The economic conflict between China and the United States, which began in 2018, has continued to evolve over the years, becoming a defining feature of global trade dynamics. What started as a series of tariffs and trade barriers imposed by Washington on Chinese goods quickly escalated into a full-blown trade war.

Many Chinese companies are investing in Bangladesh to leverage Dhaka’s comparatively lower tariffs and cost-effective manufacturing environment.
Over $160 million in Chinese-backed projects, including garment and accessory factories, are being developed in Bangladesh.
Retaliatory tariffs reached 145 per cent from the US and 125 per cent from China, before reaching a 90-day truce between the two sides.

Though a partial truce in the form of a phase-one agreement was reached in January 2020, the rivalry has intensified again in recent years—especially in 2025, following the return of Donald Trump to the White House for a second term as the President, following which Trump started imposing reciprocal tariffs on countries.

Under the renewed Trump administration, trade tensions were reignited as new tariffs were introduced, not only affecting China but also a host of nations. Both China and the US raised tariffs on each other’s goods to over 100 per cent before briefly stepping back to reduce rates under a temporary truce.

This pause, which was originally scheduled to expire on August 12, was extended by another 90 days until November 10, offering a narrow window for further negotiations. Yet the underlying tensions have remained unresolved. Earlier this year, at the peak of the renewed trade war, the US introduced sweeping retaliatory tariffs of 145 per cent on a broad range of Chinese imports. In response, China retaliated with tariffs reaching 125 per cent on American goods, marking one of the most severe escalations in recent years.

With the threat of steep reciprocal tariffs looming large, Beijing is apparently exploring alternative trade and investment strategies to mitigate risk, and a key part of this strategic pivot seems to be centred on Bangladesh.

Recent developments suggest that China is ramping up investments in Bangladesh as part of a broader plan to establish an alternative production base, potentially enabling Chinese firms to navigate around the US-imposed trade barriers. This trend comes amid Washington’s decision to lower reciprocal tariffs on Bangladeshi exports — Bangladesh secured a 20 per cent tariff rate, comparable to many of its competitors.

However, the availability of affordable manpower and its well-established standing as a manufacturing hub only enhanced the country’s appeal as a destination for manufacturers seeking to hedge against geopolitical uncertainty while also enjoying cost-competitiveness.

The relocation effort appears to be gaining momentum in sectors such as readymade garments and textiles —areas where Bangladesh already holds a competitive edge.

Several Chinese firms have already committed to several large-scale projects in the country, as per reports. Among them, China Lesso Group is reportedly investing $32.77 million in a facility located in the National Special Economic Zone, signalling a long-term manufacturing commitment. Similarly, Kaixi Group is setting up a $40 million apparel and accessories plant within the BEPZA Economic Zone in Mirsarai, a rapidly developing industrial hub.

As per reports, additional investments include Handa (Bangladesh) Garments Co. Ltd, which is channelling $41.3 million into an automated garment manufacturing facility designed to produce 72 million pieces annually. Another notable entrant is Unifa Accessories (BD) Co. Ltd, a joint venture between Chinese and British Virgin Islands stakeholders, which is reportedly investing $48.7 million to manufacture 28 million fashion products a year.

The timing and scale of these investments suggest that China is proactively positioning itself to absorb future trade shocks, particularly those that may arise if the United States imposes further punitive measures after the current tariff reprieve ends. By expanding its footprint in Bangladesh, Chinese firms can continue accessing the lucrative US market through a more favourable trade corridor, thereby insulating themselves from the impacts of higher tariffs.

In light of these developments, the China-Bangladesh trade axis is apparently emerging as a critical component of Beijing’s broader strategy to navigate the complexities of the US-China economic standoff. With Bangladesh offering a combination of tariff advantages, a growing industrial base, and affordable labour, it presents a viable solution for Chinese manufacturers to mitigate the risks posed by an increasingly protectionist US trade policy.

As the November deadline approaches, the investment surge into Bangladesh, many feel, reflects a calculated effort by China to preserve its global trade flows in an era of heightened economic nationalism.

Fibre2Fashion News Desk (DR)

In Mumbai, cotton yarn prices dropped by ****;*–* per kg for coarse counts, while finer counts stayed stable. A Mumbai trader told Fibre*Fashion, “Consumers and traders are avoiding stocking up as the new cotton crop is about to enter the market. Duty-free cotton imports this year will also keep prices under pressure. Buyers are purchasing yarn only for immediate requirements.”

In Mumbai, ** carded yarn of warp and weft varieties were traded at ****;*,***–*,*** (~$**.**–**.**) and ****;*,***–*,*** per * kg (~$**.**–**.**) (excluding GST), respectively. Other prices include ** combed warp at ****;***–*** (~$*.**–*.**) per kg, ** carded weft at ****;*,***–*,*** (~$**.**–**.**) per *.* kg, **/** carded warp at ****;***–*** (~$*.**–*.**) per kg, **/** carded warp at ****;***–*** (~$*.**–*.**) per kg and **/** combed warp at ****;***–*** (~$*.**–*.**) per kg, according to trade sources.

emtec Electronic GmbH introduces a new era in textile feel simulation at China’s most important textile event. The key benefit: TSA and Virtual Haptic Library improve the communication along the supply chain by providing a clear terminology and objective targets for the different haptic quality parameters. This helps companies to reduce costs, accelerate decision-making, and minimize their environmental footprint by decreasing the number of physical samples needed.

At ITMA ASIA + CITME 2025 in Singapore, Emtec Electronic GmbH will showcase its TSA and cloud-based Virtual Haptic Library, enabling digital fabric feel simulation to cut costs, speed decisions, and reduce samples.
Marking its 30th anniversary, emtec highlights its shift into textiles and invites visitors to booth H3-B303 for live testing and demonstrations.

In the cloud-based Virtual Haptic Library the test results can be digitized for further processing. This digital platform links TSA data to realistic, virtual haptic profiles, allowing users the impression of how fabrics feel – without physical samples. This digital platform links TSA data to realistic, virtual haptic profiles, allowing users to feel fabrics digitally – without physical samples. This helps companies to reduce costs, accelerate decision-making, and minimize their environmental footprint by decreasing the number of physical samples needed.

2025 marks a special milestone for emtec Electronic: the company celebrates its 30th anniversary. Since 1995, emtec has been dedicated to developing innovative testing solutions that combine precision, efficiency, and ease of use – a commitment that continues to drive its success and partnerships worldwide. “The ITMA is the perfect stage to demonstrate how far our solutions have come – and to show our partners and customers what the future of objective hand-feel analysis will look like.” says Giselher Gruener, Managing Director of emtec Electronic. “With our long-standing expertise in the paper industry, we are now setting a clear focus on establishing ourselves in the textile sector.”

From 28 – 31 October 2025 Markus Amthor from emtec’s Global Business Development will be available on-site, supported by the company’s regional sales partner in China, James Xiang from RoacheLab (Asia) Co., Ltd. Visitors of the ITMA ASIA + CITME are warmly invited to bring their own textile samples to the booth H3-B303 for live testing and direct discussion of results. 

Visit the emtec team in Singapore to discover how their tactile analysis solutions can optimize the product development and streamline communication with customers and partners across the globe.                     

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (HU)