Bangladesh\`s exports to China would exceed $25b by 2030

Bangladesh's exports to China will grow to $25 billion if local suppliers can grab an additional 1 per cent share of the Chinese market by 2030_ according to a study released Wednesday.

Currently_ Bangladesh's share of exports to the Chinese market is 0.05 per cent_ equivalent to a bit above $1 billion in a year_ it said.

Bangladesh has the opportunity to increase its exports to China as since July last year_ the Chinese government approved duty-free facility for 97 per cent of products from Bangladesh_ which is a big advantage for the country_ it added.

Some 8_256 products enjoy duty-free facility from Bangladesh to China as the country falls under the least developed country (LDC) category_ said MA Razzaque_ research director of Policy Research Institute (PRI).

He was presenting a keynote paper at a webinar on "Bangladesh-China Economic and Trade Relations in the aftermath of the Covid-19 Global Pandemic"_ jointly organised by Economic Reporters' Forum (ERF) and Bangladesh China Chamber of Commerce and Industry (BCCCI).

Razzaque also advocated for attracting Chinese investment in different export projects in Bangladesh. "We need to materialise investment pledges from China_" he said.

China's economy remains robust_ its trade is fast recovering and it is one of the largest sources of foreign direct investment (FDI). The significance of Bangladesh's export to China becomes clear if some trade data is analysed_ he said.

For instance_ prior to the Covid-19 pandemic_ China's exports of goods and services were $2.69 trillion and imports were $2.48 trillion. "Future growth of China will make its imports volume even bigger_" Razzaque also said.

Bangladesh should also negotiate to bring in Chinese investment pledges worth more than $27 billion. Currently_ Chinese investment in Bangladesh is $2 billion and the Chinese companies have been implementing different mega projects in the country_ he said.

After Bangladesh makes the United Nations status graduation to a developing country_ it will need a lot of FDI and China might be a major source for investment_ he said.

Negotiations are underway for a free trade agreement (FTA) to be signed between Bangladesh and China_ said Commerce Minister Tipu Munshi.

Last fiscal year_ bilateral trade amounted to $12 billion_ of which over $11 billion were goods imported from China.

China is the largest source of imports for Bangladesh and in pre-pandemic times_ Bangladesh used to import goods worth more than $18 billion from the country.

Li Jiming_ Chinese ambassador to Bangladesh_ said it was high time to consider the signing of an FTA as bilateral trade was growing alongside Chinese investment in Bangladesh.

Bilateral trade decreased by 30.6 per cent year-on-year in 2020 because of the Covid-19 pandemic_ the ambassador added.

A discussion is underway for joint production of Chinese Covid-19 vaccines in Bangladesh_ said Li Jiming_ recalling Bangladesh's medical support to China last year.

China has shown a resilient recovery from the fallouts of Covid-19_ said Mahbub Uz Zaman_ Bangladesh's ambassador to China.

In 2019_ bilateral trade was $18.5 billion. In pre-pandemic times_ it annually grew by 24 per cent_ he said.

Since China is the largest raw material supplier for the industries in Bangladesh_ so the trade balance is heavily tilted towards China_ he added.