Bangladesh Secures $2.1B in Investments and Loans from China

Greenwatch Desk Diplomacy 2025-03-28, 6:54pm

Bangladesh has secured a commitment of $2.1 billion in investments, loans, and grants from China during Chief Adviser Professor Muhammad Yunus’s landmark visit to China, officials reported.

Nearly 30 Chinese companies have pledged $1 billion to invest in the exclusive Chinese Industrial Economic Zone in Bangladesh, following Yunus’s call for increased private sector investment in the country’s manufacturing sector, said Bangladeshi officials and Chinese Ambassador to Dhaka, Yao Wen.

In addition, China has committed to lending $400 million for the Mongla Port modernization project, $350 million for the development of the China Industrial Economic Zone, and $150 million in technical assistance. The remaining funds will come as grants and other financial support.

“This is a milestone visit,” said Ambassador Yao Wen, referring to Yunus’s four-day visit to China, marking a significant step in bilateral relations.

Ashik Chowdhury, Executive Chairman of the Bangladesh Investment Development Authority, stated that the visit could spark a “surge” in Chinese investments in Bangladesh.

During a bilateral meeting, Yunus requested Chinese President Xi Jinping’s support in encouraging Chinese private companies to invest in Bangladesh. President Xi assured Yunus that China would promote the relocation of manufacturing plants to Bangladesh as Chinese companies seek to diversify production.

“This visit will be instrumental in persuading many Chinese companies to invest in Bangladesh. It’s only a matter of time,” Chowdhury said.

On Friday, Yunus and Chowdhury addressed over 100 Chinese companies, including some of the world’s largest, encouraging investment in Bangladesh’s manufacturing sectors, particularly in advanced textiles, pharmaceuticals, light engineering, and renewable energy.

“So far, the response has been very positive,” Chowdhury added.