This is to certify that report on “Bangladesh China Bilateral Relationship”. Submitted for the

subject (International Business) of Bachelor of Business Administration from the United

International University Bangladesh, is a record of confide research carried out by the group

under my supervision.

I approve their report with full satisfaction and wish them a bright future.

…………………………….

Md.Abdul Hai, PhD

Professor

School Of Business and Economics

August 14, 2011

Mr. H R JOARDER

Assistant Professor

School Of Business

United International University

House # 80, Road # 8/A, Mirza Golam Hafiz Road,

Dhanmondi, Dhaka-1209, Bangladesh.

Subject: Submission of the Term Paper on “Food Adulteration”.

Dear Sir,

Enclosed is the paper entitled “Food Adulteration in Bangladesh”. This report discusses the

condition of foods of Bangladesh.

The majority of this report was obtained from our current course in Management. The remaining

paper contains related information about food of Bangladesh and how foods are adulterated. As a

student, this subject is of particular interest to us. This paper addresses that any potential process

of this paper.

Thank you for all of your consideration and assistance in putting this report together.

Sincerely Yours,

KUMAR BISHAWNATH ROY©

(On the behalf of Group Members)

PREFACE

As per decision of the “Management” course coordinator Mr. H R JOARDER, to make a paper

on the food condition of Bangladesh and adulteration of foods. It is a first attempt for making

this paper for this course. This paper serves good efforts for standard ways of learning and

knowing about Food Adulteration. The paper is written according to a student, containing

various parts; foods of Bangladesh, survey of food adulteration, research and articles of food

adulteration. The graphical representation presents the how our foods are contaminated. It is

hopefully believed that this paper will be a strong foundation to procure knowledge.

In any comprehensive work, like this, credit must go to the multitude of people. We are still

students and just novice. Hence, we have taken help from different people and websites for

preparing our report. Now here is a petite effort to show our deep graduate to those helpful

people.

First, we commit ourselves grateful to Allah for his unlimited kindness and maximum helpful

hand in continuing our report preparation. And we give thanks to those people whose survey help

us to prepare this report.

However, one may find a very few unintentional human errors and editing mistakes. Apart from

correction any useful suggestions for the improvement will be received with thanks.

