“They will invest in Bangladesh very soon,” Chinese Ambassador to Bangladesh Yao Wen said about Chinese solar panel manufacturers. Wen was visiting Bangladesh’s Chief Adviser, Muhammad Yunus, who has urged Chinese companies to relocate manufacturing plans to Bangladesh as the new government seeks to spur economic growth.
The world’s largest solar panel manufacturer, Chinese operator Longi, will establish an office in Bangladesh and invest in production in the country, Wen added. He said top Chinese solar manufacturers visited Bangladesh in December to explore investment opportunities.
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Wen noted that since Sheik Hasina’s removal in August, Chinese businesses have become the largest foreign investors in Bangladesh. He also highlighted Yunus’ upcoming visit to China (his first foreign visit as chief adviser) as the most significant in the countries’ 50-year relationship, marking them as “trustworthy and close friends”.
Yunus welcomed the announcements as his government seeks to spur economic growth and stability after the raucous change in government last summer. He encouraged Chinese investors to also look at the healthcare sector.
“Bangladesh needs massive investment in healthcare. Chinese hospital chains now have a unique opportunity to build hospitals here,” he added.
Last summer, Bangladesh’s former authoritarian ruler, Sheikh Hasina, fled the country following the eruption of student protests that evolved into a national movement to oust her. The events led to some instability for foreign companies, particularly those in the textile sector. At the time, some companies changed shipment orders to manufacturing plants in surrounding countries.
However, the establishment of interim leader Muhammad Yunus, a widely respected figure in the country, has allowed for a relatively stable transition of power. Yunus is well-recognised on the international stage for pioneering the use of microfinance to combat poverty, for which he won a Nobel Peace Prize in 2006.
Under Hasina’s rule, Bangladesh’s relationship with India flourished. She is currently exiled in India, which has created disputes with Bangladesh’s new government, particularly after it officially filed for her extradition in February. Analysts say that China is keen to fill this vacuum, which may explain the charm offensive with Yunus.
In terms of drawing in foreign investment, Bangladesh is focused on making it a smoother process. It is currently working on merging its five regional investment promotion agencies into one centre that will help streamline foreign direct investment.
The move comes after investors highlighted that having so many organisations was an obstacle to doing business in the country.
