Bangladesh yet to reap full benefits of Chinese market facilities

Despite almost 98 per cent duty-free access to Chinese market, Bangladesh is yet to take the opportunities due to lack of aggressive export promoting activities.

Experts suggested focusing on product quality and diversification and signing a trade agreement to boost Chinese investment-backed export expansion.

The observations came up at the seminar titled ‘Making the Most of Market Access in China: What Needs to be Done?’ jointly organized by Bangladesh China Chamber of Commerce and Industry (BCCCI) and Research and Policy Integration for Development (RAPID) at Pan Pacific Sonargaon in Dhaka on Wednesday.

Speaking at the event, Ambassador of China to Bangladesh Li Jiming hoped that Bangladesh would be member of Regional Comprehensive Economic Partnership (RCEP) soon which will help Bangladesh to promote export and welfare by trade and investment facilitation.

The relationship between Bangladesh and China is well in trade and investment. However, Chinese commercial bank can be set up in Bangladesh for the sake of more financial cooperation.

There are many projects undertaken by Chinese companies in Bangladesh. Many mega projects will also be completed soon, he added.

Jiming also said, “Bangladesh has a brighter future. There is a meaningful industrialisation. The Chinese government provides Bangladesh zero tariff export facilities. It’s very crucial. We are working at G2G level as well.”

Commerce Minister Tipu Munshi said, “Our apparels are exported more to USA and European countries but the volume is lower in Chinese market. We have to work and make proper strategy to take the opportunities.”

Bangladesh is going to be graduated to LDC by 2026. “Now we need a comprehensive action plan. Besides, gaps in different sectors should be addressed soon. And, more and more fairs and branding of our products are also important,” he added.

Presenting Key-note paper, RAPID Chairman Dr Mohammad Abdur Razzaque said despite obtaining zero-tariff market access facility to most products, Bangladesh’s exports to China remain rather modest.

Since 2021, China has provided Bangladesh duty-free market access to almost 98 per cent of tariff lines. Prior to that, Bangladesh used to get similar market access to 61 per cent of Chinese tariff lines.

“Bangladesh exported to China $680 million in FY2021 while Bangladesh imports around $13 billion from China each year. Bangladesh’s potential exports to China should be at least $3 billion,” the economist informed.

He said china is leading science and technology. China imports products from different countries every year worth around $2.7 trillion. So, it has huge market.

LDC graduation in 2026 will bring duty-free benefits to end. Bangladesh should negotiate a trade agreement with China. As part of the agreement, China can consider Bangladesh as a regional manufacturing hub to supply to other markets, the economist also said.

He added that Chinese consumers are focussing more on high-quality products. Bangladesh should develop a long-term strategy for export promotion to China as it will soon emerge as the world’s largest retail market.

Vice Chairman of Export Promotion Bureau (EPB) AHM Ahsan said they were scrutinising the matter to increase Bangladesh’s export volume.

“Our main exportable item is RMG. Our export growth is low in Chinese market despite obtaining more tariff facilities there. We have to work as per the demand of the Chinese market,” he added.

BCCCI Acting Secretary General Al Mamun Mridha said a special relation has been in place between Bangladesh and China for a long time.

The trade gap should be reduced. Bangladesh can take the opportunities through product value addition. Shipping cost should be reduced to facilitate trade.

He also urged Chinese investors to invest more in Bangladesh’s potential sectors like e-commerce and agriculture.

RAPID Executive Director and also Dhaka University Professor Dr M Abu Eusuf moderated the function with BCCCI President Gazi Golam Murtoza in the chair.