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION

1.1. FOOD 13

1.2. FOOD SOURCE 13

1.2.1 PLANTS 14

1.2.2 ANIMALS 16

CHAPTER 2: FOOD ADULTERATION

2.1. FOOD ADULTERATION 19

2.2. HISTORY 19

2.3. COMMON ADULTERANTS FOOD 19

2.3.1 TEA 19

2.3.2 MILK 19

2.3.3 COFFEE POWDER 20

2.3.4 GHEE (CLARIFIED BUTTER) 20

2.3.5 FOOD GRAINS AND PULSES 20

2.3.6 EDIBLE OILS AND FATS 20

2.3.7 MUSTARD SEEDS 20

2.3.8 TURMERIC POWDER 20

2.3.9 ALCOHOLIC LIQUORS 21

2.3.10 FRUITS 21

2.4 IMPACT OF FOOD ADULTERATION 21

2.5 CHEMICALS FOR FOOD ADULTERATION 21

2.5.1 AGROCHEMICALS 21

2.5.2 ENVIRONMENTAL CONTAMINANTS 22

2.6 FOOD OF BANGLADESH 23

2.7 FOOD ADULTERATION IN BANGLADESH 23

2.8 USED CHEMICALS IN BANGLADESH 24

2.8.1 TOXIC 24

2.8.2 FORMALIN FORMALDEHYDE 24

2.9 SLOW POISONING CONTINUES UNABATED 25

CHAPTER 3: FOOD ADULTERATION ON HORTICULTURAL PRODUCTS

3.1. HORTICULTURAL PRODUCTS 35

3.2. PRODUCTION OF HORTICULTURAL PRODUCTS 36

3.3. USE OF CHEMICALS AND PRESTICIDES 37

CHAPTER 4: SURVEY OF BANGLADESH AGRICULTURAL RESEARCH INSTITUTE

4.1. INTROUCTION 41

4.2. STUDY AREA AND SAMPLE FARMERS 42

4.3. FINDINGS 43

4.4EFFECT OF USING CHEMICAL INPUTS FOR CULTIVATING

VEGETABLES AND BANANA45

4.4.1 FARMERS’ PERCEPTION 45

4.4.2 CONSUMERS' PERCEPTION 48

4.5 EFFECTS OF USING HORMONES 48

4.5.1 EFFECTS OF USING PGR AS PERCEIVED BY THE CONSUMERS 49

4.5.2EFFECT OF USING RA FOR BANANA MARKETING AS

PERCEIVED BY THE CONSUMERS50

4.5.3 HORMONES USED BY THE FARMERS AND WHOLESALERS 50

4.5.4 EFFECTS OF USING HORMONES 51

4.6 AREAS FOR FURTHER RESEARCH 52

4.7 CONCLUSIONS 53

4.8. KEY MESSAGES 55

CHAPTER 5: FOOD ADULTARATION ON FISH 55

CHAPTER 6: RESEARCH AND ARTICLES ON FORMALIN ON FISH

6.1. A RESEARCH ARTICLE 61

6.1.1 STUDY REVIEW 61

6.1.2. FISH SAMPLE COLLECTION 62

6.1.3 USING FORMALIN DETECTION KIT FOR FISH 63

6.1.4 RESULT AND DISCUSSION 63

6.1.5 CONCLUSION 64

6.2. ANOTHER STUDY 65

6.2.1 STUDY REVIEW 65

6.2.2 INTRODUCTION 66

6.2.3 MATERALS AND METHODS 67

6.2.4 DETERMINATION OF GEL FORMING ABILITY 69

6.2.5 RESULTS AND DISCUSSION 71

6.2.6 CONCLUSION 77

6.3 Formalin and Fish Trade in Bangladesh - Human and Environmental Risks 79

6.3.1 ABOUT THIS ARTICLE 79

6.3.2 THE STUDY 79

CHAPTER 7: REPORT OF DAILY STAR

7.1. COCONUT WASTE TURNS GHEE 84

7.2. ADULTERATED FOOD 86

CHAPTER 8: JOURNAL FROM THE STAR

8.1 COVER STORY 93

8.2 DURING THE RAMADAN 94

8.3 CHIPS, CANDY, ICE-CREAMS ETC 95

8.4 FRUITS 96

8.5 FISH 98

8.6 MILK 101

8.7 LAW 103

CHAPTER 9: OTHER REPORTS 107

CHAPTER 10: LAWS

10.1 FOOD 113

10.2 WATER 115

10.3 SANITATION 117

10.4 LAW OVERVIEW 119

10.5 NATIONAL FOOD POLICY, 2006, SECTION A- PREAMBLE 119

10.6 THE NATIONAL FOOD POLICY (NFP, 2006): OVERVIEW 120

10.6.1 FOOD AVAILABILITY AND SUPPLY STABILITY 120

10.6.2 PHYSICAL, SOCIAL AND ECONOMIC ACCESS TO FOOD 120

10.6.3 NUTRITION/UTILIZATION OF FOOD 121

10.7 FOOD ACT 2006 121

10.7.1 PURPOSES OF ACT 121

CHAPTER 11: STOP FOOD ADULTERATION

11.1 MASS CAMPAIGN TO STOP FOOD ADULTERATION 124

11.2 DEMANDS FROM THE CAMPAIGN 126

EXECUTIVE SUMMARY

Enclosed is the paper entitled “Food Adulteration in Bangladesh”. This report discusses the

condition of foods of Bangladesh. The remaining paper contains related information about food

of Bangladesh and how foods are adulterated. The paper is written according to a student,

containing various parts; foods of Bangladesh, survey of food adulteration, research and articles

of food adulteration. Food adulteration refers to the presence in food of harmful chemicals and

microorganisms which can cause consumer illness. Bangladeshi food refers to the Bengali

food prevalent in Bangladesh. Though Bangladesh is rich of food, food producers and marketers

mix food with some type of chemical like toxic, formalin, and many other industrial colors.

Toxic is used for ripping fruit; formalin is used for preserving fish, and industrial dyes are used

for looking food fresh and tasty. FOOD adulteration runs rampant in the country. Dangers lurk in

almost every item of food. Traders there can't sell contaminated food or tamper with food items.

