The prime minister's message, including promises to the Chinese business community during her state visit to China, may inspire hope about boosting trade and investment ties between Bangladesh and China, albeit the uncertainty surrounding Bangladesh's business regime over which hangs a question mark. There is no reason to think it is conducive enough to materialise her intent. Asking foreign businesses to explore opportunities, except in rare cases here, has for the most part been a pious intent so far.
However, it should be well acknowledged that in view of the Bangla-China tie-up over the past decade in major infrastructure projects in Bangladesh, with China emerging as a significant development partner, chances of growing trade and investment-related activities between the two countries may not at all be dismissed off-handed. While China is the number one source of Bangladesh's imports, with projection to grow further, prospect of Chinese investment in select business sectors in Bangladesh is considered bright by business experts. The reality, however, is that no substantial Chinese investment has taken place, as yet. The PM in her address while drawing attention of Chinese investors mentioned some potential areas for investment. She particularly referred to Chinese investment including joint venture in Bangladesh's export-oriented industries as a means to facilitating technology transfer, skill development, and market access for both parties. Investment in research and development is crucial to fostering innovation and competitiveness, she added. She invited Chinese companies to establish R&D centres in Bangladesh, leveraging Bangladesh's skilled workforce and academic ingenuity. Among the sectors she considered appropriate for Chinese investment include infrastructure, energy, logistics, IT parks, agro-processing, renewable energy, waste management, and green technologies. Also she sought investment in suitable areas with buy-back arrangements.
According to business analysts, a potentially transformative aspect of Chinese collaboration could involve relocating production units that are facing difficulties to thrive in China due to exorbitant wage hike and cost of other production factors. Countries like Vietnam and Cambodia have already capitalised on this due to favourable trade policies, supportive infrastructure and incentives that have made them preferred destinations for business relocation from China. Bangladesh, as of now, has not been able to make itself a place of choice in this regard. Clearly, exploiting this opportunity hinges on infrastructural and logistics services including among others ready availability of power and energy.
Media reports on the PM's visit say that more than a dozen MoUs have been signed among prospective business partners of both countries in some potential fields such as renewable energy, waste management, fintech, and green technology. While MoUs are but an expression of intent, and are at their best indicative of future prospect in collaboration, gearing things up for a steady move forward would require concerted efforts towards facilitation of all sorts. One such move could be providing the Chinese Economic and Industrial Zone (CEIZ) at Anwara in Chattogram required facilities which, once completed, can be expected to become a pivotal hub for Chinese investment in a big way. Proactive policies are thus crucial to make things happen.
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