President of the Chinese Enterprises Association in Bangladesh (CEAB), Han Kun, has underlined the importance of finalizing a Free Trade Agreement (FTA) as early as possible between the two countries, saying it would unlock greater trade, investment and long-term cooperation between the two.
In an exclusive interview with BSS, Han said the economic cooperation between Bangladesh and China has already deepened significantly, and a proper FTA would act as a vital institutional framework to further enhance bilateral opportunities.
"Many Chinese manufacturing companies are coming to Bangladesh because of its favourable investment environment," he said, adding: "The delay in concluding the FTA is a bit concern for potential investors."
He elaborated that Chinese investors are confident in Bangladesh's stable growth - private investment in the power sector has increased by around 8 gigawatts in recent years, of which about 54 percent (roughly 4 GW) has come from Chinese investment.
Within the total installed capacity of around 27-28 GW, Chinese companies account for a significant portion, he added.
Han pointed out that one key concern for Chinese firms in the manufacturing sector is the potential constraint on raw materials and equipment imports through Bangladesh's ports. "If the FTA could be signed sooner, these challenges would be eased and investment flow would be accelerated," he observed.
He acknowledged that some stakeholders remain cautious because Bangladesh currently runs a significant trade deficit with China, as it imports far more from China than it exports. A 2025 analysis shows that Bangladesh has yet to fully utilise the zero-duty access offered by China due to limited product diversification and export capacity.
But, Han urged this short-term imbalance be viewed in a long-term, strategic light: "Some believe that signing an FTA may result in a greater influx of Chinese products into Bangladesh. But, in the long run, it will help Bangladesh become a global export hub leveraging China's strong manufacturing base."
He noted that China already accounts for about 30 per cent of global manufacturing capacity. "BSS
