China has announced 100% duty-free access for products from Bangladesh and other least developed countries (LDCs). The decision was conveyed by Chinese Ambassador Yao Wen during a meeting with Bangladesh’s Foreign Secretary Jashim Uddin. This move expands on earlier initiatives, as China previously provided duty-free access to 98% of Bangladeshi products in 2022 and 97% in 2020. Key beneficiaries included leather and leather goods.
China is Bangladesh’s largest trading partner, with exports to Bangladesh worth over $18.6 billion in fiscal year 2022-23, while Bangladesh’s exports to China totaled around $676 million. Despite China importing $2.4 trillion worth of goods in FY20, Bangladeshi exports accounted for just 0.05 percent, presenting significant growth potential.
Jashim Uddin noted that Chinese foreign direct investment into Bangladesh, particularly since the interim government took office, has been substantial, amounting to about $8 million. He also shared that the process for exporting mangoes to China is nearly complete, with exports expected to begin next year, and talks are ongoing to include other fruits like jackfruit and guavas.
Experts suggest Bangladesh could earn up to $25 billion in exports by capturing just one percent of China’s import market.
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