Food adulteration in Bangladesh has assumed alarming proportions. Many fish sellers spray fish

with formalin, a chemical usually used for preservation of tissues. Food adulteration and food

adulteration of Bangladesh has also been increasing. Effect of using chemical inputs for

cultivating vegetables and banana were determined by computing consumers' perception on five

aspects like human disease, food toxicity, food taste, and food value and crop shelf-life. Fish is

an important food stuff and source of protein all over the world. To meet the domestic need

Bangladesh imports fish and fish products from neighboring countries. Use of formalin in food

for human consumption is also banned in Bangladesh. Use of formalin in food for human

consumption is also banned in Bangladesh. However, formalin contamination is reported to

occur in table fish marketed in the country. An increasing trend in Bangladeshi markets show

imported fish represents a significant source of fish supply within the fish trade business. The

traders may dip the whole fish or inject formalin in the fish body cavity or spread formalin mixed

water on the fish surface while the fish are displayed for purchase. New academic syllabus for

students ensuring awareness against food adulteration Food is needed to all for live. But in our

country there is no food without adulteration.

1.1. BACKGROUND OF THE STUDY

Employees or entrepreneurs want to improve his position in such a place which determines

himself as a successful person. So the course of International Business acts an important role for

an entrepreneur or an employee by improving the knowledge on the world map, trade, foreign

currencies and its exchange rates, and the trade relations between the countries as well as the

routes of trade. As a part of BBA program, our course teacher Mr. Abdul Hai assigned us to

prepare a report on the trade relation between Bangladesh and any other countries as well as

identification of major export goods and the route to increase exports rather than import to

China. We have selected our plan topic as “The Trade Relation between Bangladesh and China.”

We have made a analysis for required information in this area of the study. We have started our

work on August 02, 2015 which will be submitted on September 02, 2015.

1.2. RATIONAL OF THE STUDY

We are 4th year final trimester students. We will be going to job market and competing with other

universities’ graduates for getting a suitable job otherwise we have to go for a business. For

doing a job or business, we need to concern about the world trade how to make a business

relationship, as wellas foreign exchange rates and others. Going to prepare a report on our topic,

we acquire required knowledge about this type of relationship that helps us to perceive a

common picture on the trade relation between Bangladesh and China. So, we hope that this

project not only assure reasonable grade mark in our curriculum result but also assure well-done

feedback for near future entrepreneurs or employees.

1.3. OBJECTIVE OF THE STUDY

The report aims to show the bilateral trade relation between China and Bangladesh and suggest a

way to improve in export to China and find a easy way or route to export.

1.4. SCOPE OF THE STUDY

There is a certain boundary to cover this plan. Our particular plan covers the political,

economical, cultural dimension in the relation of Bangladesh and China. We mainly focus on the

political and economical dimension.

1.5. LIMITATIONS OF THE STUDY

We tried heart & soul to prepare a well-informed report. But unfortunately we faced some

difficulties when preparing this report. We tried to overcome the difficulties. In spite of trying

our level best, some difficulties that hamper our schedule report work. Within a short time, we

need to prepare some other courses’ reports for in this session. For this reason, we could not get a

fluent time schedule for the report.

1.6. METHODS

For making any report most of the data should be taken that reflect actual situation. For our

report we have collected various types of primary and secondary data. In a disciplined way we

can say that the report input were collected from two sources

1.6.1. PRIMARY SOURCES

We collect the data from the recent daily newspapers. Face to face conversation with a

businessperson who are in the business and share its own experience to establish some

suggestion.

1.6.2. SECONDARY SOURCES

Internet is the most favorable secondary source for students. We search in the website of

Bangladesh Bank, Dhaka Chambers of Commerce and Industries (DCCI), Metropolitan

Chambers of Commerce and Industries (MCCI) and other online newspapers.

1.7. PREVIEW

In the following pages, the report is prepared for the practical knowledge about bilateral

relations. First we draw an overall picture of trade between Bangladesh and China.Then, we try

to point out various analyses. Finally, we accumulate the findings, analyze them and give some

suggestions.

2.1. INTRODUCTION

The diplomatic relations between People's Republic of Bangladesh and the People's Republic

of China were established on October 1975, around five years after Bangladesh gained

independence. This year, the two countries are celebrating their 40 th anniversary of their

bilateral relationship. But if we look over the history, we found that, relations between two

countries include over two thousand years of cultural and political interactions. The present-day

Sino-Bangladesh relationship is characterized by close political, economic and military ties.

2.2. BILATERAL RELATIONSHIP BETWEEN BANGLADESH AND CHINA

Bangladesh has a strong bilateral trade relationship with China from the two thousand years ago.

