China has decided to provide 100 duty-free access of Bangladeshi exports, alongside the other Least Developed Countries, to the Chinese market.
Chinese Ambassador to Bangladesh Yao Wen conveyed the decision when he called on Bangladesh Foreign Secretary Jashim Uddin at the foreign ministry today.
"The Chinese ambassador said in the Sino-Africa summit in early September, China decided to provide 100 percent tariff line to the LDCs including Bangladesh," Jashim Uddin told reporters.
Earlier in 2022, China granted duty-free access to 98 percent of Bangladeshi goods, including 383 new products, especially leather and leather-made goods. It was an increase from 97 percent duty-free facility to Bangladeshi products in 2020.
China is Bangladesh's largest trading partner, with China exporting products to Bangladesh worth more than $22.5 billion, while Bangladesh's export is only about $600 million.
Jashim Uddin said the highest foreign direct investment after the formation of the interim government came from China, and it is about $8 million.
"We are expecting increase in our export to China," he said, adding that the procedures of exporting mango to Bangladesh is almost completing. "We can export mango to China from next year."
The foreign secretary also said Bangladesh is also working with China to export other fruits like jackfruit, guava, some other products.
In FY 2019-20, China imported $2.4 trillion worth of goods where Bangladesh's portion was only 0.05 percent demonstrating the huge trade scope that existed in the Chinese market for Bangladesh.
MA Razzaque, head of Research and Policy Integration for Development, in a research said if Bangladesh can grab only 1 percent share of China's market, then it could earn $25 billion.
Economists say Bangladesh's main export item is readymade garments and increasing export to China will need require Bangladesh to diversify its export basket.
