Chinese companies in the spotlight for illegal activities in Bangladesh

Dhaka.Several Chinese companies in Bangladesh have come under scrutiny for involvement in illegal activities, according to a news report that highlight a trend that raises concern among the authorities.

Most of the illegal activities occur in the construction sector, mostly about printing of counterfeit documents and in the trade of prohibited items, Live News reported, citing an investigation into several cases.

The report said that the illegal exploits of Chinese firms, especially in the construction sector and trading of prohibited goods with the printing of fake documents, have come to light in the recent past.

Bangladesh authorities in May accused Hangzhou Union Biotechnology Co Ltd (HUBCoL) of trying to export prohibited items to Bangladesh. HUBCoL is a leading Chinese brand mainly engaged in food additives and pharmaceutical materials.

The company supposedly declared to send a consignment of Soda Ash Light to one of its Dhaka based associates but on inspection authorities discovered 19 tonnes of Sodium Cyclamate (SC). The consignment had originated from CNTAO Qingdao Port, China and arrived in Chittagong.

Sodium Cyclamate is a type of condensed sugar 30 to 50 times sweeter than the ordinary one and has been banned in Bangladesh. The consumption of SC increases the risk of contracting cancer. In order to dodge authorities, HUBCoL had furnished a false declaration.

In another case of corruption, an official of China Harbor Engineering Company (CHEC) was earli in June, 2022 jailed for three months for illegally selling selling-off sand meant for filling work at the Sabrang Tourism Park, Teknaf, Cox’s Bazar. The Chinese national was penalized BD Taka 2.5 lakhs. The case mirrored on another one last December when China Road and Bridge Construction Company officials were found to be involved in tax evasion while importing construction materials for government schemes.

In January 2022, a Chinese company Digi Anti Fake Company reportedly supplied counterfeit bandrolls (a thin ribbon wrapped on bidi and cigarette packets) resulting in fraudulent tax evasion of BD Taka 250 crore for Bangladesh. This company was also found involved in printing counterfeit Bangladeshi registration documents.

In another case of tax evasion, Tianye Outdoor (BD) Co Ltd (TOCL), a subsidiary of Chinese company Comefly Outdoor Co Ltd had allegedly indulged in tax evasion and fraud to the tune of about BD Taka 21 crore.

Another company Sino-Kemmed Trading Co (SKTC), a subsidiary of Global Pet Product Co Ltd, had illegally sent 120 tonnes of high value Dextrose Monohydrate under the garb of coated calcium carbonate to one of its associates in Bangladesh. Had it not been detected in time, it would have resulted in loss of BD Taka 42 Lakhs 13 thousand to the exchequer.

China eyeing high-speed rail network

China is eyeing high-speed rail network projects after Bangladesh Railway’s signaled to build a railway network between Dhaka and Chattogram. The Daily Star reported recently that China has proposed to the Bangladesh government to pursue the project under the G-PPP framework. Chinese Ambassador to Bangladesh Li Jiming has also written to Railway Minister Nurul Islam asking for the signing of an MoU.

Anti-corruption activists are demanding that the government of Bangladesh take a firm commitment to carry out unbiased review of the functioning of Chinese firms in the country to tighten the noose on tax evasion and other illegal activities dangerous to the lives of its people.