China initiates zero-tariff treatment for least-developed African nations

China has implemented zero-tariff treatment for six least-developed African countries, marking a significant step towards enhancing bilateral trade and showcasing a demonstration effect for China’s global cooperation strategy.

The Customs Tariff Commission of the State Council announced on December 6 that 98 percent of taxable products from Angola, The Gambia, the Democratic Republic of the Congo (DRC), Madagascar, Mali, and Mauritania would be exempt from import tariffs starting on Monday.

Sarah Wang, Executive Director of Beijing Wise Century Trading Co, emphasized the profound impact of these measures on trade, stating, “With zero tariffs, these countries could expand sales channels, generate foreign exchange reserves, and create jobs.”

This move aligns with China’s commitment to the China-Africa comprehensive strategic and cooperative partnership and fulfills its responsibility under the WTO-led Aid for Trade Initiative, according to Song Wei, a professor at Beijing Foreign Studies University.

Over the past two years, 21 African countries have already benefited from China’s elimination of tariffs on 98 percent of their taxable products, reflecting a commitment to fostering a high-quality China-Africa community with a shared future.

He Wenping, a senior research fellow, stated that the zero-tariff treatment would not only boost bilateral trade but also contribute to the post-pandemic economic recoveries of African countries.

This initiative is a significant implementation of China’s commitments made at the 8th Forum on China-Africa Cooperation in 2021.

Observers anticipate a boost in trade, particularly in the flourishing agricultural sector, as the tax exemption facilitates the entry of high-quality African products into the Chinese market at more competitive prices.

China’s agricultural imports from Africa have seen a remarkable increase, with an average annual growth rate of 11.4 percent.

In 2022, China remained Africa’s second-largest export destination for agricultural products, with total imports worth $5.20 billion.

The tax exemption covers a wide range of products, from coffee, palm oil, seafood, and spices to non-food crops like sisal and rubber.

These six African countries, rich in resources, present opportunities for China to diversify its import sources, strengthen food security, and facilitate the yuan’s internationalization.

With China-Africa trade reaching 1.81 trillion yuan ($253.65 billion) in the first 11 months of the year, a year-on-year increase of 7 percent, experts foresee a demonstration effect on China’s exchanges with other markets, especially in the Global South.

The zero-tariff treatment becomes a reference for China’s cooperation with other least-developed countries, fostering policy connections and technical cooperation to optimize product supply capacities and integrate into global industry chains.