Chinese investors have emerged as the principal drivers of new industrial investments in Bangladesh's Export Processing Zones (EPZs).

Chinese-owned and joint-venture companies accounted for nearly two-thirds of the investment commitments secured by the Bangladesh Export Processing Zones Authority (Bepza) in the fiscal 2025-26.

Bepza signed land lease agreements with 36 companies during the fiscal year, securing proposed investments worth $717.71 million, according to official figures. Of those companies, 23 are either wholly Chinese-owned or Chinese joint ventures, representing $498.86 million in proposed investments.

The surge marks a significant shift in the profile of Chinese investment in Bangladesh. Traditionally concentrated in the ready-made garment industry, Chinese companies are increasingly moving into higher value-added manufacturing sectors, including drones, semiconductors, electronics, medical devices, logistics, copper products, and automated hydroponic systems.

Among the 23 Chinese-linked firms, 18 are wholly Chinese-owned, including investors from Hong Kong, with a combined investment of $382.57 million. The remaining companies comprise one China-British Virgin Islands joint venture, two China-Singapore joint ventures and one Samoa-China (Taiwan) joint venture.

ASM Anwar Parvez, executive director for public relations at Bepza, said Chinese investment is no longer confined to the apparel sector.

"Chinese investors are now entering high-value-added manufacturing sectors such as drones, electronics, footwear, packaging materials, copper products and hydroponics," he told The Business Standard.

According to him, Bepza's investment seminars, business meetings and one-to-one engagement programmes in China over the past several years have increased awareness of Bangladesh's EPZs among potential investors.

Parvez said existing Chinese investors' positive experiences with Bepza's services, infrastructure and investment environment had also encouraged fresh investment.

"Our investors are our biggest ambassadors. In many cases, their suppliers, business partners and affiliated companies are now considering investments in Bangladesh through investor referrals," he said.

He added that Bangladesh's investment-friendly policies, competitive labour force and changing global supply chain dynamics had enhanced the country's appeal to Chinese manufacturers seeking to diversify their production bases.

Fresh momentum after PM's China visit

The investment drive gained momentum following Prime Minister Tarique Rahman's visit to China from 22 to 26 June, during which several investment-related agreements were signed.

On 25 June, the Bangladesh Economic Zones Authority (Beza) signed a memorandum of understanding with China Civil Engineering Construction Corporation to develop the China–Bangladesh Mongla Port Economic Zone on 110 acres of land adjacent to Mongla Port in Bagerhat.

Beza also exchanged a developer agreement with China Road and Bridge Corporation for the development of the Chinese Economic and Industrial Zone in Chattogram's Anwara.

Separately, the Bangladesh Investment Development Authority (Bida) signed a memorandum of understanding with the China Council for the Promotion of International Trade to strengthen business cooperation, facilitate Chinese investment and improve investor services.

Meanwhile, provisional land allocation has been completed for Handa Industries Ltd at the Keraniganj Economic Zone. The company plans to invest $220 million in its second factory in Bangladesh, a project expected to create around 13,000 jobs.

Billions in proposals under review

Following meetings between the prime minister and senior executives of major Chinese companies in Beijing, 12 firms proposed investments worth $9.21 billion across the energy, infrastructure, logistics, manufacturing and education sectors.

Ashik Chowdhury, executive chairman of Bida and Beza, said the government's immediate priority is to convert the proposals into actual investments.

"We cannot guarantee that the entire $9.21 billion will materialise. However, we are trying our best to convert as much of this investment interest as possible into real projects," he said.

"Our strategy has two equally important components – building a strong investment pipeline while simultaneously converting the existing pipeline into actual investments."

To support the process, Bida plans to establish an office in China and is working with major Chinese institutions to facilitate implementation.

Referring to Handa Industries' investment, Ashik said the project represented a firm commitment rather than a preliminary expression of interest.

"This is a hard commitment. The company is already operating in Bangladesh, and the land allocation process for its Keraniganj project is progressing. This is a confirmed investment," he said.

He added that Beza expected to hold the ground-breaking ceremony for the Chinese Economic and Industrial Zone in Anwara later this month.

Chinese firms eye Bangladesh expansion

Chinese Ambassador Yao Wen said the prime minister's visit has significantly boosted Chinese companies' confidence in Bangladesh.

Briefing journalists after the visit, the ambassador said the long-delayed Chinese Economic and Industrial Zone in Anwara had made substantial progress, with nearly all documentation completed within four months of the new government taking office.

According to Yao, more than 30 Chinese companies have already committed around $500 million in investment in the zone.

He said the prime minister's meetings with leading Chinese companies in Beijing and Dalian have generated considerable interest and that progress on the Anwara project had sent a strong signal that Bangladesh remained an attractive destination for Chinese investment.

The ambassador described the investment response from Chinese companies as one of the most significant outcomes of the visit.

According to Beza, the Chinese Economic and Industrial Zone is being developed on approximately 800 acres in Anwara under a government-to-government initiative.

Priority sectors and investor support

Bida has identified electronics, semiconductors, electric vehicle batteries, advanced textiles, technical textiles, logistics, medical devices and IT-enabled services as priority sectors for Chinese investment.

Nahian Rahman Rochi, executive member and head of business development at Bida, said Chinese companies had maintained a strong interest in Bangladesh in recent years, although government-level engagement remained critical to investment decisions.

"Chinese investors place significant importance on strong government-to-government relations and policy certainty when entering a new market. The prime minister's recent visit has strengthened that confidence," he said.

"We confirmed progress on the Chinese Economic and Industrial Zone in Anwara, laid the foundation for developing a second economic zone in Mongla and signed a cooperation agreement with CCPIT, China's largest state-backed investment promotion organisation. These developments will further strengthen Chinese investors' confidence in Bangladesh."

Rochi said Bida aimed to establish its China office within the next three months. He also disclosed that an additional $340 million in Chinese investment proposals remained in the conversion pipeline.

Officials believe that, if the proposed investments, commitments and lease agreements are gradually translated into operational projects, Chinese capital could become a major driver of Bangladesh's next phase of export-oriented industrial growth.

In response to growing Chinese interest, Bida has established a dedicated support framework for investors from China, including plans for an office in Ganzhou, stronger business-to-government coordination mechanisms and a specialised relationship management team.

The authority has also launched a China Desk to provide end-to-end assistance and introduced a Chinese-language investment portal offering sector-specific guidelines and information for prospective investors.