In a landmark move for international trade, China has announced a zero-tariff policy for thirty-three African least-developed countries (LDCs), allowing them to export goods to China duty-free starting December 2024. This initiative, which covers 100% of tariff lines, was first pledged by Chinese President Xi Jinping during the September 2024 Forum on China-Africa Cooperation (FOCAC) summit [a5b2fd26][9f4df79b]. This policy builds upon a previous scheme initiated in 2010 that initially covered 97% of products, reflecting China's long-standing commitment to enhancing trade relations with African nations [9f4df79b].
The significance of this policy is underscored by the fact that China's imports from LDCs surged from US$52 billion in 2019 to US$70.3 billion in 2023, with agricultural imports specifically increasing from US$3.1 billion to US$4.8 billion during the same period [9f4df79b]. Notably, processed food imports from Mauritania rose by 34.4%, showcasing the growing importance of agricultural exports in this trade relationship [9f4df79b].
Despite the optimism surrounding the zero-tariff policy, experts remain cautious about its potential impact. They emphasize that for African nations to fully benefit from this initiative, there must be significant improvements in their manufacturing capabilities [a5b2fd26]. This sentiment is echoed by the fact that while China is focusing on securing critical mineral supply chains, particularly cobalt from the Democratic Republic of Congo, the overall industrial development in Africa is still lagging [9f4df79b].
Moreover, President Xi Jinping has pledged to invest US$51.4 billion in Africa by 2027, which is expected to further strengthen economic ties between China and the continent [9f4df79b]. However, this economic engagement contrasts sharply with the U.S.'s lower priority on African markets, suggesting a strategic shift in global trade dynamics [9f4df79b].
As China navigates its trade relationships amidst rising tariffs from the U.S., the focus on African markets through this zero-tariff policy could represent a pivotal moment for both Chinese and African economies. The future of trade between China and Africa appears promising, contingent upon the ability of African nations to enhance their manufacturing capabilities and leverage the opportunities presented by this new policy [a5b2fd26][9f4df79b].