China and Bangladesh have agreed to promote bilateral economic relations with the intention to narrow the trade imbalance and also to encourage investment between the two countries, Xinhua News Agency reported.

Trade between the two countries reached a record level of about US$3.19 billion in 2006, an increase of 28.5 percent from the previous year. The increase in trade was largely due to the fact that China had granted tariff-free access to 84 Bangladeshi items within the framework of the Asia-Pacifi c Trade Agreement (AFTA).

During recent talks between the two countries, Bangladesh invited more Chinese investment in the power, infrastructure, construction and electrical products sectors. Conversely, Bangladeshi fi rms were invited to invest in China and to attend the Guangzhou Chinese Import and Export Commodities Fair to display Bangladesh’s various products to the Chinese people.

China and Bangladesh have also signed an agreement on Economic and Technical Co-operation, which provides 100 million RMB (about $13.2 million) to Bangladesh as interest-free loan and 80 million RMB (about $10.5 million) as non-reimbursable assistance