New Bangladesh PM Faces Delicate Balancing Act On Trade Ties With US And China

2026-02-27 09:03:24

(MENAFN- IANS) New Delhi, Feb 24 (IANS) Bangladesh, under new Prime Minister Tarique Rahman, faces structural challenges in balancing the US and China trade ties as both are vital economic partners, a new report has said.

The Nikkei Asia report said that“onerous terms” of a US trade deal have highlighted how Rahman“faces a delicate balancing act” when it comes to ties with Washington and Beijing as the two vie for influence in his country.

While American is touting market access, security cooperation and regulatory leverage, China is offering infrastructure, industrial integration and defence supplies.

However, with the US Supreme Court striking down President Donald Trump’s reciprocal tariffs, the deal’s terms“indicate Washington’s desire to prevent Dhaka from edging toward its rivals”.

Failure to comply with agreed provisions could see tariffs revert to 37 per cent from the 19 per cent to which they have been lowered. Bangladesh is also expected to cooperate with U.S. export controls and sanctions.

“If Washington introduces new trade or border measures on economic or national security grounds, Dhaka is required to consult and may need to adopt corresponding steps,” said the report.

Chinese FDI stock in Bangladesh reached about $3 billion. Meanwhile, Beijing has also extended zero-tariff access to Bangladeshi exports alongside several other least developed countries.

According to Faiz Sobhan, senior research director at the Bangladesh Enterprise Institute in Dhaka, navigating the current polarised world of great-power rivalry will be structurally more challenging for Bangladesh.

Meanwhile, Bangladesh is heavily dependent on exports to the US market. The reliance on the US as an export destination increases the risk of abrogating on the trade deal.

“If US leverage is concentrated in trade and security, China’s position is more deeply embedded in Bangladesh’s industrial ecosystem. China supplies many of the goods that underpin Bangladesh’s manufacturing sector, particularly garments,” said the report.

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