China has announced that it will remove all tariffs on exports from African nations it maintains diplomatic relations with, opening its vast domestic market to 53 countries across the continent. The decision, revealed after a meeting between senior Chinese and African officials in Changsha, comes as Beijing seeks to deepen trade ties and address long-standing imbalances in commerce with Africa.
Levelling the Trade Field
Until now, duty- and quota-free access applied only to least developed countries (LDCs), many of which are in Africa. The new framework extends the same access to middle-income economies, analysts say could significantly change the flow of goods. It enables middle-income countries like Kenya, South Africa, Nigeria, Egypt and Morocco to be able to now enter the Chinese market duty-free,
The change could allow countries with stronger manufacturing sectors to expand value-added exports into China, while smaller economies continue to rely on raw materials. To offset concerns that LDCs could lose ground, Beijing pledged additional support through training and marketing initiatives to help smaller exporters remain competitive.
Trade Deficit Concerns
Trade between China and Africa has surged in recent years, but the balance remains heavily tilted towards China. Last year alone, China recorded a $62 billion trade surplus with Africa.The removal of tariffs could ease this disparity, but only if African exports rise substantially.
Billions in Pledged Support
During last year’s Forum on China-Africa Cooperation (FOCAC) summit in Beijing, China committed 360 billion yuan ($50 billion) in credit lines and investments over three years. This marked a return to large-scale financing after a slowdown during the pandemic. The tariff removal plan builds on that pledge, reinforcing China’s strategy to expand its influence and presence across African markets while offering the continent broader access to the world’s second-largest economy.
Source:Reuters
