Bangladesh urges China to narrow trade gap, speed up infrastructure projects

Bangladesh has urged China to help narrow the widening bilateral trade gap and accelerate the delivery of key infrastructure projects, as Prime Minister Tarique Rahman held talks with Chinese President Xi Jinping in Beijing during his first official visit since taking office earlier this year.

Addressing the meeting at the Great Hall of the People on Friday, Rahman called on Beijing to expand imports of Bangladeshi products, including mangoes, jackfruit, guava, pharmaceuticals, aquatic products, raw leather and jute goods, in an effort to reduce the significant trade imbalance between the two countries.

"We request China's help to diversify our exports and reduce the trade gap," Rahman said, while also seeking Beijing's support in implementing Bangladesh's flagship infrastructure projects and modernising existing industrial facilities.

The visit comes at a time when Dhaka is carefully balancing its relations with China—one of its largest lenders—and neighbouring India, as the two Asian powers continue to compete for strategic influence in South Asia.

More from Business

China imported goods worth around $1.3 billion from Bangladesh last year, according to Chinese customs data. Human hair used for wig manufacturing was Bangladesh's largest export to China, followed by cotton yarn and jute products.

In response, President Xi pledged to increase imports of Bangladeshi products and encouraged greater Chinese investment in the country. Beijing also expressed its willingness to support the development of the China-Myanmar-Bangladesh Economic Corridor and expand cooperation in artificial intelligence, green development, healthcare, education, ports and water resource management.

China additionally signalled support for Bangladesh's long-pending Teesta River restoration project, describing it as an important livelihood initiative. The two sides also discussed expanding defence cooperation, although no specific defence agreement was signed, according to Bangladeshi officials.

A day earlier, Rahman met Chinese Premier Li Qiang, with both countries signing multiple cooperation agreements aimed at strengthening bilateral economic ties.

Bangladesh currently owes China around $ 6.2 billion, according to World Bank data, while the Asian Infrastructure Investment Bank has extended another $2.3 billion in loans. Chinese companies have also invested approximately $7.7 billion in Bangladesh, with nearly half directed toward the energy sector.

Analysts, however, say China has become more selective in financing overseas infrastructure as it increasingly prioritises projects with stronger strategic and logistical value under the Belt and Road Initiative.