China Grants Six African Nations Zero-Tariff Treatment on 98% of Products

In a significant move, Beijing has announced zero-tariff treatment for 98% of products entering China from six African countries, namely Angola, Gambia, the Democratic Republic of the Congo (DRC), Madagascar, Mali, and Mauritania. This initiative, effective from December 25, aligns with Chinese President Xi Jinping’s commitment to enhance agricultural imports from Africa and foster a “high-quality China-Africa community with a shared future.”

The six African nations, being rich in resources, especially the DRC and Angola, play pivotal roles in China’s imports, with the DRC accounting for over 60% of China’s cobalt imports. The tariff exemption signifies the “spirit of China-Africa friendship and cooperation.”

Over the past two years, 21 other African countries have already benefited from similar tariff cuts on 98% of their products. President Xi introduced these measures during the Forum on China-Africa Cooperation (FOCAC) in 2021, aiming to create “green lanes” for African agricultural exports, broaden the range of zero-tariff products, and expedite border processing.

China’s commitment involves importing products worth $300 billion from Africa by 2024. Recent data reveals that trade between China and Africa reached $234.8 billion in the first ten months of 2023, with China importing goods amounting to $91.5 billion.

The Customs Tariff Commission of the State Council plans to extend zero-tariff treatment to all “least-developed countries” with diplomatic relations with Beijing. This move is expected to bolster African food imports, marking a shift from China’s historical focus on raw materials.

The new measures enable the DRC to export goods like coffee, palm oil, rubber, cotton, and cocoa to China without facing tariffs. Similarly, Angola can now export tariff-free items such as coffee, sisal, fruit, seafood, and spices.

While these initiatives aim to address trade imbalances, some critics argue that China has been exporting finished products to Africa while importing raw materials, creating an uneven trade surplus. Calls have been made, including by Ugandan President Yoweri Museveni, for China to open its market for finished goods.

President Xi’s promise to help African countries produce more food products and establish processing industries aligns with efforts to balance trade and promote sustainable economic growth in the region. The shift in China’s engagement with Africa, focusing on agriculture and industries, is referred to as the “Hunan model,” emphasising collaboration in agritech, manufacturing, and transportation. The move underscores China’s commitment to fostering a mutually beneficial and balanced partnership with African nations.