Bangladesh and China recently signed MoUs to promote mutual trade and investment in the textile sector. The deal will enhance cooperation in trade and investment, education, delegation exchange, and transferring technology between the two countries. The signing ceremony took place in Bangladesh during a recent visit by a Chinese delegation to explore avenues for apparel sourcing and investment. China views Bangladesh as a progressive country that manufactures quality products with appropriate machinery and management. Moreover, given Bangladesh’s flourishing garment industry, China has shown increased interest in establishing trade ties in the textile sector.
The Chinese delegation’s visit comes at a time when the rising labor costs and shortage of workers are hindering the progress of the textile sector in China. Although the country has dominated the global market by producing quality prod- ucts where the apparel industry is no exception, it views Bangladesh as a key regional destination. China’s domestic clothing market has also seen substantial growth. This gives Bangladesh an opportunity to enter into unexploited Chinese markets and increase its own standard of living.
According to the agreement, China will shift some of its textile production to Bangladesh to make use of cheap labor, which the South Asian nation readily offers. This will help China invest in areas where Bangladesh has immense potential but lacks direction and capacity. Furthermore, according to the agreement China can also take advantage of the duty-free access that Bangladesh enjoys for its exports to the EU, Australia and the Far East.