The Bangladesh Economic Zones Authority (Beza) is accelerating the development of the Chinese Economic and Industrial Zone (CEIZ) in Bangladesh to attract major Chinese investments, as businesses seek alternative destinations due to the tariff policies imposed under former US President Donald Trump, according to Beza officials.
The 783-acre CEIZ, located in Anwara upazila of Chattogram, has been under development since 2016 as part of a government-to-government (G2G) agreement following Chinese President Xi Jinping's visit to Bangladesh, when the foundation stone was laid.
In 2022, China appointed the China Road and Bridge Corporation as the new developer for the CEIZ to speed up construction.
After years of stagnation, work on the CEIZ has recently gained momentum, Beza officials also added.
200 Chinese cos targeted
Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (Bida) and Beza, said, "During the chief adviser's upcoming visit to China, meetings may be held with nearly 200 Chinese companies. We aim to use this visit to encourage more Chinese investments in Bangladesh."
CA's Press Secretary Shafiqul Alam added that the first bilateral meeting between CA Yunus and Chinese President Xi Jinping will be held in Beijing on 28 March.
Project back on track
Speaking about the project's progress, Harun said, "The CEIZ project was delayed for various reasons, but we are working to resolve the issues. Significant progress has been made in the past month, and we expect to announce an agreement in the coming months."
He added that several Chinese companies are already lined up to establish factories in the economic zone.
Growing Chinese interest in Bangladesh
The Bangladesh Investment Summit-2025 is scheduled to be held from 7-10 April.
At a press conference on Monday, Harun highlighted that the increased tariffs on Chinese products under the Trump administration have prompted many Chinese firms to explore Bangladesh as a manufacturing hub.
"When we speak with the Chinese business community, they say that new companies are showing interest in establishing factories in Bangladesh every day," Harun noted.
In recent years, China has emerged as Bangladesh's largest investor. Chinese companies are particularly interested in the renewable energy sector, as well as advanced textiles and garment manufacturing.
According to data from the Bangladesh Export Processing Zones Authority (Bepza) from three months ago, Chinese firms have invested $1.6 billion in 107 industrial units across EPZs and Bepza Economic Zones, creating employment for 1.33 lakh Bangladeshis.
The 783-acre Chinese Economic and Industrial Zone, located in Ctg, has been under development since 2016
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Chinese investment in Bangladesh's economic zones is rising, driven partly by tariff policies imposed by the USA and the competitive labour market, according to the Bangladesh Export Processing Zones Authority (Bepza).
So far, 41 companies from various countries have signed lease agreements to invest in the Bepza Economic Zone in Chattogram's Mirsharai, with 24 of them being Chinese firms.
Their total committed investment stands at $614.58 million, with four Chinese companies already in production. The overall proposed investment in Bepza EZ, including all foreign companies, stands at $867.22 million.
Bepza has also reported a strong pipeline of Chinese investments.
Between August 2024 and March 2025, Bepza received proposals from 34 potential Chinese investors. From July 2024 to March 2025, eight Chinese companies signed lease agreements, with a proposed investment of $153.82 million.
These companies plan to manufacture solar accessories, bags, luggage, light engineering products, readymade garments, silicon dioxide, flexible intermediate bulk containers and packaging.
Among these, YiXin Bangladesh Co Ltd is set to establish a shoe accessories manufacturing unit, while Home Joy Socks Bangladesh Co Ltd has committed $50 million for a socks and garments factory.
Four Chinese companies have already commenced operations within the economic zone.
Fengqun Composite Material Co (BD) Ltd, with an investment of $2.2 million, specialises in the production of shoe accessories and packaging materials.
Additionally, Kaixi Lingerie Bangladesh Co Ltd, KPST Shoes (BD) Co Ltd, and Mingda (Bangladesh) New Material Co Ltd are also contributing to the zone's output.
The combined investment from these four entities totals $147.55 million.
Bepza Executive Chairman Maj Gen Abul Kalam Mohammad Ziaur Rahman noted that rising production costs in China and potential increases in US tariffs on Chinese goods have led companies to seek relocation.
"Trump's China policy is a significant factor. If they have to pay extra tax, the price of their products in the American market will increase significantly. As a result, they will fall behind in competition," he said.
Adding that the workforce is decreasing in China and wages are increasing, the official said that the competitive labour market in Bangladesh is also attracting Chinese investors.
"To avoid this, some Chinese investors are looking to relocate their companies outside China. Bangladesh is their top choice among countries like Vietnam, Cambodia, Indonesia, Sri Lanka, and Myanmar," he added.
Challenges in investment
While Bangladesh seeks to attract foreign investment, water scarcity in the Bepza Economic Zone in Mirsharai has forced authorities to reject investment proposals from water-intensive industries.
"A Chinese investor proposed a $135 million investment for a textile company, but we had to decline as we could not provide the required water," Ziaur Rahman stated.
While gas and electricity are not an issue in Mirsharai, water availability remains a major challenge.
Bepza has already allocated 249 plots to 42 companies, prioritising those that require minimal water use.
To address the issue, the organisation has constructed a 45-acre lake to store rainwater and is implementing rainwater harvesting requirements for companies operating in the zone.
However, the Bepza ED added that the existing factories in production are not currently facing any water scarcity.
Future prospects
Bepza expects Chinese investment to continue diversifying beyond readymade garments into sectors such as renewable energy and raw material production for solar panels.
The Bangladesh Investment Summit-2025, scheduled for 7-10 April, is expected to attract further Chinese interest.
