China's latest move to allow duty-free access presents an opportunity for Bangladesh to export $25 billion worth of garment items, say experts. Bangladesh's exports to China are likely to grow to $25 billion if local suppliers grab an additional 1 per cent share of the Chinese apparel market of $350 billion. Currently, the country's share of exports to the Chinese market is 0.05 per cent, which is equivalent to a bit above $1 billion.

Despite Bangladesh's overall export earnings from China increasing by 9.81 per cent year-on-year to $426.14 million in the last seven months, apparel shipments to the East Asian nation declined 19.66 per cent to $131.20 million in the July-January period of the current fiscal year. Knitwear exports declined 30.77 per cent to $53.53 million while shipments of woven products declined by 10.36 per cent to $77.68 million, as per Export Promotion Bureau.

The Chinese government is encouraging the production of their own garment items, which negatively impacted Bangladesh's exports, says, Faruque Hassan, President, BGMEA. He hopes exports to China will grow with easing of coronavirus restrictions. Azizul Akil David, Senior Vice-President, Bangladesh China Chamber of Commerce and Industry says, Bangladesh should not target Chinese markets for garment shipments as China itself is the world's largest apparel producer.

MA Razzaque, Research Director, Policy Research Institute, adds, a major reason behind the decreased garment exports to China is the rising demand for locally made apparel items in the EU and the US. Bangladesh's current production capacity is mainly tailored for European and US markets, Razzaque adds.