Tap into export potential in China market: Researchers

Researchers at a discussion on Saturday said Bangladesh should tap into the huge export potential of its products in the Chinese market.

Annual export earnings from China alone could be $20-25 billion if Bangladesh could grab just 1 percent share of the Chinese market, said M Abu Eusuf, executive director at Research and Policy Integration for Development.

Bangladesh China Chamber of Commerce and Industry (BCCCI) and the Export Promotion Bureau (EPB) jointly organised the virtual discussion titled “Prospects of Bangladeshi Products in Chinese Market: How to Realise the Potential of Preferential Treatment”.

Nazneen Ahmed, United Nations Development Programme’s country economist, said Bangladesh should focus on Chinese investment and the export market equally for smooth graduation from the least developed country (LDC) status.

She said the belt and road initiative would be the trump card for negotiation with China.

China maintained its position as the world's largest manufacturing hub for 11 straight years in 2021, accounting for nearly 30 percent of the global manufacturing output, state-run media agency Xinhua said.

Bangladesh Ambassador to China Mahbub Uz Zaman, who was the guest of honour, said the government was building a permanent exhibition centre in Shanghai to display Bangladeshi products.

“We should focus on product diversification and utilise the duty-free access facility,” he said.

Mohammad Mahfuz Kabir, research director at Bangladesh Institute of International and Strategic Studies who presented the keynote, said the top five Bangladeshi items had constituted around 76 percent of total exports to China in the fiscal year 2020-21.

He said China had granted duty-free access to 97 percent (8,256) of Bangladeshi products since July 1 last year, which was expected to bring new opportunities for Bangladeshi exporters and businesses.

BCCCI Joint Secretary General Al Mamun Mridha said China accounts for more than one-fifth of Bangladesh’s total imports but its share in Bangladesh’s exports is very small, just around 2 percent.

China should help Bangladesh expand its exports further and reduce the bilateral trade deficit to a reasonable level, he said.

In the fiscal year 2018-19, bilateral trade between Bangladesh and China was about $15 billion, but Bangladesh’s export to China was less than $1 billion.

Bangladesh’s export to China was $680.65 million in the 2020-21 fiscal year while import from there was $13.55 billion.

EPB Director General Mahbubur Rahman presided over the event, which was moderated by Bangladesh Institute of Development Studies Research Associate Siban Shahana.