China commits $800mn investment in Bangladesh's garment sector

More than 20 Chinese companies have pledged a combined investment of $800 million in the country's ready-made garment (RMG) and textile sector.

The announcement was made by Chinese Ambassador to Bangladesh, Yao Wen, during a meeting with Dhaka Chamber of Commerce and Industry (DCCI) President Taskin Ahmed at the Chinese Embassy in Dhaka on Monday ( September 8).

Yao stated that the proposed investment will help strengthen Bangladesh’s RMG and textile industries—key pillars of the country’s export economy—and could substantially increase export earnings if implemented effectively.

He also highlighted Chinese interest in investing in Bangladesh’s growing electric vehicle (EV) sector. However, he noted that high tariffs and the absence of clear policy support are major barriers.

The Chinese envoy urged the Bangladesh government to update its regulatory framework and called on the DCCI to play an active role in facilitating this process.

While acknowledging the importance of the RMG sector, which currently accounts for 85% of Bangladesh’s total exports, the Chinese envoy cautioned against over-reliance on a single industry. He emphasized the need for export diversification and encouraged Bangladesh to develop high-potential sectors to ensure long-term sustainability.

DCCI President Taskin Ahmed, in response, stressed the importance of deepening Bangladesh-China economic cooperation, particularly as the country prepares to graduate from Least Developed Country (LDC) status.

He revealed that bilateral trade between the two countries reached $17.35 billion in the fiscal year 2024, with imports from China amounting to $16.64 billion, while exports stood at just $715.38 million.

Taskin Ahmed further called for increased Chinese investment and technical collaboration across a range of sectors including infrastructure, energy, education, agriculture, food processing, ICT, renewable energy, automotive, light engineering, medical equipment, API production, semiconductors, and shipbuilding.