Beijing Hears Bangladesh's Pitch for Chinese Banks
Bangladesh used a Beijing event to urge China's largest lenders to consider opening branches in Dhaka, as trade between the two countries nears $19 billion a year.
Reading
In a Nutshell
- China Exim Bank and Invest Bangladesh held "Bangladesh Day" at the bank's Beijing headquarters on 20 October.
- Eleven Chinese financial institutions took part, including the Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of China, along with 26 Chinese companies.
- Bangladesh Bank and Invest Bangladesh said trade with China reached $19 billion in FY2025, yet no Chinese bank operates locally in Bangladesh.
- The organisers presented the Chinese Economic and Industrial Zone and the Mongla Economic Zone as investment options.
- China Exim Bank Vice President Wang Kang said the bank has nearly 40 projects in Bangladesh and will encourage more Chinese investment in sectors such as textiles and healthcare.
- The organisers have not announced any bank's decision to enter Bangladesh, nor any licence details or timeline.
Context
Bangladesh imported $18.19 billion in goods from China in FY2025, accounting for about 27% of its total import bill, according to Bangladesh Bank data. Exports to China were $694.49 million. Since 2022, the Bangladesh Bank has allowed trade payments in Chinese yuan. In September, the Bangladesh-China Chamber of Commerce and Industry asked the government to facilitate a Chinese bank branch in Bangladesh.
Why It Matters
Bangladesh's trade with China is heavily one-sided. The commerce minister told parliament that imports from China were $18.56 billion in FY25, against exports of $694.49 million, resulting in a deficit of $17.87 billion. A Chinese lender operating locally could make trade finance and yuan settlement easier for importers and Chinese investors, although that is an analysis rather than a stated outcome.
Chinese banks would gain a foothold in a large import market, while Bangladesh would gain another source of finance for trade and investment. The timing is notable because the chamber of commerce made a similar request to the government in September. The pitch is now with Chinese lenders, and the organisers have not announced any commitment or timeline.
What We Think
This looks like a practical step to make trade easier. China supplies about 27% of Bangladesh's imports, so a Chinese bank on the ground could make payments, trade finance, and yuan settlement simpler for businesses.
Bangladesh Bank has allowed yuan settlement since 2022, so some of the groundwork is already in place.
The next conversation is about the terms. Dhaka can discuss licence conditions and how a Chinese branch sits alongside the banks it already works with. If the talks also help Bangladeshi exporters, who sold $694.49 million worth of goods to China in FY25, both sides stand to gain.