China Backs Exclusive Industrial Zone in Bangladesh as Part of Belt and Road Push
Chinese President Xi Jinping has extended strong support for the creation of an exclusive Chinese industrial zone in Bangladesh, reinforcing the two nations’ deepening economic ties under the Belt and Road Initiative (BRI). The proposal reflects Beijing’s ambition to further integrate Bangladesh into its global infrastructure and trade strategy.
Strengthening Bilateral Economic Cooperation
During high-level discussions in Beijing, President Xi emphasized China’s commitment to working with Bangladesh on “high-quality” BRI cooperation. He outlined multiple areas for expanded collaboration, including infrastructure development, the digital economy, green energy, maritime projects, and water resource management.
The planned industrial zone is expected to attract Chinese investment and serve as a manufacturing hub for companies seeking to relocate or expand operations in South Asia. For Bangladesh, this could translate into increased industrial output, job creation, and technology transfer—boosting the nation’s export potential and economic resilience.
Focus on Trade and Investment
Alongside the industrial zone, both sides have agreed to explore negotiations on a China-Bangladesh Free Trade Agreement. Discussions also touched on improving the existing investment framework between the two countries to encourage more robust capital flow and bilateral trade.
There is also consideration being given to reducing interest rates on loans extended by China to Bangladesh—an important point as Bangladesh manages its growing infrastructure financing needs. Lower borrowing costs could ease debt servicing pressures while enabling continued development under BRI-linked projects.
Strategic and Economic Implications
The establishment of an exclusive Chinese industrial zone marks a significant shift in China’s regional engagement model, reflecting a move beyond mere infrastructure building toward more integrated industrial cooperation. For Bangladesh, the move offers an opportunity to align itself with global supply chains while strengthening its strategic partnership with China.
At the same time, the development could invite regional scrutiny, particularly from other stakeholders in South Asia, given the geopolitical sensitivity surrounding Chinese investments in the Indo-Pacific region.
