China urges Bangladesh to improve investment climate20 May 2025 20:40
China has sought a better investment climate in Bangladesh as its businesses are ready to set up establishments here, officials said on Tuesday.
They said many Chinese businesses at a working-group meeting in Dhaka last week expressed their willingness to invest in Bangladesh and stressed the need to improve the business climate
The 'impoverished business climate' has long been preventing them from moving ahead with their plans, they pointed out at the meeting of the joint Bangladesh-China Working Group (WG) on economic cooperation and investment.
The meeting was held after a six-year hiatus.
Representatives from the Chinese Ministry of Commerce, the Chinese Embassy in Dhaka, and the Economic Relations Division (ERD) of Bangladesh were present at the meeting.
Presided over by ERD Additional Secretary Mirana Mahrukh, the WG discussed details on the prospects of investment and economic cooperation between Beijing and Dhaka.
The meeting was held ahead of the Bangladesh-China Joint Economic Commission (JEC) meeting which is expected to be held in Dhaka on June 1.
China is the largest trading partner of Bangladesh. In the last fiscal year (FY 2023-24), Bangladesh imported goods worth US$16.637 billion, 26.40 per cent of the country's total imports, showing higher demand for Chinese products in Bangladesh.
According to Bangladesh Bank data, China, including Hong Kong, has emerged as a significant investor in Bangladesh, with FDI reaching $2.789 billion as of December 2024, making it the country's second-largest investor.
Chinese enterprises are actively involved in various sectors such as textiles, energy, manufacturing, and infrastructure projects like the Padma Bridge and Karnaphuli Tunnel in Chattogram.
Many Chinese companies are also looking to diversify their production bases, particularly due to rising production costs and geopolitical tensions, making Bangladesh a potential destination for their "China Plus One" strategy.
Meanwhile, a leader of the Bangladesh-China Chamber of Commerce and Industry (BCCCI) said that while Bangladesh actively seeks to attract foreign direct investment (FDI), particularly from China, a number of persistent challenges in its business climate are making Chinese companies reluctant to fully commit to the investment.
https://thefinancialexpress.com.bd/economy/china-urges-bangladesh-to-improve-investment-climate