Despite China offering extensive trade benefits to Bangladesh, particularly zero-duty access for 98% of Bangladeshi products, exports to China have not significantly increased. Bangladesh’s exports to China amounted to $761.02 million in the July-May period of the last fiscal year and $677.35 million in FY 2022-23, contrasting sharply with imports from China, which exceeded $23 billion annually. This trade dynamic underscores China’s role as Bangladesh’s largest import source. Challenges include a lack of product diversification beyond textiles and apparel, which constitute over 84% of Bangladesh’s exports. Efforts to negotiate a free trade agreement (FTA) aim to enhance trade and investment, potentially boosting Bangladesh’s market share in China’s imports from its current 0.04% to a more significant level, as observed in comparable economies like Vietnam. Geopolitical tensions present Bangladesh as an attractive destination for Chinese investment in export-oriented manufacturing.
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