Speaking at a seminar on the FTA at the Chinese embassy in Dhaka, Yao highlighted the agreement as a cornerstone for stable and healthy economic cooperation between the two nations.
The China-Bangladesh FTA is imperative for the enhancement of bilateral economic and trade relations, stated Chinese ambassador in Dhaka Yao Wen.
The Chinese ambassador emphasised current Agreement on the Encouragement and Reciprocal Protection of Investments, signed in 1996, no longer matches deepening ties between China and Bangladesh.
China has been Bangladesh’s largest trading partner for 13 years, with bilateral trade reaching $24 billion in 2023 even if China’s foreign direct investment (FDI) in Bangladesh totalled $3.2 billion by 2023, positioning China as the second-largest investor in the country.
Additionally, Chinese enterprises have completed significant infrastructure projects in Bangladesh, including railways, roads, bridges, and power plants.
The FTA encompasses trade in goods and services, investment, e-commerce, and high-tech industry cooperation, providing a robust framework for future economic interactions.
The Chinese ambassador emphasised that the current Agreement on the Encouragement and Reciprocal Protection of Investments, signed in 1996, no longer matches the deepening ties between China and Bangladesh while adding the new FTA aims to establish a comprehensive framework for sustainable and stable economic growth.
According to a feasibility study, the FTA will significantly reduce tariffs on Chinese imports to Bangladesh, lowering import prices and alleviating inflation. In the long term, reduced raw material costs will enhance the competitiveness of Bangladeshi products in international markets, bolstering the country’s foreign exchange reserves.
The FTA will also streamline Chinese investments in Bangladesh, fostering job creation, industrial upgrades, and export diversification.
Fibre2Fashion News Desk (DR)
