Chinese interest in relocating factories to Bangladesh is rising as Chinese companies face potential tariff hikes on exports to the U.S. following Donald Trump’s recent election win. Anticipating tariffs on Chinese goods potentially reaching up to 60%, Chinese businesses are exploring Bangladesh as a manufacturing hub to avoid high U.S. duties and to capitalize on Bangladesh’s duty-free export access to China. Key inquiries are coming from the leather, textile, and garment sectors.
Additionally, Bangladesh’s growing reputation for sustainable manufacturing, with its high number of LEED-certified garment factories, and future alignment with the EU’s sustainability directives, make it an appealing option for foreign investors. Chinese companies are also interested in joint ventures or investments, especially in ailing factories, but await clearer signals on Bangladesh’s political stability.
While some Chinese investments have been gradual, business leaders believe the relocation trend may accelerate over the coming months as policies solidify and the new U.S. administration takes office. The Export Promotion Bureau and Bangladesh Investment Development Authority have been fielding frequent inquiries, indicating a strong potential for future Chinese investment once conditions stabilize.
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