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Mainstream BBC Asia 2 days ago

China scraps tariffs for all but one African nation

China has announced it will eliminate tariffs on imports from all African countries except Eswatini, which maintains diplomatic ties with Taiwan. This move expands a duty-free policy that had already been in place for 33 least-developed African nations to now cover 53 countries. The zero-tariff regime is set to begin immediately and will remain until at least the end of 2024, although its status beyond that remains uncertain. Beijing has highlighted this policy as a first among major economies, aiming to strengthen economic ties and enhance its soft power across the continent. Despite the tariff removal, analysts caution that tariffs are not the primary barrier for African exporters, who face structural challenges such as limited industrial capacity, weak logistics, and heavy reliance on raw commodity exports. Sino-African trade remains heavily skewed in China’s favor, with Africa’s trade deficit with China reaching approximately $102 billion last year, a 65% increase from the previous year. African exports to China are largely concentrated in raw materials like crude oil, cobalt, and metallic ores, while Chinese exports to Africa include a broader range of manufactured goods. Experts note that the benefits of the zero-tariff policy may be uneven across the continent. More industrialized economies such as South Africa and Morocco are better positioned to capitalize on the new trade terms, while less developed countries may see limited gains. The policy alone is unlikely to address deeper economic issues facing African nations, including the need for economic diversification and infrastructure development. However, some analysts suggest that over the long term, the tariff elimination could encourage African countries to expand production, diversify their exports, and move up the value chain, potentially fostering more sustainable economic growth. This initiative also serves as a strategic contrast to recent U.S. trade policies, which have seen tariffs imposed on some African exports. China’s move is viewed as an effort to position itself as a more Africa-friendly economic partner, reinforcing its influence on the continent amid shifting global trade dynamics.

Original story by BBC Asia View original source

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