But it has come in focus after the recognition of Bangladesh as an independent country and on

October 1975, the relationship has been established.On June 12, 2014, Bangladesh and China

have agreed to further expand and raise their partnership of cooperation to a newer height,

exploring more avenues and opportunities for cooperation. Sheikh Hasina paid the visit at the

invitation of her Chinese counterpart Li Keqiang. During her stay in Beijing, Sheikh Hasina met

Chinese President Xi Jinping and Chairman of the National Committee of the Chinese People's

Political Consultative Conference (CPPCC) Yu Zhengsheng. The two countries also inked two

agreements, two MoUs and two letters of exchange (LoE) during her visit to China opening up

new horizon to strengthen mutual cooperation in the areas of trade and investment, power

generation, communications and transport and combating natural disasters. In this context,

Bangladesh side proposed five projects for accelerating development which are:

1. Development of National Infra Network for Bangladesh Government Phase III

(Expanding IT connectivity up to Union Level: Info Sarkar Phase 3),

2. Rajshahi WASA Surface Water Treatment Plant Project,

3. Construction of 2nd Railway cum Road Bridge across the River Karnaphuli at Kalurghat

point near the existing railway bridge,

4. Construction of new single track dual gauge railway line from Chittagong to Cox's Bazar

via Ramu to Gundum near Bangladesh-Myanmar border, and

5. Eastern Refinery Unit-II and single point mooring (SPM) project.

2.3. DIMENSIONS OF BANGLADESH‐CHINA RELATIONSHIP

2.3.1. POLITICAL DIMENSION

Recently Chinese Commerce Minister Gao Hucheng visited Bangladesh on August 29 to discuss

bilateral trade and commerce. During his visit, the Chinese minister lead an 11-member

delegation at a meeting scheduled with Finance Minister AMA Muhith; also expressed the

Chinese intention to sign documents on some grant projects during the visit of their commerce

minister to Dhaka. China has urged the Bangladesh authorities to take necessary initiatives in

this regard. Earlier, China had also offered to sign a free-trade agreement with Bangladesh in a

bid to narrow the growing trade gap that remains heavily tilted in its favor.

2.3.2. ECONOMIC DIMENSION

Since 1975, bilateral economic and trade cooperation between China and Bangladesh have

significantly developed with the continuing growth in cooperation fields.We have collected the

information shown in the table – Trade Volume of Bangladesh with China; from the website of

Dhaka Chambers of Commerce and Industries (DCCI) and of Bangladesh Bank. We have

calculated trade deficit as well as the deficit growth ratio between the years.

Table-1:Trade Volume of Bangladesh with China (in millions of $)

YearExport

to ChinaImport

from ChinaTrade Ratio Trade Deficit

DeficitGrowth Rate (%)

1997-1998 48.51 592.46 1:12.21 543.95  1998-1999 10.61 560.47 1:52.82 549.86 1.091999-2000 10.56 568.06 1:53.79 557.5 1.392000-2001 11.67 708.94 1:60.75 697.27 25.072001-2002 18.92 657.78 1:34.77 638.86 -8.382002-2003 19.5 779.5 1:39.97 760 18.962003-2004 45.65 1132.72 1:24.81 1087.07 43.042004-2005 56.07 1643.77 1:29.32 1587.7 46.052005-2006 64.35 2078.99 1:32.31 2014.64 26.892006-2007 92.97 2572.62 1:27.67 2479.65 23.082007-2008 106.95 3136.7 1:29.33 3029.75 22.182008-2009 97.06 3451.47 1:35.56 3354.41 10.722009-2010 178.63 3819.28 1:21.38 3640.65 8.532010-2011 319.66 5912.55 1:18.50 5592.89 53.622011-2012 401.94 6433.21 1:16.01 6031.27 7.842012-2013 458.12 6324 1:13.80 5865.88 -2.742013-2014 746 7540 1:10.11 6794 15.82

If we analysis the data from 1997 to 2014 import is increasing rapidly. But there is little

movement in export to china; the trade deficit is also rising. If we go through the table and the

statistics, the trade deficit decreased up to 8.30% in 2001-2002 because of decreasing import

from US$708.94 million to US$657.78 million; there is also a decreasing of import in 2012-

2013. The trade deficit is in 2013-2014 is US$6794 million and the trade ratio in the year

1:10.11; Import is just ten times than the export. If we look over the export trend line, there is an

increasing rate from 2003-2004 and it is increased up to US$746 million in 2013-2014. The

export will be raised over the following years because the relation becomes stronger more than

the previous years.

