Special Correspondent :
Bangladesh’s trade with China may suffer setback if the Wuhan coronavirus lockdown prolongs, said economists and business leaders.
China is the largest trading partner of Bangladesh and major source of import for local companies.
The bilateral trade between Bangladesh and China stands at $18.7 billion at present though it tilts heavily in favour of Beijing.
“Seventeen cities in China are in lockdown and it hampers the movements of goods, disrupting the supply chain. The scale of impact on Sino-Bnagla trade would depend how long the disruption continues,” Dr Zahid Hussain, former lead Economist at World Bank’s Dhaka office told The New Nation.
“A long lockdown will not only reduce the two-way trade between Dhaka and Beijing, but also will hit production in local industries when they are highly dependent on Chinese industrial raw materials to produce value added goods,” he warned.
When asked, Dr Zahid Hussain, said, “The impact will be severe on local apparel industry that heavily depends on imported raw materials and inputs from China. Besides, many local companies and electronic gadget manufacturers companies import a wide-range of component, consumer goods and commodities
from China may also hit from the China lockdown, he added.
Dr Zahid Hussain also mentioned that the virus outbreak has already left severe economic and psychological scar on parts of China and its major trade partners. Businessmen around the world have postponed their regular visit to China and this can significantly impact on the international trade and global economy as well.
“We are concerned over the supply chain disruption in China. Our factory production could take a big hit unless the situation in China improves in the next few weeks,” M A Rahim, Vice-President of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) told The New Nation.
He, however said, that local garment industries are yet to feel the pinch of manufacturing shutdown and supply chain disruption in China as they maintain an inventory for three months. “Though it is too early to measure fully, the impact of coronavirus will be significant on Chinese and global supply chains. If the virus was not contained, it could hurt Bangladesh’s export-import business with China and output in local factories,” Dr Ahsan Mansur, Executive Director of Policy Research Institute told The New Nation.
He said Bangladeshi businessmen have postponed their regular visit to China due to fear of coronavirus, raising fair of a potential slowdown in Dhaka-Beijing bilateral trade.
“Local apparel industry is highly dependent on Chinese raw materials. Delay in their supply, production in factories can be disrupted. It will lead to further fall in apparel shipments coinciding with an already slowing export from the sector,” he added. The exports of ready-made garments from Bangladesh fell 7.74 per cent during the first half of this fiscal year.
