New horizon for trade expansion likely to open

Honorable Chief Advisor Dr. Muhammad Yunus is set to visit China on the eve of 26th March 2025 where Chinese President Xi Jinping will send a special chartered flight for the Bangladeshi counterpart. This gesture of the Chinese president is a demonstration of his unwavering support for the Interim Government of Bangladesh culminating in deeper collaboration as enshrined in the amicable relationship between the two countries based on people-people diplomacy. China is a political partner and at the same time an Industrial and Business partner for Bangladesh. Bangladesh can explore a number of new opportunities for increasing bilateral trade and at the same time get support from China to be competitive in the Post-LDC stage.

China is the largest trading partners of Bangladesh of about 150 countries, with imports of a significant amount of raw materials from China, this share has been increased from J10.2% of 2002 to about 26.4% in the current year. Imported raw materials from China are being used in our export and other industries. Not only raw materials we also import technology, equipment from China. It is because of proximity and price competitiveness, the country has emerged as one of the central trading partners for Bangladesh.
China is one of the biggest countries having huge manufacturing base and export of CJhina was $ 3.4 Tr in 2023, comparing this Bangladesh is a very small country, even though 2nd largest apparel exporters, however, differences of export of apparel of China anJd Bangladesh is huge. China's apparel export is USD165 billion, while Bangladesh's export is only close to USD 40 billion in the recent year.

China is an expert country of having 22 FTAs in total involving 29 countries and regional blocs (including ASEAN, comprising 10 nations). A further 10 FTAs are currently under negotiation, while 8 more are under consideration. Bangladesh also of course need to think it differently at the stage of post LDC regime where tariff and Para tariff will face a number of challenges when FTA , RTA and EPA will be the options to be competitive.

China was requesting for formalization of an formally FTA with Bangladesh since long, but it has not been shaped up yet. The Memorandum of Understanding (MoU) was signed in 2016 between the two countries, a FTA feasibility study has also been undertaken. The visit can expedite the process of signing a FTA between these two countries.

Bangladesh can learn a lot from China. Bangladesh is an Investment Hungry country and China is a tested friend of Bangladesh, more investment in the Hi-Tech Parks, Renewable Energy project could be explored. At the moment some of the Hi-tech parks are ready for having investment while most of equipment for renewable energy are imported from China. As China is at its stage of upgrading its industries relocation of their industries to Bangladesh could be an ideal opportunity for Bangladesh.

Bangladesh has to spend a huge amount of money for medical tourism. Mostly the class who have affordability wants to take better treatment from abroad, allowing China to build world class hospital in Bangladesh could help Bangladesh to save a huge amount of foreign currency, time and ensure health security. Increasing the medical collaboration between the two countries could be a point to be discussed.

China has extended a duty free and quota free access to Bangladesh and it has been extended further There is possibility of the following products to be exported in China from Bangladesh but so far Bangladesh could not explore so much the opportunity. From an analysis of the DFQF list it is seen that Bangladesh can explore the potentials of exporting Cotton Waste, other vegetable textile fibers; paper yarn and woven fabrics of paper yarn, products of apparel and clothing accessories, knitted or crocheted,products of apparel and clothing accessories, not knitted or crocheted, other textile products; sets; worn clothing and worn textile products; rags, footwear, gaiters and the like; parts of such products, live animals, products of animal origin not elsewhere specified or included, raw hides and skins (other than fur skins) and leather, iron and steel, articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worn gut), copper and articles thereof and aluminum and articles thereof.

Although China decided to grant duty-free and quota-free (DFQF) access to 98 percent of Bangladeshi products with the inclusion of 674 new products. But Within the Top 20 Exported Product in the year of (2020-21), the products were not listed in the list of Duty free Quota free but Bangladesh has some capability to export. These are Men'S Or Boys' Bib & Brace Trousers, Breeches, Shorts, Of Cotton, Men'S Or Boys' Anoraks, Wind Jackets/Cheaters, Etc, Of Man-Made Fibres and Footwear With Rubber... Soles And Leather Uppers, Covering The Ankle, Nes.

Bangladesh also can Getting more time to pay the instalments of the Chinese Loans, reducing the interest rates on Chinese loans. Allowing China to continue to invest on infrastructure in Bangladesh.

More private to private (P2P) collaborations and networking with the leading chambers could open some more understanding about the need of Chinese products and extend research and Development activities to improve bilateral trade and business relations.

Ferdous Ara Begum: Economist and CEO, Business Initiative Leading Development (BUILD