1997-1998

1998-1999

1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

2013-20140

1000

2000

3000

4000

5000

6000

7000

8000

0

100

200

300

400

500

600

700

800

Chart-1: Import and Export Statistics

Import from ChinaExport to China

From this statistics, the highlighting points are found in 2008-2009, 2012-2013, and 2013-2014

because in these years, the export is raised rapidly. We hope that Bangladesh can export more

products in the following years.

MAJOR EXPORT ITEMS TO CHINA (IN MILLION US $)

From the exporting goods to China, we have shown here some goods which are exported to

China mainly. We have collected data from Bangladesh Bank economic section for three years

and calculated the growth rate between the years.

Commodity Group2011-2012 2012-2013 2013-2014 Growth Rate (%)Amount ($) (in millions)

Amount ($)(in millions)

Amount ($) (in millions)

2012-2013

2013-2014

Readymade Garments 59 90 157 52.54% 74.44%Fish, Shrimps and Prawns 6 10 13 66.67% 30.00%Jute Manufactures 48 50 71 4.17% 42.00%

Leather and Leather Manufacturer

29 59 164103.45% 177.97%

Raw Jute 57 34 25 -40.35% -26.47%Handicrafts 0 0 0 0 0Others 111 98 103 -11.71% 5.10%  310 341 533

From the commodities group, Bangladesh exports these seven types of goods more than others.

Last year, Bangladesh exported more readymade garments, jute manufactures, leather and leather

manufacturesthan the previous years.

2011-20120

20406080

100120140160180

Export to China

Readymade Garments Fish, Shrimps and Prawns

Jute Manufactures Leather and Leather Manufacturer

Raw Jute HandicraftsOthers

Amou

nts o

f Exp

ort

MAJOR IMPORT ITEM IN 2011-12 (IN MILLION US $)

Bangladesh started importing from China from the year of establishment of trade relationship

with China. Bangladesh imported defense materials, materials for garments industries, electrical

machineries, fertilizers, organic chemicals, iron and steel materials and other kinds of materials

for the industries. Moreover, China helps in building some bridges, roads, culverts.We have

collected data from Bangladesh Bank economic section for three years and calculated the growth

rate between the years. In this year, Bangladesh is importing the sticks for the Police Battalion.

Commodity Group2011-2012 2012-2013 2013-2014Amount ($) (in millions)

Amount ($)(in millions)

Amount ($) (in millions)

Cotton,(all types) cotton yarn/thread and cotton fabrics

1229.8 1409.6 1618.8

Nuclear reactors, Boilers, Machinery & mechanical appliances, parts thereof

1117.9 941.1 1161.4

Electrical machinery and equipment and parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers and

816.5 753.5 986.2

parts and accessories of such articlesMan-made staple fibers 415.4 417.0 401.6Knitted or crocheted fabrics 332.9 377.1 389.4Man-made filaments; strip and the like of man-made textile materials

214.8 231.7 286.0

Fertilizer 298 236.6 267.5Plastics and articles thereof 120 138.1 172.3Organic chemicals 129.2 125.1 161.0Iron and steel 118.1 128.8 146.8Others 1617.7 1549 1949.8

2.4. FUTURE PROGRESS OF THIS RELATION

Chinese Economic and Industrial Zone (CEIZ): Recently Chinese Commerce Minister

Gao Hucheng visited Bangladesh on August 29 to discuss bilateral trade and commerce.

During his visit; meanwhile; the Bangladesh Economic Zones Authority (BEZA) has

sought funding from the finance ministry to set up a special economic zone at Anwara

upazila in Chittagong to attract Chinese investment. The BEZA has recently sent a

proposal to the finance ministry seeking about Tk 420 crore interest free funds for

acquisition of land for the Chinese Economic and Industrial Zone (CEIZ). Earlier,

Bangladesh and China had signed a memorandum of understanding on ‘Establishment of

the Chinese Economic and Industrial Zone in Bangladesh’ during Bangladesh Prime

Minister Sheikh Hasina's visit to China in June last year.

