Bangladesh Seeks Broader Trade, Investment Ties With China’s Yunnan
Bangladesh has proposed expanding trade, investment and transport links with China’s Yunnan Province, including a road connecting Chattogram to Kunming through Myanmar. The initiative comes as Dhaka expands Chinese investment and market access while pursuing US investment and protecting access to its largest export market in the European Union.
Reading
In a Nutshell:
- Commerce Minister Khandakar Abdul Muktadir proposed a 1,200km road through Myanmar to Kunming, which he said could carry goods between the regions in around 24 hours.
- Bangladesh and Yunnan recorded more than 1.3 billion yuan in bilateral trade in 2025, while Yunnan prepares bonded warehouses, customs facilities and an exhibition centre for Bangladeshi products.
- The two sides discussed cargo flights, exports of jute, leather and frozen fish, imports of fertiliser and animal feed, and joint research to improve jute productivity.
- Bangladesh is also seeking US investment in sectors including energy, infrastructure and technology, while pursuing an EU Free Trade Agreement ahead of LDC graduation.
Context
The Yunnan proposals build on Tarique Rahman’s June visit to China, where 12 Chinese companies proposed $9.21 billion in investments across sectors including waste to energy, gas exploration and the Mongla Port economic zone. China has also expressed support for the proposed China Myanmar Bangladesh Economic Corridor. The US track is expanding alongside this. During Tarique’s UNGA visit to New York this September, he invited American companies to invest in energy, infrastructure, manufacturing and technology. Biman has also signed agreements for 25 Boeing aircraft this year, 14 in April and 11 in September, while separately considering 10 Airbus aircraft. Investment opportunities with the EU are also being pursued simultaneously given that it is Bangladesh’s largest export market. Ahead of LDC graduation, Dhaka is pursuing an FTA ahead while working through 61 non tariff barriers identified by the bloc, 48 of which Bangladesh says it has addressed.
Why It Matters
Yunnan could give Bangladeshi exporters a more direct route into southwestern China through trade facilities, cargo links and eventually the proposed road from Chattogram. That complements Chinese investment, while US engagement is bringing capital and commercial partnerships and the EU negotiations focus on maintaining access to Bangladesh’s largest export market. The Boeing and Airbus deals show how Bangladesh is balancing commercial ties with both the US and Europe.
What We Think
The Yunnan initiative fits a broader economic strategy in which Bangladesh is trying to expand trade and investment links with China while maintaining strong commercial ties with the US and EU. The three relationships serve different purposes, which gives Bangladesh more than one route for investment and market access.