In a significant development for international trade, China has implemented a zero-tariff policy allowing thirty-three African least-developed countries (LDCs) to export goods to China duty-free, effective December 2024. This initiative fulfills a pledge made by Chinese President Xi Jinping during the September 2024 Forum on China-Africa Cooperation (FOCAC) summit [a5b2fd26]. The policy builds on a 2003 scheme that previously allowed 190 tariff-free products and aims to enhance trade relations between China and Africa, particularly in the agricultural sector [a5b2fd26].
Historically, zero-tariff exports from 27 African LDCs totaled approximately US$578 billion from 2005 to 2022, with five countries accounting for 70% of Africa's exports to China, primarily consisting of crude oil and minerals [a5b2fd26]. The Chinese foreign ministry has asserted that this new policy will not only boost industrial development in Africa but also contribute to poverty reduction [a5b2fd26].
However, experts have expressed skepticism regarding the overall impact of the zero-tariff policy. They argue that for the benefits to be fully realized, there needs to be an increase in manufacturing capacity within these African nations [a5b2fd26]. This skepticism is echoed in the context of ongoing trade tensions globally, particularly with the United States, where tariffs are being discussed that could affect China's trade dynamics [ecc40f90].
As China navigates its trade relationships amidst rising tariffs from the U.S., the focus on African markets could represent a strategic pivot. The implications of this policy are significant, especially as China seeks to strengthen its economic ties with the African continent while also addressing its own economic challenges [ecc40f90].
In light of these developments, the future of trade between China and Africa appears promising, yet contingent on the ability of African nations to enhance their manufacturing capabilities and effectively leverage the opportunities presented by the zero-tariff access [a5b2fd26].