Bangladesh-China-India-Myanmar (BCIM): As part of its "Southern Silk Route,"

China plans to establish a high speed railway link between Kunming and Kolkata through

Dhaka and Chittagong. According to reports reaching Dhaka from Kunming, the capital

city of China's southern Yunnan province, the proposal plans to boost the Bangladesh-

China-India-Myanmar (BCIM) multi-modal transport system. The project looks forward

to the newly established Asian Infrastructure Investment Bank (AIIB) and other funders

for financing it. The 2,800 kilometer rail route could be a critical component for the

BCIM that seeks cross-border movement of goods and people in the four countries. China

has pledged US$40bn for the Silk Route and $50bn for the AIIB. The BCIM area has a

trade potential of $132bn. Yunnan enjoys geographical proximity with GMS and BCIM

regions and is only 1000 kilometers away from Chittagong compared to 1700 kilometers

to the nearest Chinese port.

Bangladesh-China Friendship Exhibition Centre: Bangladesh is the world’s second

largest exporter of readymade garment products after China. Chinese Commerce Minister

Gao Hucheng informed Muhith of Beijing’s proposal after signing a letter of exchange on

‘Bangladesh-China Friendship Exhibition Centre’ on August 24, 2015 in Dhaka.

Beijing will give Dhaka Tk 6.757 billion in grants to construct the ‘Bangladesh-China

Friendship Exhibition Centre’ on the outskirts of the capital

2.5. FOREIGN DIRECT INVESTMENT BY CHINA

China is keenly interested to invest in the different sectors of Bangladesh. We are showing some

investment; present and future; below:

There are about 186 Chinese enterprises with a registered capital of US$320 million in

Bangladesh;

In terms of infrastructural development, China has already built six bridges in

Bangladesh;

Development of National Infra Network for Bangladesh Government Phase III

(Expanding IT connectivity up to Union Level: Info Sarkar Phase 3);

Rajshahi WASA Surface Water Treatment Plant Project,;

Construction of 2nd Railway cum Road Bridge across the River Karnaphuli at Kalurghat

point near the existing railway bridge;

Construction of new single track dual gauge railway line from Chittagong to Cox's Bazar

via Ramu to Gundum near Bangladesh-Myanmar border;

Eastern Refinery Unit-II and single point mooring (SPM) project;

Establish a high speed railway link between Kunming and Kolkata through Dhaka and

Chittagong;

Construction of a deep seaport in Chittagong, facilitating Chittagong‐Kunming road

connection through Myanmar as well;

Construct the ‘Bangladesh-China Friendship Exhibition Centre’;

Establishment of the ‘Chinese Economic and Industrial Zone (CEIZ)’ at Anwara upazila

in Chittagong in Bangladesh;

Establishment of a Digital Forensic Lab for information and communication technology,

as well as Digital Connectivity, Info connectivity – 3 for making Digital Bangladesh

within 2021.

On the other hand, efforts have also been made by the Chinese government to draw attention to

Bangladesh as a popular destination among the Chinese tourists. In addition, the national tourism

organization of Bangladesh and the private sector tour service providers have been establishing

business contacts with their Chinese counterparts. Over the years, they have also been actively

participating in different tourism and travel fairs, being held in China. Therefore, cooperation in

tourism sector also significantly contributing to the economy of both the countries.

2.6. MAJOR CHALLENGES OF BILATERAL RELATIONSHIP

The relationship has come with some opportunities as well as some threats. We tried to find out

some threats which are shown in below.

Massive Trade Gap: One of the key challenges facing Bangladesh‐China bilateral

relationship is the existing high volume of trade gap between these countries. Since the

very beginning of bilateral trade relationship, Bangladesh has long been suffering from

huge trade deficits with China. For example, in the FY 2013‐14, the trade gap between

these countries was estimated US$6794 million against the total bilateral trade of

US$8286 million.

India’s Troubled Northeast: India has long been concerned about the safety of Siliguri

corridor, which is around 200 km long and 40 km wide. The corridor is frequently

referred to as 'chicken neck' for India, as it functions as single link between the North‐east India and the rest of the country by rail, road and airways. The corridor borders with

Bangladesh on the one side and China on the other. Hence, Bangladesh‐China bilateral

ties constantly keep India concerned about any possible threat to the corridor.

Communications Barrier: Presently there are two direct air links (Dhaka-Kunming and

Dhaka-Guangzhou) between Bangladesh and China but no more direct air routes or land

routes is operated between both countries; and for this barrier, more people from both the

countries cannot visit each other’s’ easily.

Barrier in Language: The language barriers are one of the impediments to increase the

economic activities as desired. Though Bangladeshi people are learning Chinese

language at Dhaka as well as from main land China but the same response is not visible

where similar numbers of Chinese people are learning Bengali language.

