China Will Remove All Tariffs on African Exports

Following the China-Africa co-operation meeting, a new move was announced. China is Africa’s largest trading partner, and it has declared that it will remove the tariffs it charges on imports from 53 African countries.

This decision will benefit middle-income nations. Moreover, it will boost trade after several years of partnership between the two regions. Many of the African countries that will gain from this decision will be able to enter the Chinese market duty-free.

What Does the New Decision Involve?

China is Africa’s largest trading partner, and this has been the case for the last 15 years. Africa has been exporting goods to China worth about $170 billion back in 2023. Now, China has decided to drop the tariffs on 53 out of the 54 African nations, countries it has diplomatic relations with. The only exclusion is Eswatini, a nation that has not established any diplomatic relations with the Asian country.

There’s no implementation date confirmed, but the meeting confirmed the new move. This comes in the face of “global uncertainty”, which may be a reference to the United States possibly increasing tariffs on Chinese products.

A joint ministerial statement criticized “certain countries” trying to disrupt the current international economic and trade order. Then, it called on the United States to rely on “equality, respect, and mutual benefit” to resolve trade disputes.

“Faced with an international situation marked by changes and turmoil, China and Africa should uphold solidarity and self-reliance more than ever,” said Foreign Minister Wang Yi.

Decreasing China’s Trade Excess

One thing that China wants to do is offer various African powers, such as South Africa, Egypt, Morocco, and Nigeria, a much greater market access. This will help them increase their export capacity.

Moreover, the Asian country hopes this new project will reduce its structural trade surplus with Africa. At the moment, it’s $62 billion.

China also decided to support LDCs like Mali or Tanzania as businesses there face challenges against more developed countries. The Asian nation will offer training and marketing promotion. Beijing’s move will also have an effect on relatively advanced nations that could take advantage of the Chinese market.

“It enables middle-income countries like Kenya, South Africa, Nigeria, Egypt, and Morocco… to be able to now enter the Chinese market duty-free,” said Development Reimagined founder Hannah Ryder.

The Industries Included in China’s Plan

Although these tariff changes are expected to influence many sectors, it’s unclear which areas will be affected. The majority of African exports to China include raw materials, oil, and ores.

Many people are wondering if China will apply its policy to car exports from South Africa as well, and whether they have enough demand in the Asian country’s market.

Some individuals also worry that this policy might keep African countries limited to their status as raw material producers without helping them advance up the value chain. For now, the African nations are waiting to see the results of the tariff drop and how it will impact their economy.