Chinese firms to invest in textile, fintech and EVs

Bangladeshi and Chinse companies yesterday signed 18 memorandums of understanding relating to investments in different sectors of Bangladesh.

Chinse companies have showed interest in investing in Bangladesh’s textile, electric vehicle, solar power, fintech, and technology sectors, according to a statement from Bangladesh Securities and Exchange Commission.

Under an MoU worth $50 million, Bangladeshi mobile financial service company Nagad will forge a partnership with Huawei Technologies to build a digital financial platform.

A $20 million investment deal was signed for the “Bangladesh Capital Market Digital Transformation Project” between Dex Bangladesh Tech Ltd and Huawei Technologies.

Deshbondhu Group of Bangladesh signed an MoU worth $400 million with Chemtex and China Chemical CNCC to establish a polyester staple fibre and other man-made fibre textile mill on 33 acres of land in Mongla Economic Zone.

The MoUs were signed on the sidelines of the “Summit on Trade, Business and Investment Opportunities between Bangladesh and China”.

Bangladesh embassy in Beijing, Bangladesh Investment Development Authority, the SEC, and China Council for the Promotion of International Trade organised the event at the China World Summit Wing of Shangri-La in Beijing.

Speaking at the summit, Prime Minister Sheikh Hasina said now is the time for Bangladesh and China to explore new areas of further collaboration in trade and investment to create a prosperous future for both nations, reports UNB.

“Our shared vision for economic growth, technological advancement, and sustainable development forms the cornerstone of our bilateral relations,” she said.

Hasina, now on an official visit to China, invited the Chinese businesses to visit Bangladesh, explore opportunities, and experience the warmth and hospitality of Bangladeshis.

“You will find in us all the support and assistance you need. Let us work together to build a stronger, more prosperous, and more connected world.”

The PM said, “We are committed to addressing trade imbalances and creating a more equitable trade relationship.”

Hasina said Bangladesh is keen on exporting more products, including textiles, garments, leather goods, jute products and agricultural produce, to China.

“We welcome Chinese investments in our export-oriented industries, which will help us diversify our export basket and reduce trade deficits,” she said.

The premier encouraged Chinese companies to form joint ventures with Bangladeshi firms.

She also invited Chinese companies to establish R&D centres in Bangladesh, leveraging Bangladesh’s skilled workforce and academic ingenuity.

Hasina called upon the Chinese business community to consider investing in infrastructure; energy, including renewable energy; and logistics in Bangladesh.

She said that climate-resilient smart farming opens opportunities for collaboration.

The premier said Bangladesh plans to establish three special tourism zones where Chinese firms can invest.

She also urged Chinese investors to explore portfolio investments in Bangladesh, as the SEC is working to further develop the country’s capital markets.

“We have made significant progress in developing a robust bond market. We are on the brink of introducing derivative products, which will further diversify and widen our financial markets,” she said.

“China has been significantly contributing to our infrastructure projects, technological advancements, and overall growth of our economy.”

She said Bangladesh offers one of the most liberal investment regimes in the world, and BIDA provides a number of services to foreign investors under one roof.

“… We are establishing 100 special economic zones [SEZs], each equipped with state-of-the-art facilities.”

Bangladesh is also developing five country-specific economic zones to foster closer economic ties with the key partner nations, the PM added.

OTHER MOUS

China Road and Bridge Corporation and Ningbo Cixing Company Ltd signed an MoU on the investment framework agreement in Bangladesh’s Chinese Economic and Industrial Zone.

Billion10 Communications Ltd and CHTC (HengYang) Intelligent EV Company Ltd signed a deal on manufacturing electric vehicles.

The Bangladeshi firm signed another MoU with Ningbo Sun East Solar Co Ltd to set up a solar farm in Sylhet. It also made a deal with HeSheng (Hoshine) Silicon Industry Co Ltd for investment in Bangladesh’s renewable energy sector.

Billion10 also signed an MoU with Zhongke Guorui (Zhuhai) New Material Technology Co Ltd for investment in Bangladesh’s waste lubricant oil recovery and refining industries.

EB Solution Ltd and Hongji Intelligent Transport Co Ltd signed a deal to invest in the Dhaka City Mobile Project.

The Bangladeshi company signed another deal with Ningbo Shering New Energy Technology Ltd for investment in Bangladesh’s smart cold chain logistic solutions sector.

Under an MoU on technical and financial investment collaboration, $20 million will be invested in Bangladesh’s waterways and road transport. The deal was signed between Intraco Refueling Station PLC and Shijiazhuang Enric Gas Equipment Co Ltd.

Zibo Jinhuateng Paper Machinery Co Ltd will invest in the paper machinery sector in Bangladesh jointly with Nitol Niloy Group.

Chinese firm Zhengzhou Dongfeng Mid-South Enterprise Company will invest in TBR Tyre projects in Bangladesh in collaboration with Nitol Niloy.

Chinese company Shandong Sunite Machinery and Nitol Niloy signed an MoU to invest in Bangladesh’s Aerated Autoclave Concrete (AAC) Block.

Chinese firm Daliam Huahan Rubber and Plastic Machinery will invest in Bangladesh’s rubber machinery sector with Nitol Niloy.

ZP Technology (Anhui) Co Ltd will invest in producing lithium batteries and electric vehicles in Bangladesh jointly with Nitol Niloy.

ROHINGYA REPATRIATION

During a meeting with the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing, Hasina sought Chinese assistance in repatriating Rohingyas to Myanmar.

Chairman Wang Huning of the CPPCC, who led a delegation in the meeting, said they would discuss the matter with Myanmar and play a role of facilitator.

“We will make our highest efforts to initiate Rohingya repatriation through holding discussions with Myanmar,” he said.

Briefing reporters after the meeting, Foreign Minister Hasan Mahmud said different bilateral issues, including Rohingyas; reducing the trade gap; the celebration of the 50 years of bilateral relations; and the contact between Awami League and Chinese Communist Party came up for discussion.

‘CUT INTEREST RATES OF LOAN’

Hasina yesterday asked the Asian Infrastructure Investment Bank (AIIB) to further cut the interest rates on its loan for Bangladesh.

She made the request when the president of the Beijing-based lender, Jin Liqun, along with high officials of AIIB paid a courtesy call on her.

The AIIB officials said Bangladesh is one of its biggest borrowers and the bank has given Bangladesh a special concession in interest rate.

Financing infrastructure, river dredging, and climate-change resilience came up for discussion.

PM LEAVES FOR HOME TONIGHT

Wrapping up her visit, Hasina will leave Beijing tonight and reach Dhaka in the wee hours of tomorrow, foreign ministry sources said.

She was earlier scheduled to leave Beijing on Thursday morning.