Chinese Ambassador Yao Wen in Dhaka recently expressed China’s intention to establish a free trade agreement (FTA) with Bangladesh by 2026.

During a question-and-answer session following a seminar on the ‘Belt and Road Initiative,’ the ambassador shared that feasibility studies are currently underway, with plans to conclude them by the end of the year.

Following this, physical negotiations will commence, aiming to realise a free trade arrangement between China and Bangladesh within the next five years.

Responding to concerns about the significant trade imbalance favouring China, Ambassador Yao Wen emphasised that China does not seek a unilateral surplus from Bangladesh.

He attributed the trade imbalance to structural aspects and highlighted the need to address this issue.

The ambassador identified the FTA as a strategic approach to narrowing down the trade deficit.

Ambassador Yao Wen also noted China’s increased investment in Bangladesh and proposed that further investments, particularly in the manufacturing sector, could contribute to reducing the trade imbalance.

Source: Apparel Resources

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