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    The Impact Of Bangladesh'S Imports On Chinese Products

    2020/2/24 15:26:00 45

    BangladeshImporting Chinese Products

    According to a commentator article published in Bangladesh's "Financial Express" in February 23rd, any country with close economic ties with China should pay attention to the economic and trade impact of the new crown pneumonia epidemic on China's second largest economy. Bangladesh imports about 30% of its total imports from China, and many textile industries use raw materials from China. As of February 21st, the volume and value of imports from China decreased by 20.87% and 8.29% respectively from January 1st to now. In particular, Bangladesh's textile industry was hit hard by the decline in imports of raw materials. Bangladesh is unable to import imported products from other textile sources to substitute products from other sources in China. Local raw materials and other subsidiary materials processing enterprises take advantage of this opportunity to raise product prices.

    Bangladesh's decline in imports from China will also affect Bangladesh's fiscal and tax revenues, because tariff revenues will decline. According to Bangladesh's State Taxation Bureau, if the new crown pneumonia outbreak causes bad economic impact, Bangladesh's import tariff revenue will be reduced by 7-8% compared with the expected target. Because many of the raw materials imported from the garment processing industry enjoy the tax exemption policy, the impact of losses will not be as high as 2 digits.

    The article also says that for many countries, China has always been a stable source of production and suppliers for all kinds of goods and services of high quality and low price. If there is a problem in the supply chain, it will aggravate other effects caused by the epidemic.

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