How much does China invest in Bangladesh?

China has emerged as one of the largest sources of foreign direct investment (FDI) in Bangladesh, reflecting deepening economic ties and shifting global supply chains.

According to the annual report of the Bangladesh Investment Development Authority (Bida), China ranked second, after Saudi Arabia, in terms of private FDI inflows between 2019 and 2024. During this period, mainland China invested $4.38 billion, while Hong Kong contributed $173 million.

In 2025, three Chinese companies committed a total of $322 million in investments in Bangladesh’s textiles, apparel, and manufacturing sectors. Of this, Hong Kong-based Honda Industries pledged $250 million, Kiaxi Group pledged $40 million, and China Lesso Group pledged $32.77 million.

The total FDI stock from China, including Hong Kong, in Bangladesh reached $2.67 billion as of September 2024. At the end of the fiscal 2024-25, the total FDI stock in Bangladesh stood at $18.95 billion, of which Chinese FDI accounted for 8.44%.

To further boost inflows, Bida is planning to open its first overseas office in China within six months. The initiative is aimed at capturing a share of shifting Chinese investment flows and addressing long-standing investor bottlenecks at source.

The move – part of a 180-day reform drive under Tarique Rahman – comes as Bangladesh positions itself to benefit from rising labour costs in China, tariff tensions with the United States, and a broader realignment of global supply chains.

Bida officials said the proposed office will recruit Chinese nationals to engage investors directly, resolve queries in real time, and coordinate with its Dhaka headquarters under the Prime Minister’s Office. The proposal has already been submitted for approval.

“This will allow us to respond faster to investor concerns and improve Bangladesh’s visibility in China,” said Bida Executive Chairman Chowdhury Ashik Mahmud Bin Harun, adding that the office is expected to be operational within six months.

While officials say Chinese firms have shown growing interest, Bida stopped short of projecting inflows. “It is not possible to quantify the increase at this stage,” Ashik said.

Bida has identified 13 priority areas in the infrastructure sector, with the implementation of the Chinese Economic Zone project in Anwara, Chattogram, placed at the top of the list. Bida expects that the successful execution of this project will lead to a significant surge in Chinese investment in the country.