China plans to make substantial investments in jute-based manufacturing in Bangladesh, according to the vice president of China Exim Bank

Chinese investors are showing strong interest in Bangladesh’s green technology, jute, textiles and pharmaceutical sectors as part of broader efforts to support the manufacturing transformation envisioned by Chief Adviser Professor Muhammad Yunus.

The visiting Vice-President of China’s Export-Import Bank, Yang Dongning, conveyed this during a meeting with the Chief Adviser at the State Guest House Jamuna on Thursday, according to a statement from the Chief Adviser’s Press Wing.

Yang was accompanied by Dr. Ma Jun, President of the state-run Institute of Finance and Sustainability.

Yang noted that while China has historically focused on major infrastructure projects in Bangladesh, its investors are now shifting toward key manufacturing industries. These include rooftop solar systems and significant investments in Bangladesh’s “golden fibre,” jute—especially for producing energy, bio-fertilisers and plastic alternatives.

She said Chinese enterprises, along with Exim Bank—which has previously financed major infrastructure ventures—are keen to back these manufacturing-focused investments.

Dr. Ma Jun highlighted Bangladesh’s traditional jute sector as a major attraction for Chinese investors, who are seeking joint ventures with local partners. He said Chinese firms are prepared to use up to one million tonnes of jute to produce green energy, fertilisers and sustainable substitutes for plastics.

“There are opportunities for joint ventures in jute with Chinese financing,” he said.

Welcoming this interest, the Chief Adviser said investment from the world’s second-largest economy could help transform Bangladesh into a manufacturing hub producing goods for export to developed countries, including China.

“We can go full speed in these areas,” Professor Yunus said, pointing to pharmaceuticals and healthcare as additional sectors with strong potential for Chinese investment.

He added that China, the world’s largest producer of solar energy, could play a major role in Bangladesh’s green energy transition through investments in solar panels and rooftop solar systems.

Professor Yunus also encouraged China to relocate manufacturing plants to Bangladesh, citing the country’s large young workforce. He suggested that shuttered state-run jute mills could be repurposed for new joint ventures.

“This is a very important dimension. We welcome this. We want to translate these into actions,” he said, referring to China’s interest in jute-based manufacturing.

Yang said Chinese companies are also considering investments in AI and e-commerce, sectors in which China is a global leader.

In response, the Chief Adviser invited Chinese firms to relocate factories to southeastern Bangladesh, where the country’s largest seaports offer strategic access to Myanmar, Thailand and other Southeast Asian markets.

“This region has extensive access to the sea. Chinese industries could relocate here to produce goods for export to advanced economies as well as to China,” he said.

Professor Yunus further urged Chinese infrastructure companies to develop railway links connecting Bangladesh with southern China to support both regional connectivity and the export of goods produced by relocated factories.

At the beginning of the meeting, the Chief Adviser extended deep condolences over the deaths of dozens of people in a residential building fire in Hong Kong.

Senior Secretary and SDG Coordinator Lamiya Morshed and Chinese Ambassador to Bangladesh Yao Wen were also present.