Despite obtaining almost 98 per cent duty-free market access in China, Bangladesh cannot take the opportunities properly yet due to lack of aggressive export promoting activities, building a solid B2B linkage, establishing a local presence, and participating in online sales, speaker said  on Wednesday.

They suggested focusing on product quality and diversification, and signing a trade agreement to boost Chinese investment-backed export expansion.

The observations came from the seminar on ‘Making the Most of Market Access in China: What Needs to be Done?’ jointly organized by Bangladesh China Chamber of Commerce and Industry (BCCCI) and Research and Policy Integration for Development (RAPID) in the city on Wednesday.

Ambassador of China to Bangladesh Li Jiming hoped that Bangladesh would be member of Regional Comprehensive Economic Partnership (RCEP) soon which will help Bangladesh to promote export and welfare by trade and investment facilitation.

“The relationship between Bangladesh and China is well in trade and investment. However, Chinese commercial bank can be set up in Bangladesh for the sake of financial cooperation more. There are a lot of projects under taking by Chinese companies in Bangladesh. Many mega projects will also complete soon,” he added.

Jiming also said Bangladesh has a brighter future. There is a meaningful industrialisation. “China government provides Bangladesh zero tariff export facilities. It’s a very crucial. We are working G2G as well.”

Read: Chinese investors can maximise profits by setting up industries in Bangladesh: Envoy

Commerce minister Tipu Munshi said, “Our apparels are exported more to the USA and European countries but the volume is lower in Chinese market. We have to work and make proper strategy to take the opportunities.”

He said Bangladesh is going to graduate LDC by 2026 and now they need a comprehensive action plan. “Besides, the gabs in different sectors should be addressed soon. And, more and more fairs and branding of our products are also requirement,” he added.

Presenting key-note paper, RAPID chairman Dr. Mohammad Abdur Razzaque said despite obtaining zero-tariff market access facility to most products, Bangladesh’s exports to China remain rather modest. Since 2021, China has provided Bangladesh duty-free market access in almost 98 per cent of tariff lines.

Prior to that, Bangladesh used to get similar market access in 61 per cent of Chinese tariff lines.

“Bangladesh exported to China $680 million in 2021 FY while Bangladesh imports around $13 billion from China each year. Bangladesh’s potential exports to China should be at least $3 billion,” the economist said.

He said China imports products from different countries every year worth around $2.7 trillion dollars. So, it has huge market.

“Bangladesh’s duty-free benefits will end with LDC graduation. Bangladesh should negotiate a trade agreement with China. As part of the agreement, China can consider Bangladesh as a regional manufacturing hub to supply to other markets,” the economist also said.

Read: 5,161 more Bangladeshi products to enjoy zero tariff benefits to Chinese market from July 1

He added that Chinese consumers are focusing more on high-quality products. Bangladesh should develop a long-term strategy for export promotion to Chinese as China will soon emerge as the world largest retail market.

RAPID executive director and also Dhaka University professor Dr M Abu Eusuf moderated the function and with BCCCI president Gazi Golam Murtoza in chair.

BCCCI Acting Secretary General Al Mamun Mridha said the trade gap between the two countries should be reduced. “Bangladesh can take the opportunities through product value addition and sipping cost should be reduced to facilitate trade.”

He also urged China investors to invest more in Bangladesh’s potential sectors like e-commerce and agriculture.

Vice Chairman of Export Promotion Bureau (EPB) AHM Ahsan said they scrutinise how to increase Bangladesh’s export volume.

“Our main exportable item is RMG. Our export growth is low in Chinese market despite obtaining more tariff facilities there. We have to work as per the demand of Chinese market,” he added.