SINO-BANGLADESH ECONOMIC RELATIONS: PROSPECTS AND CHALLENGES

This article provides a comprehensive analysis of the economic relations between China and Bangladesh, examining the prospects and challenges for this growing partnership. It traces the evolution of their economic ties, from a modest relationship to one of increasing strategic importance. The study assesses the key dimensions of the relationship, focusing on bilateral trade, Chinese investment in Bangladesh, and China's role as a major provider of project aid and development finance, particularly for infrastructure projects. The research highlights the immense prospects for deepening economic cooperation, driven by the complementarities between the two economies. However, the paper also provides a balanced analysis of the challenges, most notably the massive and growing trade imbalance in China's favor. The analysis concludes that for the relationship to be sustainable and mutually beneficial in the long run, a concerted effort is needed to address this trade deficit by increasing and diversifying Bangladeshi exports to the Chinese market.

The economic relationship between China and Bangladesh has become one of the most significant for Bangladesh's development. This paper examines the prospects and challenges that define this partnership. The first part of the study is a detailed analysis of the immense prospects. It highlights the rapid growth in bilateral trade and discusses China's increasingly crucial role as a supplier of affordable capital machinery and industrial raw materials for Bangladesh's industries. The paper devotes significant attention to China's role as a major development partner, financing and constructing critical infrastructure projects such as bridges, power plants, and industrial parks. The second part of the paper provides a critical examination of the challenges. The single most significant challenge identified is the huge and structurally embedded trade deficit. The paper analyzes the reasons for this imbalance, from the relative competitiveness of the two economies to the various tariff and non-tariff barriers that have historically limited Bangladesh's access to the Chinese market. The findings lead to a clear policy conclusion: while the relationship is overwhelmingly positive and holds great promise, its long-term health depends on addressing the trade imbalance. The paper advocates for a proactive strategy from Bangladesh, involving both diplomatic efforts to secure better market access and domestic reforms to enhance the competitiveness and diversity of its export products.