China keen to invest heavily in Bangladesh’s jute-based manufacturing

Chinese investors have expressed strong interest in making major investments in Bangladesh’s green technology, jute, textile and pharmaceutical industries. The interest comes as part of the manufacturing transformation plan announced by chief adviser Professor Muhammad Yunus.

On November 27, Thursday, Yang Dongning, vice-president of the Export-Import Bank of China (Exim Bank), conveyed this interest during a meeting with the chief adviser at the state guesthouse Jamuna. He was accompanied by Dr Ma Jun, president of China’s state-owned Institute of Finance and Sustainability.

Yang Dongning said that alongside China’s longstanding infrastructure investments in Bangladesh, they are now focusing on manufacturing. This includes rooftop solar panels and major projects to produce energy, bio-fertiliser and plastic alternatives using Bangladesh’s ‘golden fibre’—jute. He added that Exim Bank is also interested in financing these direct manufacturing investments.

Dr Ma Jun said the traditional jute industry is of particular interest to Chinese investors, who want to work jointly with local entrepreneurs. Chinese companies are prepared to use up to one million tonnes of jute annually to produce green energy, fertilisers and plastic alternatives. He added that there is substantial scope for jute-based joint ventures with Chinese financing.

Welcoming China’s interest, the chief adviser said Chinese investors could help transform Bangladesh into a hub for manufacturing products for export—including to China and developed economies. He also identified pharmaceuticals and healthcare as promising sectors for Chinese investment.

Professor Yunus added that as the world’s largest producer of solar energy, China can play a major role in supporting Bangladesh’s green-energy ambitions, including rooftop solar. He encouraged Chinese companies to relocate manufacturing plants to Bangladesh, noting that the country’s large young workforce and closed state-owned jute mills offer significant joint-venture opportunities.

He said, “This is a very important development. We welcome it. We want these initiatives to move quickly.”

Yang Dongning said China is also considering investment opportunities in the AI and e-commerce sectors, where China already holds global leadership. In response, the chief adviser invited Chinese firms to establish factories in Bangladesh’s south-eastern region.

He said the region’s proximity to the country’s largest seaport and key markets in Myanmar, Thailand and Southeast Asia offers major strategic advantages.

Professor Yunus added that the region’s access to the sea holds immense potential. If Chinese manufacturing plants are relocated there, the products could be exported to developed countries as well as China. Establishing railway connectivity with southern China, he said, would boost regional integration and make exports from relocated factories even easier.