Bangladesh has secured a commitment of $2.1 billion in investments, loans and grants from China during Chief Adviser Professor Muhammad Yunus’s visit, which officials described as a ‘milestone’ in bilateral economic cooperation.

According to Bangladeshi officials and Chinese Ambassador to Dhaka Yao Wen, nearly 30 Chinese companies have pledged to invest $1 billion in the exclusive Chinese Industrial Economic Zone in Bangladesh. The commitment follows Professor Yunus’s call for greater private sector investment in the country’s manufacturing sector.

China has also pledged $400 million for the modernisation of Mongla Port, $350 million for the development of the China Industrial Economic Zone, and $150 million in technical assistance.

The remaining funds will be provided as grants and other forms of financing.

Officials expressed optimism that the investments would enhance Bangladesh’s manufacturing capacity and trade competitiveness.

‘It is a milestone visit,’ Chinese envoy Yao Wen said, referring to the Chief Adviser’s four-day-long first bilateral tour to China.

Ashik Chowdhury, the Executive Chairman of the Bangladesh Investment Development Authority and Bangladesh Economic Zone Authority, said the visit could propel a ‘surge’ of Chinese investment to Bangladesh.

During the bilateral meeting, Professor Yunus has requested President Xi Jinping to give his ‘green signal’ to Chinese private companies to invest in Bangladesh.

President Xi affirmed that he would encourage Chinese firms to relocate their manufacturing plants to Bangladesh as they look to diversify their production destination, said Chowdhury.

‘This visit will play a big part in persuading many Chinese companies to invest in Bangladesh. It is just a matter of time,’ he said.

On Friday, Professor Yunus and Ashik Chowdhury briefed officials of more than 100 Chinese companies, including some of the biggest in the world, to invest in manufacturing in Bangladesh, especially in advanced textiles, pharmaceuticals, light engineering and renewables.

They spoke in three interactive sessions in Beijing.