Strategies that Chinese companies may adopt in Bangladesh’s political endeavour

The recent political upheaval in Bangladesh, resulting in a change of government through a student-public movement, has undoubtedly disrupted the established relationships and networks that Chinese companies had built over the last 15 years. While this shift presents challenges, it also offers opportunities for Chinese businesses to reassess their strategies and align with the new administration’s goals. Here are some constructive steps Chinese companies and the Chinese embassy can take to overcome these challenges:

Rebuild and Strengthen Government Relationships:
If a Chinese construction company had previously been involved in large-scale infrastructure projects, such as the Padma Bridge project, it’s crucial to approach the new government with a fresh perspective.

Engage Early and Often: Start by initiating discussions with key members of the new government. For instance, the embassy could arrange a high-level meeting between Chinese business leaders and the new Bangladeshi ministers to discuss ongoing projects and explore new areas of collaboration very particularly.
Tailor Proposals to New Priorities: Align future project proposals with the new government’s focus. If the new administration prioritizes renewable energy, Chinese companies like those involved in the Payra Power Plant could propose solar or wind energy projects that match the current demand of Bangladesh.

Reassess and Realign Investment Strategies:
For companies that invested in the Dhaka-Chattogram Railway Line project, Dhaka–Sylhet Corridor Road Investment Project, reassessing the project’s viability under the new administration could involve renegotiating terms or seeking additional partners.

Conduct a Strategic Review: Assess the current political and economic environment to determine the viability of ongoing projects. This might involve working with local consultants or think tanks to gain insights into the new government’s economic plans.

Explore New Sectors: Consider investing in sectors that align with the new government's vision. If the administration is keen on digital transformation, companies like Huawei, which has been involved in building Bangladesh’s telecommunications infrastructure, could expand into smart city projects or digital governance initiatives.

Enhance Corporate Social Responsibility (CSR) Efforts:
The Chinese Embassy is committed to donate 20,000 dollars to Chief Adviser's Relief and Welfare Fund, and provide food and other relief supplies worth Tk 60 lakh to people in Feni and other affected areas.

Focus on Local Impact: Invest in initiatives that benefit the local population. For example, Chinese companies could sponsor educational scholarships for Bangladeshi country side students or contribute to healthcare projects, which would help build goodwill and trust with the local communities and the government.

Community Engagement Programs: Launch programs that directly address the needs of local communities. For example, if a company is involved in water infrastructure projects, they could also support local clean water initiatives for the right beneficiaries, which would be seen as a positive contribution to public welfare.

Adapt to New Regulatory and Business Environments:
Companies involved in the G2G initiative for setting up special economic zones should ensure their operations are fully compliant with any new regulations introduced by the current government. Compliance and Transparency: Ensure all business practices adhere to the new government’s regulations. Companies should consider setting up compliance teams that can work closely with local legal experts to navigate the evolving regulatory landscape. Participate in Policy Formulation: Engage in dialogue with the government to help shape policies. For instance, Chinese companies could offer their expertise in infrastructure development to influence regulations that encourage foreign investment in this sector.

Foster Regional and Multilateral Partnerships:
For companies involved in the Belt and Road Initiative (BRI) projects in Bangladesh, it may be beneficial to involve regional partners or international development banks to diversify risk. Collaborate with International Institutions: Work with organizations like the World Bank or the Asian Development Bank on projects in Bangladesh. This not only provides additional funding but also brings in a layer of security and international oversight for public procurement, which can be reassuring to the new government for rearranging tenders for existing and new projects. Highlight Success Stories: Showcase success stories where Chinese investments have led to significant positive outcomes for Bangladesh. For instance, if a project helped reduce transportation costs or improved energy efficiency, these achievements should be widely communicated to build trust

Communicate Long-Term Commitment and Vision:
A company like CRRC Corporation, involved in supplying trains for the Dhaka Metro, could publicly reaffirm its commitment to completing the project and contributing to Bangladesh’s long-term development in communication sector.

Public Statements of Commitment: Issue public statements and engage with media to communicate the long-term vision of Chinese investments in Bangladesh. Highlight the benefits these projects bring, such as job creation, technology transfer, and infrastructure development.

Plan for Sustainable Growth: Develop a phased investment strategy that adapts to changing conditions in Bangladesh. For instance, companies could propose new phases of existing projects that align with the new government’s priorities, ensuring continuity and sustained growth.

Focus on Feasible, Demand-Driven Projects:
In this new political environment, it is crucial for Chinese companies to concentrate on projects that are truly necessary and beneficial for the people of Bangladesh, rather than those driven by political agendas. Moving forward, all new projects should be carefully selected based on their feasibility and demand. For instance, instead of large, politically motivated infrastructure projects, companies could invest in healthcare facilities, clean water access, or renewable energy solutions that directly improve the quality of life for ordinary citizens. The focus must be on quality over quantity, ensuring that the pricing of these projects is accurate, transparent, and fair. Projects should be designed with the primary goal of serving the people of Bangladesh in the best possible way, with no room for propaganda, corruption, or unnecessary involvement. By adhering to these principles, Chinese companies can build a reputation for integrity and reliability, which will foster long-term trust and collaboration with the new government and the Bangladeshi public.

By taking these constructive steps, Chinese companies and the Chinese embassy can not only mitigate the impact of the recent political changes in Bangladesh but also position themselves as valuable partners in the country’s future development. This approach will help maintain and even strengthen the relationship between China and Bangladesh, ensuring that Chinese investments continue to thrive in a more transparent and open market.

Md. Fazlay Elahi Tushar: FDI Consultant And Senior Business Manager, China Shandong International Economic & Technical Cooperation Group Ltd.