Bangladesh, China launch Chinese Economic and Industrial Zone in Chattogram

Bangladesh and China launched construction of the long-delayed Chinese Economic and Industrial Zone (CEIZ) on Monday, a joint venture near the port city of Chattogram expected to draw investment and create tens of thousands of jobs. The project, first agreed more than a decade ago, marks a renewed push by Dhaka to boost industrial production and foreign investment.

What is the Chinese Economic and Industrial Zone?

The Chinese Economic and Industrial Zone (CEIZ) is an 800-acre (324-hectare) industrial park being developed jointly by Bangladesh and China near Chattogram. Officials from both countries inaugurated construction on Monday, more than a decade after it was first agreed in a 2014 memorandum of understanding between the two governments.

The launch comes as Bangladesh seeks to boost foreign investment and expand industrial production. It also comes as Beijing deepens its economic footprint in South Asia through large infrastructure projects.

How much investment is the zone expected to attract?

Bangladesh's Finance and Planning Minister Amir Khasru Mahmud Chowdhury said the zone would support the country's ambition of becoming a trillion-dollar economy by 2034. "We are expecting strategic investments in areas such as high-tech chips, medical equipment and manufacturing," he said.

China's ambassador to Bangladesh, Yao Wen, described the CEIZ as a flagship project. He said delegations from more than 100 Chinese companies had already visited the site, and the zone had already attracted approximately $500 million in potential investment.

How many jobs will the project create?

Yao said the zone was expected to create around 100,000 jobs across several sectors. These include ready-made garments, electric vehicles, batteries and medical equipment manufacturing.

Why was the project delayed for a decade?

Bangladesh and China signed the memorandum of understanding for the CEIZ in 2014, but progress stalled for years. Delays in appointing a developer, securing financing and obtaining administrative approvals held back construction.

The project regained momentum after Prime Minister Tarique Rahman's visit to China in June. The launch follows Bangladesh's decision last month to transfer development rights for the 110-acre Mongla Port Economic Zone to China, after revoking an allocation previously granted to India in 2015.

India and China have been competing for influence across South Asia. Both countries are seeking to expand their economic and strategic footprints in the region through infrastructure and industrial investment.