Chinese investments flow into Bangladesh

Chinese Investment in Bangladesh Accelerates Amid US Tariff Shifts

Bangladesh is witnessing a wave of major Chinese investments, with several large-scale projects finalised in recent weeks as companies seek to bypass US tariffs and capitalise on the country’s rising export capacity.

The trend follows Washington’s move to cut reciprocal tariffs on Bangladeshi goods, making relocation more attractive for Chinese manufacturers caught in the US–China trade dispute. The impact is most visible in the RMG, textile, and infrastructure sectors, where Chinese firms are ramping up production and locking in long-term deals.

Economists say the influx could boost Bangladesh’s industrial growth, generate tens of thousands of jobs, and strengthen its role in global supply chains.

Key Deals

• China Lesso Group – Secured 12.5 acres in the National Special Economic Zone for a $32.77m plant producing construction and renewable energy products.

• Kaixi Group – Investing $40m in an apparel and accessories facility in Mirsarai BEPZA Economic Zone, creating 3,000 jobs.

• Handa Industries (Hong Kong) – Increasing its textile sector investment from $150m to $250m, with three factories expected to employ 25,000 people.

BIDA officials describe the tariff cuts as a “positive tailwind” for both local and foreign investors, noting growing interest from Chinese delegations assessing opportunities in Bangladesh.

US Tariff Dynamics Boost Bangladesh
Recent US trade policy changes have enhanced Bangladesh’s competitive edge. President Donald Trump has delayed reinstating steep tariffs on Chinese goods, keeping most duties at 30% for the US and 10% for China. By contrast, tariffs on Bangladeshi goods have been cut from 35% to 20%, while India faces higher reciprocal rates of up to 52.1%.

Special Economic Zones for Chinese Firms
BEZA plans two dedicated zones for Chinese companies, targeting over $1.5bn in investment:

• Chandpur Economic Zone-1 (3,038 acres) – Developed by PowerChina under a G2G deal.

• Bhola Eco-Development Economic Zone – Developed by Leez Fashion Industries Ltd.

BEZA is also expanding the Chinese Economic and Industrial Zone in Anwara, Chattogram, to accommodate export-oriented Chinese manufacturers and raw material suppliers.

FDI Surge
Chinese FDI reached $113.48m in Q1 2025, with total 2024 inflows at $208.23m. Overall net FDI hit $864.63m in Q1 2025 – a 114% year-on-year jump.

Former Bangladesh Bank chief economist Mustafa K Mujeri says Bangladesh should seize this moment by ensuring smooth facilities and services for investors, highlighting the long-term employment and community benefits.

Reform Gains
BIDA’s reform agenda includes faster approvals for high-impact projects, upgraded One-Stop Service, rapid investor issue resolution, and a stronger investment pipeline. Efforts also include a unified investment portal, sector-specific promotion campaigns, and expanded private–public cooperation following April’s Bangladesh Investment Summit.