angladesh is witnessing a wave of high-value Chinese investments, with multiple large-scale projects confirmed in recent weeks. Analysts say the move is part of a broader strategy by Chinese companies to bypass US tariffs and take advantage of Bangladesh’s rising export capacity.

The momentum comes after Washington reduced reciprocal tariffs on Bangladeshi goods, making the country a more attractive base for Chinese manufacturers affected by the US–China trade dispute.

The trend is most evident in the ready-made garment, textile, and infrastructure sectors, where Chinese firms are securing production facilities and signing long-term contracts. Experts believe the influx will accelerate industrial growth, generate tens of thousands of jobs, and strengthen Bangladesh’s role in global supply chains.

Key Investment Projects

• China Lesso Group is investing $32.77 million in a 12.5-acre facility in the National Special Economic Zone, focusing on construction and renewable energy products.

• Kaixi Group is committing $40 million to a new apparel and accessories plant in the BEPZA Economic Zone at Mirsarai, expected to employ over 3,000 workers.

• Handa Industries of Hong Kong has increased its planned textile sector investment from $150 million to $250 million. Its three factories – two garment processing units and a knit-and-dyeing plant – are projected to create 25,000 jobs.

A senior official from the Bangladesh Investment Development Authority (BIDA) described the tariff changes as a “positive tailwind” for both local and foreign investors, noting that Chinese delegations have recently visited the country and expressed optimism about the business environment.

US Tariff Policy Boosts Bangladesh’s Competitiveness
Following recent negotiations, the US has delayed re-imposing high tariffs on Chinese imports for 90 days, keeping most duties at 30% for the US and 10% for China – far below the potential 145% and 125% levels that had been considered.

At the same time, India faces effective tariffs exceeding 50% on certain goods. By contrast, the US has lowered its reciprocal tariff on Bangladeshi products from 35% to 20%, giving Bangladesh a significant cost advantage in the American market.

Dedicated Chinese Economic Zones
To attract further Chinese capital, the Bangladesh Economic Zones Authority (BEZA) plans to create two exclusive zones for Chinese companies, aiming for over $1.5 billion in investment:

• Chandpur Economic Zone-1 (3,038 acres) in Matlab North, to be developed by Power Construction Corporation of China Ltd.

• Bhola Eco-Development Economic Zone in Bhola Sadar and Daulatkhan, led by Leez Fashion Industries Limited.

Expansion is also underway at the existing Chinese Economic and Industrial Zone in Anwara, Chattogram, as Chinese exporters shift production to Bangladesh.

FDI on the Rise
Chinese investment reached $113.48 million in the first quarter of 2025 alone, compared to $208.23 million for the whole of 2024. Net FDI in Bangladesh overall rose to $864.63 million in Q1 2025 – more than double the same period last year.

Economist Mustafa K Mujeri believes this is a “golden opportunity” for Bangladesh, urging authorities to ensure smooth facilitation for foreign investors. He highlighted the long-term employment and community benefits of deeper economic cooperation with China.

Reforms Driving Investor Confidence
BIDA has implemented reforms focused on accelerating major projects, enhancing its One-Stop Service platform, resolving investor issues promptly, and developing a strong investment pipeline. A new investor relations team, a unified online portal, and an updated website with sector-specific opportunities are part of the initiative.

Government officials say these steps, along with stabilising exchange rates, inflation, and reserves, are translating into greater investor confidence – as reflected in $1 billion worth of investment proposals between December 2024 and May 2025.