Bangladesh–China economic ties poised for significant expansion

Bangladesh and China are set to enter a new phase of accelerated trade and investment cooperation, with both countries preparing to deepen industrial integration and diversify economic engagement in response to shifting global dynamics.

In an interview with BSS, Han Kun, President of the Chinese Enterprises Association in Bangladesh (CEAB), said the trajectory of future bilateral relations will depend heavily on improved policy stability, streamlined investment procedures and meaningful efforts to cut bureaucratic delays. He noted that China now views Bangladesh as an increasingly significant economic partner, with cooperation extending well beyond traditional trade and infrastructure into emerging sectors such as technology, innovation and cultural industries.

Han said the volume of trade between the two countries is expected to rise steadily while becoming more sophisticated. Bangladesh currently depends on China for a large share of machinery, industrial inputs and raw materials. But he predicted that as Bangladesh strengthens its manufacturing base, exports to China will gradually include more semi-finished and finished goods — a shift he described as a marker of industrial maturity.

Upgraded infrastructure and improved logistical connectivity, he added, will play a central role in facilitating this transition. After years of collaboration on major bridges, power plants and highways, the two partners are increasingly moving into advanced projects such as expressways, mass rapid transit, smart water systems and digital infrastructure. “Co-investment in modern infrastructure will elevate Bangladesh’s social and economic progress to a new level,” Han said.

He also highlighted opportunities in China’s rapidly expanding cultural and creative economy — including films, digital entertainment and content industries — noting that cultural exchange now directly influences economic cooperation. Stronger people-to-people engagement, he said, will widen the scope of bilateral business.

Han urged both governments to accelerate negotiations on a long-discussed Free Trade Agreement, calling it potentially transformative for Bangladesh’s competitiveness. He argued that an FTA would not only improve Bangladesh’s access to Chinese goods but also enable Bangladesh to position itself as a global export hub by leveraging China’s strength in technology, equipment and intermediate materials.

The CEAB President welcomed China’s recent approval of Bangladeshi mango exports and expressed hope that jackfruit and other agricultural products would soon enter the Chinese market. He encouraged Bangladeshi exporters to explore new niches through innovation and market research.

Describing Bangladeshi entrepreneurs as energetic and highly creative—often comparable to business clusters in dynamic Chinese provinces—Han said their success will depend on stronger regulatory support and platforms that allow ideas to grow into viable enterprises.

Han predicted substantial growth in bilateral investment and trade over the coming decade, driven by cooperation in manufacturing, high-tech sectors, digital services and green development. “The next decade will deliver a more optimized and mutually beneficial partnership,” he said.

Despite strong engagement, Bangladesh’s trade deficit with China continues to widen. According to central bank data from FY 2019–20 to September of FY 2025–26, Bangladesh imported between USD 11 billion and USD 20 billion worth of goods annually from China, while exports remained stagnant at USD 500–600 million — even with duty-free access to the Chinese market.