Chinese investors eye strategic sectors for long-term investment

Chinese investors have shown interest in strategic sectors in Bangladesh — including textiles, renewable energy, electronics, and agribusiness — signalling a new phase of bilateral investment cooperation, according to the Bangladesh Investment Development Authority (Bida).

The interest was expressed by those among the over 250 representatives from 143 Chinese companies who took part in the China-Bangladesh Conference on Investment and Trade in Dhaka today.

Jointly organised by the Bangladesh Economic Zones Authority (Beza) and Bida, the conference served as a high-level platform to align sectoral priorities and attract industrial capital into targeted areas.

One of the outcomes was the signing of a Memorandum of Understanding (MoU) between PowerChina International Group Ltd and Beza to jointly develop a photovoltaic-based economic zone in Matlab Uttar, Chandpur.

The zone aims to integrate solar energy production with agricultural use — an innovative model for renewable-focused industrial development.

"This is more than a project; it's a strategic model for combining energy independence with food security," said Ashik Choudhury, executive chairman of Bida, at the Bida office today.

According to the MoU, China Power International Ltd will develop a 3,000-acre agribusiness-industrial zone in Chandpur.

The project's first phase is expected to create over 300 jobs, particularly for women, with plans to cultivate Chinese herbs like honeysuckle for export, he added.

He also said the initiative underscores a growing Chinese interest in agro-processing and high-value horticulture, sectors where Bangladesh has both land availability and cost advantages.

With rising production costs in China, Bangladesh's competitive labour environment makes it an ideal destination, Choudhury believes.

Chinese textile giants, including Hongdou Group and Shandong Weiqiao Pioneering Group — both Fortune Global 500 companies — expressed interest in relocating or expanding labour-intensive manufacturing operations to Bangladesh, according to a Bida official who participated in the conference.

"Textiles remain a top priority for Chinese investors looking to offset rising wages back home," the official added.

Chinese companies specialising in electronics and industrial machinery, such as Meide Group and Huantai Energy Co Ltd, also explored investment prospects.

These firms showed particular interest in developing supply chains within Bangladesh's special economic zones, aiming to serve both domestic and South Asian markets, the official added.

Besides, the China Chamber of Commerce for Machinery and Electronic Products joined sectoral discussions on regulatory support, logistics, and joint ventures in electronics assembly, fluid control systems, and solar PV manufacturing.

Choudhury said over 100 business-to-business and business-to-government meetings were held throughout the day, focusing on key sectors including textiles, electronics, renewable energy, agribusiness, and economic zone development.

Technical sessions involved 550 participants, with discussions aimed at addressing investment facilitation, policy consistency, and infrastructure readiness.

"Chinese companies are not just exploring; they're ready to act," Choudhury said. "This is about long-term industrial partnerships in sectors aligned with our national priorities."

Bida confirmed that 30 Chinese companies have applied for land within the China-Bangladesh Special Economic Zone, which had seen limited progress in recent years due to bureaucratic delays.

With better coordination between Bida and Beza now, approvals and infrastructure development are being fast-tracked.

Choudhury emphasised the role of sector-focused special economic zones in attracting investment: "We are developing zones that cater specifically to high-demand sectors, whether it's green energy, garment production, or agro-processing."

Despite regional uncertainties, investor confidence appears stable, the Bida chairman claimed, adding that Chinese investors reportedly appreciate Bangladesh's cost advantages, access to regional markets, and demographic dividend.

"Bangladesh is offering a soft landing for industries looking to relocate," said Choudhury. "The key sectors are clear, and our message to investors is even clearer: we're ready."

Choudhury called for the institutionalisation of such investment conferences. "We must hold sector-specific investment summits regularly to keep global investors engaged. The momentum is here. Now we need to sustain it."