China’s gift to world and Bangladesh’s opportunities
SOUTH Asian countries are today confronting challenges of economic vulnerability as a re sult of the Covid-19 pandemic, climate change and the rise of serious geopolitical rivalry posed by emerging military groupings and showdowns
Simultaneously, a rising trend of trade protectionism with new hidden barriers and de-globalization in the global market are restricting the ability of the economic and investment sectors to promote global trade sustainably.
In this context, China’s open door and cooperation policy offers a glimmer of hope for the region’s prosperity and development, resuming economic growth at a faster rate.
In order to fulfil President Xi Jinping’s pledge to turn the Chinese market into a market for the world, a market shared by all, and a market accessible to all, China has taken a number of concrete steps in recent years, including an all-round opening-up strategy that allows foreign enterprises greater access to the domestic market and a foreign investment law that ensures a business-friendly environment.
At the same time, China has taken new steps to strengthen bilateral, multilateral and regional cooperation by joining trade blocs such as the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), hosting a series of mega trade exhibitions and improving connectivity through the Belt and Road Initiative (BRI).
Of them, China Import and Export Exhibition (Canton Fair), China International Import Expo (CIIE), China International Fair for Trade in Services (CIFTIS), China-ASEAN expo, China-South Asia expo, Euro-Asia Economic Forum and Trade Cooperation Expo, Inter-textile Shanghai Apparel Fabrics, and China Yangling Agricultural High-tech Fair are all key exhibitions that will undoubtedly be of great significance to developing economies like Bangladesh.
It is expected that Bangladesh’s participation in these forums would open vistas of business opportunities and further enhance bilateral relations and co-operation.
According to data, From January to July 2021, the overall import and export volume of China and Bangladesh was US$13 billion, a rise of 58.9% year on year.
Despite the fact that bilateral trade favours China heavily, Bangladesh has enormous potential that has yet to be realized.
It is mentionable that China imported goods worth $2.4 trillion in the 2019-20 fiscal year and Bangladesh’s share was very insignificant (0.05%). In the next ten years, China is expected to import a total of $22 trillion worth of goods. Hence, China’s Expo platform will provide a great opportunity for Bangladesh to explore the vast Chinese market and expand exports to bridge the bilateral trade gap and increase revenue.
Bangladesh’s major export items, readymade-garments and others including leather goods, jute and jute goods, agricultural products, frozen and live fish, pharmaceutical products, plastic, sports goods, handicrafts and tea have strong competitive edge in the international market.
But its limited exports destination (Mainly USA and EU) might put Bangladesh in a more challenging position. Because, US has suspended GSP for Bangladesh in June 2013 and India imposed anti-dumping duty on the export of Bangladeshi jute goods in January 2017 for a period of five years.
Also to note, there is no guarantee to get into the EU’s GSP+ scheme on expiry of the EBA initiative after graduation from the LDC group in 2026.
Amid such looming economic uncertainty, the good news is that China has provided duty-free access to 97% of Bangladeshi products (a total 8256 products) from July 2020.
The expos are important ways to learn about Chinese consumer preferences and to tap into vast China market.
Participating these expos Bangladesh can display and popularize its flagship products and diversify its export destination globally as a large number of buyers, entrepreneurs and companies from Europe, America, Australia, Southeast Asia, Middle East, and Africa attend there.
In short, the expos offer a platform to understand Chinese people, Chinese market and China’s development as well as to make new linkage with consumers, companies, experts and different technologies which could lead product specialization and value addition in order to adapt to the conditions of China, a market with 1.4 billion people and over 400 million middle-income people.
In this regard, China can provide technical assistance in framing policy options and export-development strategy to help Bangladeshi products reach the Chinese market.
Like Bangladesh, South Asian countries, can use the expos to promote their brands, build new trade image and expand their business opportunities in China and the worldwide market.
Along with economic and commercial gains, such platforms would forge stronger cultural cooperation which will with further enhance the bilateral brotherly relations and promote win-win cooperation for common prosperity.
—The writer is contributing columnist, based in Dhaka, Bangladesh.
