Bangladesh's exports to China fell 26.79 per cent year-on-year in 2017-18. China has toughened certification regulations no longer accepts Bangladesh’s certification standards. So, Bangladeshi processed food exporters have to wait for days to receive certification from China, which is the main reason for the fall in exports.

Even in fiscal 2016-17, exports from Bangladesh to China had recorded a 17.48 per cent year-on-year increase. Moreover, the number of exportable items that Bangladesh has is low, although China has allowed duty-free access to 5,074 products from Bangladesh.

Bangladesh is a global leader in garment products but China does not allow duty-free import of all garments. As a result, exports of garments to China are also not increasing. Further China seeks high-end value-added items, something Bangladesh does not have a strong grasp on. China has also tightened visa regulations due to which, in most cases, small and medium company owners are being denied the scope to travel there.

Though China has a strong demand for jute, jute goods, leather and leather goods, Bangladeshi exporters lag behind due to their poor negotiation skills. Given the situation, Bangladesh is aiming for a free trade agreement with China. Currently, China is Bangladesh’s second largest export destination among Asian nations after Japan.