Han Kun, President of the Chinese Enterprises Association in Bangladesh (CEAB), has called for the swift conclusion of a Free Trade Agreement (FTA) between Bangladesh and China, arguing that the deal would unlock greater investment, expand bilateral trade and strengthen long-term economic cooperation.
In an interview, Han said economic ties between the two countries had already deepened significantly, and that a well-structured FTA would provide the institutional framework needed to tap the full potential of the partnership. “Many Chinese manufacturing companies are coming to Bangladesh because of its favourable investment environment,” he noted, adding that delays in finalising the FTA were creating uncertainty among prospective investors.
Han highlighted rising Chinese involvement in Bangladesh’s power sector, where private investment has increased by roughly 8 gigawatts in recent years. Of that, about 54%—around 4 GW—has come from Chinese companies, which now account for a substantial share of the country’s 27–28 GW of installed capacity.
He also pointed to bottlenecks at Bangladeshi ports, particularly restrictions on equipment and raw material entry, as a major concern for Chinese manufacturers. These challenges, he said, could be eased if the FTA were completed soon, helping accelerate new investment.
While acknowledging Bangladesh’s sizeable trade deficit with China, Han argued that this short-term imbalance should not overshadow long-term strategic gains. Bangladesh has struggled to fully leverage China’s zero-duty access due to limited product diversification and export capacity, but an FTA, he said, could help reverse that.
“Some worry that an FTA will bring more Chinese goods into Bangladesh,” Han said. “But in the long run, it will allow Bangladesh to use China’s strong manufacturing base to become a global export hub.”
He noted that China accounts for more than 30% of the world’s industrial capacity. Chinese companies, supported by CEAB data, have already made significant contributions to Bangladesh’s infrastructure—from power and transport projects to industrial zones—helping reduce development costs and enhance national capacity.
“Chinese companies play a vital role in providing Bangladesh with affordable equipment, semi-products and technology essential for building export-oriented manufacturing,” Han added. With the right policy framework, he said, Bangladesh can leverage China’s capital, capacity and technology to position itself as a major manufacturing hub serving global markets.
