B Mirror Desk : The Bangladesh Export Processing Zones Authority (Bepza) reports that Chinese investment in Bangladesh’s economic zones is increasing, in part due to the competitive labor market and tariff rules enforced by the United States.

24 Chinese enterprises are among the 41 foreign companies that have signed leasing agreements to invest in Chattogram’s Mirsharai’s Bepza Economic Zone thus far.

With four Chinese enterprises now in production, their total pledged investment is $614.58 million. $867.22 million is the total amount of projected investment in Bepza EZ, including all international businesses. A robust pipeline of Chinese investments has also been revealed by Bepza.

Four Chinese firms have begun operations in the economic zone. Fengqun Composite Material Co (BD) Ltd has invested $2.2 million and focuses on manufacturing shoe accessories and packaging materials. In addition, Kaixi Lingerie Bangladesh Co Ltd, KPST Shoes (BD) Co Ltd, and Mingda (Bangladesh) New Material Co Ltd are also enhancing the zone’s production capabilities.

The total investment from these four companies amounts to $147.55 million.

Maj Gen Abul Kalam Mohammad Ziaur Rahman, the Executive Chairman of Bepza, pointed out that increasing production costs in China and the possibility of higher US tariffs on Chinese products are prompting companies to consider relocation.

“The policies implemented during Trump’s administration regarding China play a crucial role. If they face additional taxes, the prices of their products in the American market will rise significantly, putting them at a competitive disadvantage,” he explained.

He further noted that the shrinking workforce and rising wages in China are factors that make Bangladesh’s competitive labor market appealing to Chinese investors.

“To counter these challenges, some Chinese investors are exploring options to move their operations outside of China, with Bangladesh emerging as a preferred destination over countries like Vietnam, Cambodia, Indonesia, Sri Lanka, and Myanmar,” he added.