From woven fabrics, yarn, and chemicals to heavy industrial machinery and everyday consumer items, China remains Bangladesh’s primary supply hub, accounting for 25% to 27% of its total global imports.
In stark contrast, Bangladesh’s exports to China are minimal, making up less than 2% of its total export earnings.
As Prime Minister Tariq Rahman begins a four-day official visit to China tomorrow, Bangladeshi entrepreneurs and exporters are optimistic about narrowing this massive trade imbalance.
The visit is expected to yield the signing of 13 Memorandums of Understanding (MoUs), two agreements, and one protocol.
Key discussion areas include establishing two exclusive Chinese economic zones, setting up 20 vocational technical centers, launching a Chinese bank in Bangladesh, and boosting technological cooperation.
According to Bangladesh Bank data, Bangladesh imported goods worth $18.20 billion from China in the 2024-25 fiscal year.
Meanwhile, Export Promotion Bureau (EPB) data shows that Bangladesh’s exports to China during the same period amounted to just $694.5 million—resulting in a staggering trade deficit of $17.51 billion. Essentially, Bangladesh imports 26 times more from China than it exports.
This massive deficit persists despite China granting 100% duty-free access to Bangladeshi products, effective December 1, 2024.
This facility was upgraded from 97% duty-free access in 2020 and 98% in 2022 (which included leather goods).
Chinese President Xi Jinping expanded this 100% tariff-free privilege to all Least Developed Countries (LDCs) during the Forum on China-Africa Cooperation (FOCAC) in Beijing in September 2024.
EPB statistics show that in the first 11 months of the current fiscal year (July–May), Bangladesh exported goods worth $742.5 million to China, reflecting a 15.76% growth compared to the same period last year.
Jute and jute goods led the export basket at $130 million, followed by leather products ($70+ million), knitwear ($63.5 million), footwear ($14.9 million), and home textiles (nearly $8 million).
Conversely, Bangladesh’s imports from China are dominated by industrial raw materials, garment fabrics, chemicals, fertilizers, heavy capital machinery for infrastructure, electrical components, and consumer goods.
Experts and business insiders point out that Bangladesh’s failure to capture the Chinese market stems from a lack of strategic market research by the Ministry of Commerce, EPB, or the Bangladesh Investment Development Authority (BIDA).
Critics note that at the recent China-South Asia Expo in Kunming, where Bangladesh was allocated 100 free stalls, the delegation showcased basic handicrafts and over 20 stalls of “Nakshi Kantha” instead of mainstream, scalable export goods.
Experts emphasize that long-term strategic planning is vital to penetrating the competitive Chinese market, expressing hope that the Prime Minister’s upcoming visit will pave the way for meaningful trade and investment breakthroughs.