Not Friendly VISA: Getting Chinese VISA is very difficult at the moment. Interested

visitors may get Chinese VISA only after fulfilling many requirements which is indeed

not tourist friendly. Many interested people of Bangladesh are unable to explore business

opportunities only because they are unable to visit China freely.

2.7. OPPORTUNITIES FOR THE BANGLADESH

We found a discussion named BANGLADESH-CHINA TRADE & INVESTMENT

CORRIDOR: Importance, Potential & Outlook; held in the office of The Daily Star; a

renowned newspaper; on 27 April 2015. In this discussion, the several points are noted and we

marked some notification of opportunities by which Bangladesh can expand its business

relationship not only with China but also globally. We have shown below some of the

opportunities which is found from the discussion.

Duty-Free Access for 17 Additional Products: Bangladesh is now getting duty free

access of 4,888 products to the Chinese market. Recently; on June10, 2014; Bangladesh

has sought duty-free access for 17 additional products to China, to reduce trade

imbalance between the two countries. The 17 products, which have been given duty free

access, include polymers, gloves, silk and silk waste, wiping cloth, leather footwear outer

soles, lead acid batteries and synthetic fiber. So, there is a chance to make a balance of

trade between the two countries.

A Strong Market for Exporting Goods: Comparing the GDP of the two countries, we

can described that China's GDP is growing at more than 7 percent, a big economy, While

Bangladesh’s GDP is growing at more than 6 percent, is a great opportunity for

Bangladesh. Bangladesh can gain from investing in the trade and investment corridor in a

planned way. China is the largest trading partner of Bangladesh, with total bilateral trade

volume coming to $8.287 billion in fiscal 2013-14. However, it is expected to grow to

more than $10 billion in this current fiscal year. Trade between Bangladesh and China is

12.63 percent of Bangladesh's total trade. Bangladesh enjoys duty benefits for over 4,700

products. Our key export items are garments, leather, raw jute and frozen food, of which

32.44 percent is leather and 32.35 percent garments. Garments, which account for 80

percent of our total exports, have the substantial potential to flourish in the Chinese

market. Bangladesh exports a large number of readymade garments to China than the

other products; and China is also investing US$350 million dollar in this sector.

Center for the Multinational Route: As part of its "Southern Silk Route," China plans

to establish a high speed railway link between Kunming and Kolkata through Dhaka and

Chittagong. There is also going to be a deep seaport in the Chittagong by the investment

of China. If it is so, we hope that Bangladesh can be a center for the international trade

to India, Myanmar, and China.

Getting More Foreign Direct Investment: Over the next five years, China is going to

invest US$500 billion in Chinese corporate houses in different countries and; China is

expected to import $10 trillion worth of products and export products worth $20 trillion;

and 400 million Chinese tourists will travel to various destinations. So, Bangladesh has

the opportunity in developing the industries as well as infrastructures, commerce,

agriculture, industry and energy are the main sectors in which the Chinese FDI can

come.

1

The projects which have scope for Chinese investment or technical assistance are:

The second crude oil refinery unit of Eastern Refinery Ltd in Chittagong,

Rail bridge over the Jamuna river and a high-speed “chord” train line between

Dhaka and Comilla,

Multi-lane tunnel under the Karnaphuli river, deep-sea port near Sonadia island,

Establishment of barrage in the Ganges system in Rajbari,

The garment village at Bausia in Munshiganj and so on.

1 http://www.thedailystar.net/business/export/china-raises-trade-hopes-77048

3.0 ANALYSIS AND RECOMMENDATION

We have analysis the data of export and we have measured the export of some specific products

for the next five years and provide some recommendation on this.

3.1. PROJECTIONS IN EXPORT

On the basis of the growth rate, we make a projection on the export of the some specific products

to China by which the massive trade gap can be lower.

Projection of Export

Commodities Group 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019Readymade Garments 203.19 262.97 340.34 440.47 570.06

Jute Manufactures 134.96 256.52 47.6 926.83 1761.71

Leather and Leather Manufacturer

232.67 330.09 468.31 664.40 942.60

Total 570.82 849.58 856.25 2031.70 3274.37

2014-2015

2015-2016

2016-2017

2017-2018

2018-2019

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

Projected Export

Leather and Leather ManufacturerJute ManufacturesReadymade Garments

3.2. POLICY RECOMMENDATIONS

From this above study, bunches of course of action are to be suggested for Bangladesh in order

to further strengthen their bilateral relationship.

