Bangladesh plans $2.2b purchase of 20 Chinese J-10 fighter jets

[Michael]

I can’t see any reason why China shouldn’t sell the J-10CE to Bangladesh, right? For China, first of all, this deal can expand the export of the J-10CE. Secondly, it can contain India on its eastern flank. This is an excellent option. I don’t think you guys need to split hairs over this. This deal will definitely go through.
China and Bangladesh are traditional neighbors and friends. Moreover, Bangladesh, like China, has reservations about India. So the enemy of my enemy is my friend.

The core of the issue does not lie in the question of "to sell or not to sell," but rather in the specific terms and conditions of the transaction.

Bangladesh’s initial proposal was to replicate the model used by the Pakistan Air Force (PAF) for the procurement of J-10CE fighter jets. However, it is clear that Bangladesh does not enjoy the same level of creditworthiness with China as Pakistan does.

Consequently, Bangladesh’s latest proposal consists of a "20% down payment followed by six installment payments." I believe that CATIC—or the relevant Chinese authorities—is currently evaluating this proposal. At least for now, the two sides have not yet signed a contract. The matter remains unsettled. This depends on the assessment of Bangladesh by professional financial institutions from the Chinese side.

If Bangladesh were to opt for a direct, one-time cash payment rather than an installment plan, there would be no issue whatsoever. In fact, if they wished to purchase the FC-31/J-35 fighter jet, the Shenyang Aircraft Corporation (SAC) could even prioritize its production and delivery for them.

However, if they choose an installment-based payment model, their repayment capacity must be taken into account.

Consider the process of purchasing real estate: one can choose to pay in full upfront or via installments. A full, one-time payment makes the procedure quick and straightforward. Opting for installments, by contrast, inevitably entails a complex series of requirements from financial institutions—and approval is not guaranteed. Yet, one certainly cannot claim that the developer is unwilling to sell the property.