China pledges $2.1 billion in loans, investments for Bangladesh

China has pledged $2.1 billion in loans, grants, and investments to Bangladesh.

The commitments were announced by Yao Wen, Chinese ambassador to Dhaka and Bangladeshi officials on Friday, as Chief Advisor Muhammad Yunus marks his first bilateral trip to China.

According to Bangladesh Sangbad Sangstha (BSS), the state-run news agency, the pledges include $1 billion in investments from 30 Chinese companies, which plan to develop special industrial economic zones in Bangladesh.

Chinese Envoy Wen, speaking alongside Bangladeshi officials, described the visit as “a milestone” in bilateral relations.

The investments align with Dhaka’s ongoing efforts to attract foreign capital into its manufacturing sector.

Beijing has earmarked approximately $400 million in loans to modernise Mongla Port, $350 million for the industrial economic zone, and $150 million in technical assistance.

The remainder of the financial package will be provided through grants and additional loans.

Bangladesh Investment Development Authority (BIDA) Chairman Ashik Chowdhury expressed optimism about the visit’s long-term impact, saying it could propel a “surge” of Chinese investment.

During a meeting with Chinese President Xi Jinping, Yunus urged Beijing to encourage private-sector investment in Bangladesh.

In response, Xi promised China would promote the relocation of its manufacturing operations to Bangladesh, according to Ashik.

“This visit will play a big part in persuading many Chinese companies to invest in Bangladesh,” he said.

“It is only a matter of time.”

Yunus and Ashik met representatives from more than 100 organisations in Beijing, including some of China’s largest corporations, to discuss investment opportunities in key sectors such as advanced textiles, pharmaceuticals, light engineering, and renewable energy.

“So far, the response is very positive,” Ashik said after three interactive sessions with business leaders.