Bangladesh unable to fully utilise zero-duty trade benefits of China
A lack of product diversity has resulted in Bangladesh not being able to fully utilise the generous zero-duty trade benefits offered by China, whereas Chinese imports have steadily increased, given the country's increasing reliance on a single sourcing destination.
Despite China being the single largest trading partner of Bangladesh for years, imports from there have far outweighed exports, with shipments from Bangladesh failing to cross even the $1-billion mark.
Bangladesh heavily relies on China for textile raw materials like yarn and fabrics, which account for over two-fifths of total Chinese imports by Bangladesh.
Capital machinery makes up nearly a quarter of imports, accounting for 24 per cent. Other imports include cotton.
On the other hand, Bangladesh's main export items to China are garments, although the latter itself is the largest apparel exporter in the world.
As China annually imports merely $10 billion worth garments, Bangladesh's scope to export more garments to China is quite low, as the South Asian nation lacks a range of diversified products, a Bangladesh media outlet reported.
Efforts should also be made to try and allure Chinese entrepreneurs to relocate their factories to Bangladesh and Dhaka should lobby to get large Chinese banks to open branches in the country, an expert said.
Chinese investment in Bangladesh now is mainly confined to infrastructure projects., which would bolster financing and the supply of foreign currencies, he added.
