The New Nation - Internet Edition

UNB, Dhaka

Chinese importers will sign several contracts today to import Bangladeshi products worth US$ 80 million to reduce huge trade imbalance against Dhaka.

The Chinese entrepreneurs will buy jute and jute-goods, marine products and leather from their Bangladeshi counterparts under the deals.

"Although it is not big but reflects our sincerity and willingness to address Bangladesh's concern about the trade gap," leader of a visiting Chinese Trade and Commerce delegation Liang Wentao told UNB yesterday evening.

Wentao, who is leading a 20-member delegation comprising representatives of eight companies, said China does not want trade imbalance with other countries. "But we can't to wipe out the deficit-we want to address it sincerely."

Current trade imbalance between the two countries comes to a staggering figure of around $3 billion, as China's comparatively cheap products have a big marker in Bangladesh.

Wentao, Deputy Direct General of the Asian Affairs Department of the Chinese Ministry of Commerce, said the issue of trade deficit is a headache for different countries caused by different structures of economies of different countries.

He, however, said bilateral trade between Dhaka and Beijing has been on the rise as last year trade stood at $ 4.4 billion, an increase of 30 percent over the previous year.

In reply to a question, Wentao said Bangladesh could be an attractive destination for Chinese textile industries which are being shut down or going out of China.

"We're always telling our entrepreneurs to come to Bangladesh and invest here," he said.

Asked about lowering tariffs to enable more access of Bangladeshi products to the Chinese market, Wentao said basically lowering tariffs or duty does not help much, but still China bilaterally as well as under the Asia-Pacific Trade Agreement provided duty-free access to a good number of Bangladeshi export items.

Replying to a question, the delegation leader said both China and Bangladesh are strong in the garment sector, but they are in conflict as China has diversified its garment products.

Expressing confidence about improving bilateral trade and economic cooperation, he hoped that Bangladesh would be able to improve its domestic economy and diversify its export basket.

Wentao, who is now on a tri-nation tour of India, Bangladesh and Sri Lanka, said the Chinese government is ready to extend any financial and technical cooperation in infrastructure building or development of any industry like jute in Bangladesh if initiatives come either from the Bangladesh government or entrepreneurs.

He last visited Dhaka a decade ago, and was now impressed to see the development that took place here. He praised the micro-credit innovation by Nobel laureate Prof Mohammad Yunus to alleviate poverty.