China plans major investment in jute-based manufacturing

China Exim Bank Vice-President Yang Dongning has said that Chinese investors are eager to extend their investment portfolio in Bangladesh to cover manufacturing areas, particularly the jute sector.

He said that the investment would come as part of China’s efforts to support the manufacturing transformation envisioned by Chief Adviser Prof Muhammad Yunus.

The visiting Exim Bank VP made the remarks during a meeting with the chief adviser at the State Guest House Jamuna in Dhaka on Thursday. She was accompanied by Dr Ma Jun, president of China’s state-run Institute of Finance and Sustainability.

Yang Dongning said that while China has long invested heavily in Bangladesh’s large infrastructure projects, its investors are now increasingly focused on key manufacturing sectors.

These include rooftop solar panels, pharmaceuticals and large-scale investments in Bangladesh’s “golden fibre,” jute – particularly for producing energy, bio-fertiliser and plastic alternatives.

She added that Chinese enterprises and the Exim Bank, which has previously financed major infrastructure initiatives in Bangladesh, are interested in funding these direct manufacturing investments as well.

Dr Ma Jun said that Bangladesh’s traditional jute industry is a major area of interest for Chinese investors, who are looking to establish joint ventures with Bangladeshi counterparts.

He said Chinese firms are prepared to use up to one million tonnes of jute to produce green energy, fertilisers and viable substitutes for plastics.

“There are opportunities for joint ventures in jute with Chinese financing,” Ma said.

The chief adviser welcomed China’s interest in Bangladesh’s manufacturing sectors, noting that investors from the world’s second-largest economy could help transform Bangladesh into a manufacturing hub producing goods for export to developed nations including China.

“We can go full speed in these areas,” Prof Yunus said, identifying pharmaceuticals and healthcare as additional sectors with strong potential for Chinese investment.

He noted that China, the world’s largest producer of solar energy, could play a significant role in supporting Bangladesh’s transition to green energy through investments in solar panels and rooftop solar systems.

The chief adviser also encouraged China to relocate manufacturing plants to Bangladesh, highlighting the potential utilisation of the country’s large pool of young workers. He suggested that closed state-run jute mills could be repurposed for new joint ventures.

“This is a very important dimension. We welcome this. We want to translate these into actions,” Prof Yunus said, referring to Chinese interest in jute-based manufacturing.

Yang Dongning added that Chinese companies are also exploring investments in AI and e-commerce, areas in which China has emerged as a global leader.

In response, the chief adviser invited Chinese firms to relocate factories to southeastern Bangladesh, which hosts the country’s largest seaports and offers strategic proximity to Myanmar, Thailand and other Southeast Asian markets.

“This part of the country has enormous access to the sea. Chinese industries could be relocated here – they can produce goods and export them to rich nations as well as to China,” he said.

Prof Yunus also urged Chinese infrastructure companies to build railway links connecting Bangladesh with southern China to facilitate exports from relocated manufacturing plants alongside regional connectivity.

At the start of the meeting, the chief adviser expressed deep condolences following the deaths of scores of people at a fire incident in an apartment block in Hong Kong.

Senior Secretary and SDG Coordinator Lamiya Morshed and Chinese Ambassador to Bangladesh Yao Wen were also present at the meeting.