Bangladesh remains heavily dependent on Chinese imports, with the country's import costs exceeding $16.64 billion in the last fiscal year, accounting for 26.31% of total imports. In contrast, exports to China stood at a mere $410 million, representing only 1% of total exports.

To address this significant trade deficit, China, the world's second-largest economy, has extended duty-free access to Bangladeshi products. In 2020, China granted duty-free benefits to 97% of Bangladesh’s exports, which was later expanded to 98% in 2022, including leather and leather goods. By August 2023, another 1% of products were added, and since December, Bangladesh has received full duty-free access as a Least Developed Country (LDC).

Despite these benefits, Bangladeshi business leaders stress the need for further negotiations to ensure effective market access for their products during the upcoming visit of the Chief Adviser to China.

Al Mamun Mridha, former general secretary of the Bangladesh China Chamber of Commerce and Industry, highlighted the necessity of increasing Chinese investment in Bangladesh alongside greater efforts to enter the Chinese market. Enhanced investment could help bridge the trade gap.

China has consistently ranked as one of Bangladesh’s top foreign investors, alternating between the second and third positions. However, foreign direct investment from China has not seen significant growth since the 2021-22 fiscal year. Economists, therefore, emphasize the need to attract more Chinese investment to expand exports and reduce the trade deficit.

According to Dr. Mostafa K. Mujeri, former director general of the Bangladesh Institute of Development Studies (BIDS), Bangladesh must diversify its trade basket with China and enhance production capacity to manufacture more exportable goods.

Dr. Mustafizur Rahman, a distinguished fellow at the Center for Policy Dialogue (CPD), added that strengthening trade relations with neighboring countries is crucial. Increasing Chinese investments in Bangladesh would also create new export opportunities for Bangladeshi goods in the Chinese market. Additionally, he emphasized the need to improve Bangladesh’s competitiveness in producing goods that China regularly imports.