million in the July-March, up from only $170 million in the whole 2006/07 financial year. Imports from India in 96/97 fiscal year was 7845 lakh. Taka and in 07/08 it was 23273 lakh Taka. This significant amount of increased imports from India was majoring in Agricultural products such as rise, onion grains etc[Link 9]. See how each sector has increased in imports from India within just one fiscal year[Link 10]

Now, the question in all of your minds would be, Why Bangladesh is importing at such large scale from India? One of the reason would be the gradual increase in demand in Bangladesh. But that's pretty sane isn't it? Although we have a very decent growth rate of population, our production is simultaneously decreasing in all of the sectors other than Textile. I want to quote again a comment CIA made on Bangladesh, "The economy has grown 5-6% per year since 1996 despite inefficient state-owned enterprises, delays in exploiting natural gas resources, insufficient power supplies, and slow implementation of economic reforms. Bangladesh remains a poor, overpopulated, and inefficiently-governed nation. [[Although more than half of GDP is generated through the service sector, nearly two-thirds of Bangladeshis are employed in the agriculture sector, with rice as the single-most-important product.]] Garment exports and remittances from Bangladeshis working overseas, mainly in the Middle East and East Asia, fuel economic growth. In 2008 Bangladesh pursued a monetary policy aimed at maintaining high employment, but created higher inflation in the process." Notice the displacement of investment CIA mentioned above pointing at the labor force invested in Agricultural sector which has been dying since 91 and right in that hole India didn't make any mistake to push their trade in. Several factors such as Farkka Dam[link 11] are involved which eventually pushed Bangladesh into such scenario by demolishing agricultural production in northern sector of Bangladesh. That is how the production is day by day decreasing at warning level and followed by Tipaimukhi dam, Transit and CTG port to add economical oppression on Bangladesh.

To be continued...

For more reading : Click This Link

References:
Link 1: Click This Link
Link 2: Click This Link
Link 3: Click This Link
Link 4: TIme to boost India-Bangladesh trade relationship: Click This Link
Link 5: Northeast India will become heart of trade with Southeast Asia (Lead): Click This Link
Link 6: Transit Issue: Click This Link
Link7: Trade with Northeast India: Click This Link
Link 8: India's proposal to use CTG port: Click This Link
Link9: Imports from territories: Click This Link
Link10: Click This Link
Click This Link
Link11: Click This Link
Link 12: Urges for Tipaimukhi dam: Click This Link
[ref]https://www.cia.gov/library/publications/the-world-factbook/geos/bg.html