At a press conference on 23 March, Chowdhury Ashik Mahmud Bin Harun, executive chairman of the Bangladesh Investment Development Authority (Bida) and the Bangladesh Economic Zones Authority (Beza), highlighted that rising US tariffs on Chinese goods have increased Chinese interest in Bangladesh.
"When we speak with the Chinese business community, they indicate growing interest in setting up factories here," Ashik stated.
China remains Bangladesh's largest foreign investor, particularly in renewable energy and advanced textile manufacturing.
Notably, Chief Adviser Prof Muhammad Yunus, currently on a visit to China, urged Chinese business leaders to invest, highlighting Bangladesh as a hub for regional and global trade.
Bepza manages eight operational Export Processing Zones (EPZs), including Chattogram, Dhaka, Mongla and Ishwardi.
Recent Bepza data indicates Chinese firms have invested $1.6 billion in 107 industrial units within these EPZs, generating 133,000 Bangladeshi jobs.
Between August 2024 and March 2025, Bepza received proposals from 34 potential Chinese investors
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Highlights:
- Bangladesh plans two new economic zones solely for Chinese investors
- Chinese firms shifting due to high U.S. tariffs on exports
- Zones target textiles, electronics, ceramics, agriculture, and renewable energy sectors
- 200-member Chinese business delegation visiting Bangladesh to explore investments
The Bangladesh government is planning to establish two additional economic zones exclusively for Chinese investors, complementing the existing Chinese Economic and Industrial Zone in Anwara, Chattogram.
According to officials from the Bangladesh Economic Zones Authority (BEZA), the move comes in response to growing Chinese interest in investing in Bangladesh.
Among the planned zones, Power Construction Corporation of China Ltd (PowerChina)—a state-owned enterprise—will develop Chandpur Economic Zone-1 on 3,038 acres in Matlab North upazila, Chandpur, under a government-to-government (G2G) agreement.
The second economic zone, the Bhola Eco-Development Economic Zone, will be located in Bhola Sadar and Daulatkhan upazilas and privately developed by Leez Fashion Industries Limited, a Chinese company operating in Bangladesh.
On Sunday, a meeting of BEZA's governing board, chaired by Chief Adviser Professor Muhammad Yunus, is expected to approve the proposal for the establishment of nine new economic zones, including the two designated for Chinese investment, according to the meeting agenda.
Officials indicate that the upcoming governing body meeting may also decide to allocate land from abandoned jute, textile, and sugar mills under BEZA's management to fast-track foreign investment, ensuring gas and electricity availability to make these areas investment-friendly.
Chinese-focused economic zones
BEZA has already prepared a detailed project proposal for the Chinese Economic and Industrial Zone, which has been under development in Anwara since 2016, and submitted it to the Planning Commission. Officials expect the project to receive approval at an upcoming Executive Committee of the National Economic Council (ECNEC) meeting.
The expected investment for the Chinese Economic Zone in Anwara is $1.5 billion, while the Bhola Eco-Development Economic Zone is projected to attract $1.8 billion. The final investment amount for the Chandpur Economic Zone-1 will be determined following a technical feasibility study, BEZA officials confirmed.
According to BEZA documents, Chandpur Economic Zone-1 is situated on an island within the Meghna River. Currently, it lacks waterway infrastructure connecting it to the mainland, meaning regular transportation links are unavailable.
Due to these logistical challenges, renewable energy projects and agriculture-based industries will take priority over traditional manufacturing and industrial setups in the zone.
Following the signing of an MoU between Bangladesh and China for this economic zone, a technical feasibility study will assess the investment potential.
BEZA anticipates that the Bhola Eco-Development Economic Zone has strong potential for foreign investment in garment, textile, electronics, and ceramics industries, which could create approximately 40,000 jobs.
Growing chinese investment interest
Several BEZA officials stated that rising US tariffs on Chinese products—reaching 125%—have prompted export-oriented Chinese companies to explore alternative investment destinations.
Additionally, Chinese firms supplying raw materials for textiles and ready-made garments are increasingly considering relocating factories to Bangladesh.
BEZA Executive Chairman Chowdhury Ashik Mahmud Bin Harun has announced that 200 Chinese business representatives, led by the Chinese Minister of Commerce, will visit Bangladesh next month to explore investment opportunities. They have already initiated discussions with the Bangladesh Investment Development Authority (BIDA).
A BIDA official, speaking anonymously, confirmed that the majority of the 200-member Chinese delegation consists of raw material exporters for textiles and ready-made garments.
These companies already export goods to Bangladesh, and based on their internal cost analysis, establishing operations within Bangladesh would allow them to supply raw materials at lower costs—prompting their interest in direct investment.
Chinese delegations strengthening business ties
Additionally, Al Mamun Mridha, former Secretary General of the Bangladesh-China Chamber of Commerce and Industry, informed
The Business Standard that a business delegation from China's Yunnan province, led by the head of state, will visit Bangladesh next month.
This delegation previously visited Bangladesh last year and engaged in discussions with ACI, Energypac, and other companies regarding investments in automotive and electronics industries.
"However, due to political changes, progress on those investment plans slowed," Mridha noted.
He confirmed that the Chinese business delegation is now returning next month to revisit investment proposals.
Mridha also highlighted that many Chinese investors are keen on investing in Bangladesh's renewable energy, textiles and RMG, leather and leather goods, ICT, agro-processing, agro-machinery industries, and the blue economy.
Beza’s governing board meeting expected to approve proposal for establishment of nine economic zones on Sunday
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