From Bangladesh's side, the following steps can be taken:

3.2.1. General Course of Action:

Bangladesh faces a huge trade gap with China. Therefore, in order to reduce trade

imbalance, the Government of Bangladesh needs to take initiatives for direct

communication with the Chinese business community to expand its export volume to

China and remove its structural problems as the Chinese market is quite diversified and

competitive.

The measures in terms of improving the communications may be placed the highest

importance so that peoples to people’s contacts between Bangladesh and China are

increased continuously. Presently there are two direct air links (Dhaka-Kunming and

Dhaka-Guangzhou) between Bangladesh and China but more direct air and land routes

may also be operated between both countries so that more and more people from both the

countries may visit each other’s’ easily.

Promoting each other’s language in both the countries should be encouraged by the

government machineries as well as private sectors of both the countries. The language

barriers are one of the impediments to increase the economic activities as desired.

Getting Chinese VISA is very difficult at the moment. Interested visitors may get

Chinese VISA only after fulfilling many requirements which is indeed not tourist

friendly. The applicant must obtain invitation from local Chinese authorities of mainland

China to apply for VISA. If it is found easier, it will be better for both countries.

3.2.2. Course of Action to Increase Export:

As China is investing in building a special economic zone for Chinese investors in

Chittagong; it will be useful to improve our gaps in power, infrastructure and port

facility.

As China is investing $350 million in Bangladesh’s apparel sector and Bangladesh is the

second largest garments industry after China, Bangladesh can increase the export of

garments in China.

Bangladesh can try to produce products which are duty free in exporting to China.

3.2.3. Suggested Way for Export:

As route, we will introduce on the following basis:

o Dinajpur, Bangladesh to Rikaze, China: Through the Silliguri Corridor, India

and the Kathmandu, Nepal which is around 1220 kilometer. It will take about 1

day and 1 hour From Dinajpur and it will take US$111.43 for one way by land;

Through the Jalpaiguri India, and the Thimphu, Bhutan which is around 845

kilometer. It will take about 20 hours 23 minutes From Dinajpur and it will take

US$80.47 for one way by land.

o Chittagong, Bangladesh to Pu’er China: Through the Mandalay, Myanmar; it is

around 2,159 kilometer and will take 1 day 19 hours from Chittagong. It will take

US$244.58 for one way by land. By airways, it is around 941 kilometers and it

will take 1 hour 40 minutes.

By the Airways By the Land

4. CONCLUSION

By this study, we can identify the relation of over 35 years. China is going to be a largest market

on selling readymade garments for Bangladesh. If the route given is built up through Myanmar,

or Bhutan or Nepal, Bangladesh can take the opportunity of exporting Readymade Garments,

Jute Manufactures, and Leather and Leather Manufacturer as well as other items in Myanmar or

Bhutan or Nepal also. As we will celebrate the 40th anniversary of the establishment of

diplomatic relations between China and Bangladesh nearly, a review of present relation will fill

us with confidence and new expectations to the future of our bilateral relations. Let's hope that

the two great nations of China and Bangladesh will join hands and march forward in constructing

the new road.

5. REFERENCE:

1. http://bd.china-embassy.org/eng/zmgx/gxgk/t823712.htm

2. http://www.bdcomcn.com/English-Articles/key-supportive-measures-to-promote-

bangladesh-china-economic-and-trade-relations.html

3. https://en.wikipedia.org/wiki/Bangladesh%E2%80%93China_relations

4. “Chinese minister to visit Dhaka August 29” 16 August,

2015;http://www.theindependentbd.com/printversion/details/11793

5. BANGLADESH-CHINA JOINT STATEMENT;  June 12, 2014;

http://www.thedailystar.net/bangladesh-china-joint-statement-28234

6. http://www.dhakatribune.com/tags/bangladesh-china%20relationship

a. http://www.dhakatribune.com/foreign-affairs/2015/aug/26/chinese-presidents-

visit-likely-october

b. http://www.dhakatribune.com/bangladesh/2015/jun/19/bangladesh-china-be-

connected-high-speed-train

c. http://www.dhakatribune.com/bangladesh/2015/may/06/chinese-pm-visit-dhaka-

september

d. http://www.dhakatribune.com/business/2015/jun/17/167m-chinese-loan-sought-

implement-ict-vision-2021

e. http://www.dhakatribune.com/business/2015/jan/20/bangladesh-china-power-

company-okayed