China zero-tariff policy towards the least developed countries in Africa is opening the door to freedom in economic and trade cooperation between China and Africa. The rich aroma of African coffee, the sweetness of cocoa, and the richness of mineral resources are deeply integrated with the excellence of Chinese industrial products and the vitality of technological innovation in the vast markets of China and Africa. From East African ports to the inland hinterland of China, from agricultural product exhibition stands to high-tech cooperation projects, China-Africa trade under the zero-tariff policy is painting a magnificent picture of mutual benefit and win-win with vigorous vitality.
Free trade brings great opportunities
In September 2024, China announced that it would grant zero-tariff treatment to 100% of the tariff items of all the least developed countries that have established diplomatic relations with China, covering 33 African countries. China has become the first major developing country and major economy in the world to implement this measure, taking concrete actions to turn China huge market into an important opportunity for Africa development. In fact, since 2005, China has continuously expanded its tariff preferences for Africa: previously, it has implemented zero tariffs on 98% of the tariff items of products from 27 African countries. It has also signed bilateral investment promotion and protection agreements with 34 African countries and reached double taxation avoidance agreements with 21 African countries.
The zero-tariff policy has effectively reduced the cost for African products to enter the Chinese market, significantly enhanced their export competitiveness, and injected strong impetus into Africa economic growth. At the same time, it has also brought more abundant raw material supplies to Chinese enterprises, provided consumers with more diverse consumption choices, and effectively promoted the complementary advantages of the industrial chains between China and Africa.
Complementary advantages expand the large market
In 2024, the trade volume between China and Africa reached 2.1 trillion yuan, increasing by 6.1% year-on-year. Since the establishment of the Forum on China-Africa Cooperation, the trade volume has increased by more than 24 times. Not only has there been a breakthrough in trade scale, but the trade structure between China and Africa has also been continuously upgraded. From agricultural products to mechanical and electrical products trade, from traditional commodities to the digital economy, the zero-tariff policy has eliminated trade barriers, building a broad road to the future between the least developed countries in Africa and the Chinese market.
The scale of trade continues to expand. African characteristic agricultural products are accelerating their entry into the Chinese market thanks to the zero-tariff policy. Coffee, nuts, avocados, mutton, etc. are deeply loved by Chinese consumers. In September 2024, Madagascar frozen mutton was successfully exported to China, and it is planned to achieve an annual export of 20,000 tons in the next 3 to 5 years. This fully demonstrates China full sincerity in expanding its imports of African agricultural products.
The types of commodities are increasingly diverse. The zero-tariff policy covers multiple fields such as agricultural products and manufactured goods. African agricultural products, mineral products, characteristic handicrafts, etc. have entered the Chinese market, enriching the choices of Chinese consumers. China manufactured goods, electronic products, mechanical equipment, etc. have also entered Africa at affordable prices, meeting the demands of African countries in infrastructure construction, industrial development and people livelihood consumption.
Industrial cooperation has been continuously deepened. Africa is rich in natural resources, and China has significant advantages in manufacturing, infrastructure construction, scientific and technological innovation and other fields. The two sides have carried out in-depth cooperation in areas such as resource development, manufacturing, and agriculture. The zero-tariff policy helps to build an industrial chain integrating raw material supply, processing and manufacturing, logistics and distribution, marketing and other links.
The policy mechanism has been continuously improved. The quarantine approval process for African agricultural products has been continuously simplified, the access time has been significantly shortened, and the categories of products exported to China have continued to expand. In addition, the China-Africa Development Fund, multilateral financial institutions, etc. have provided financing support for enterprises of both sides, effectively reducing the investment risks of enterprises.
Lets join hands and embrace the great future together
In the future, African countries will rely on zero-tariff policies to increase investment in manufacturing, enhance the added value of products, and gradually reduce their reliance on the export of primary products. China will also further expand investment and cooperation in high-end manufacturing, services and other fields in Africa, and promote the development of China-Africa trade structure to a higher level and more diversified direction. With the popularization of Internet technology, e-commerce trade between China and Africa will embrace significant development opportunities. Enterprises and consumers from both sides can conduct commodity transactions and information exchanges more conveniently through e-commerce platforms. E-commerce platforms are expected to become an important pillar of China-Africa trade. It is learned that Hunan Province is actively promoting the direct procurement of African coffee through e-commerce platforms, significantly shortening the supply chain.
It is particularly worth noting that the zero-tariff policy will further promote regional economic cooperation between China and Africa. China and some regional economic organizations and countries in Africa will carry out broader cooperation in areas such as trade, investment and infrastructure construction to promote the process of regional economic integration.
Looking ahead, the zero-tariff policy will boost China-Africa trade and promote economic and trade cooperation between the two sides to a higher level. China-africa trade will break through the traditional development model and move forward hand in hand in new fields such as green development, technological innovation and digital trade. China-africa cooperation will forge ahead on the bright path of free trade. (Source: International Business Daily)
