Total exemption from duties will ensure a smooth entry into Chinese market

China has granted 100% duty-free access to Bangladesh for its export products. Why are they offering this facility now?

China is the largest consumer market in the world and gaining access there is crucial for any country. While many major global brands and a variety of diversified products from other countries are doing well in China, we were unable to establish a strong foothold due to the lack of a competitive environment. 

Keeping this in mind, they have increased the facility from 98% to 100%. They want to elevate the relationship between the two countries to a new level.

Moreover, a direct shipping line between Bangladesh and China has recently been launched, reducing both time and cost for transporting goods. This has made the entry of our products into the Chinese market smoother.

Bangladesh's export sector is heavily reliant on RMG, a field in which China is more advanced than Bangladesh. Besides RMG, what other products can Bangladesh take advantage of?

Although China is the world's top RMG producer, there is still demand for Bangladesh's RMG products in the Chinese market, and our businesses are already exporting garments to the country.

However, we must explore opportunities to export other products that are in demand in China. The leather sector has the most potential as there is a high demand for Bangladeshi cattle hides there, and being a Muslim-majority country, we have the opportunity to export a large volume of hides.

The second area of opportunity lies in marine resources. Frozen fish, seaweed, and various other marine products are in demand in China, and we, with our vast maritime boundary, can capitalise on this market. 

Additionally, Bangladesh's agro-processing industry holds significant promise. There are also opportunities for collaboration and exports in the ICT and software sectors, leveraging expertise from both countries. Also, as China's e-commerce platforms have a global presence, entry into that market will bring good opportunities for us.

Bangladeshi businesses were unable to fully capitalise on the 98% duty-free opportunity. Now that 100% has been granted, what must Bangladesh do to take full advantage?

We were unable to utilise the facility because of weaknesses of Bangladeshi businesses. Our exporters cited issues like non-tariff barriers, value addition requirements and China's regulatory framework as reasons. Along with the businesses, the Bangladesh government is also to be blamed for the missed opportunity.

Governments of other countries that received similar benefits from China established pavilions to showcase their products. They took active steps to ensure that Chinese consumers and businesses became familiar with their products. Businesses from those countries also pursued private-to-private agreements to expand their market presence. We lagged behind there.

Other major barriers include the language gap, lack of legal knowledge, and product diversification. However, if these challenges are addressed, we have a chance.

Is the BCCCI taking any initiatives to ease the entry of our businesses into the Chinese market?

We had taken initiatives right after China granted duty-free access to 98% of our products. However, for various reasons, it did not progress as expected.

To support Bangladeshi entrepreneurs interested in entering the Chinese market with diversified products, we have started providing training programmes. A course to learn the Chinese language has already been launched, and it is being offered to entrepreneurs for free.

We will soon organise a workshop with Bangladeshi businesses, the Chinese embassy in Dhaka, and new entrepreneurs interested in exporting. The focus will be on strategies to overcome non-tariff barriers to exports in China and providing businesses with easy access. To promote Bangladeshi products, we are also taking the initiative to arrange pavilions and stalls at various exhibitions in China.

Will a change in government in Bangladesh affect Chinese investments and businesses?

The relationship between Bangladesh and China is not recent or political. Since the 1980s, China has been supporting Bangladesh in various sectors. As a low-income and developing country in Asia, Bangladesh has received significant support from China for its development.

China has helped build 8-10 friendship bridges. Additionally, to help Bangladeshi products reach global markets, China has contributed in the development of exhibition and convention centres, along with several other establishments.

In terms of improving the communication network, China has implemented several projects in roads, railways, and waterways, and has played a key role in many mega projects, including the Padma Bridge and Bangabandhu Tunnel. 

Moreover, a significant number of Bangladeshi students go to China each year, bringing back technological and technical knowledge, which has further strengthened the deep relationship between the two nations.

China has played a significant role in the industrialisation of Bangladesh, alongside its contributions to infrastructure. Major industries in the country, including the RMG sector, have been built relying heavily on Chinese capital machinery and raw materials. 

Two decades ago, the import of capital machinery was a costly affair, but now China provides these at half the price or even less, making it more affordable for Bangladeshi industries to grow and expand.

After the new government took office in Bangladesh, the chief adviser requested Chinese investment in green energy. In addition to green energy, China has expressed interest in further investing in Bangladesh's communication infrastructure. China aims to strengthen its relationship with Bangladesh and help the country become an economic hub focused on Asia.