China has announced plans to negotiate a new economic agreement with 53 African nations to eliminate tariffs. This initiative is designed to extend duty- and quota-free access beyond least developed countries (LDCs), covering middle-income nations. China already provides such access to numerous LDCs, including several African countries.
The policy aims to enable a wider range of African economies, including those with developed manufacturing infrastructures, to engage in the Chinese market. A statement from the Chinese Foreign Ministry followed a meeting in Changsha with African foreign ministers, emphasizing China's readiness to "welcome quality products from Africa" to its markets.
However, disparities between less-developed countries like Tanzania and more industrialized nations such as South Africa remain a concern. Therefore, China committed to supporting LDCs with training and marketing initiatives. This approach seeks to mitigate potential disadvantages for LDCs as the market access expands.
Hannah Ryder of Development Reimagined highlighted that the policy enables nations such as Kenya, South Africa, Nigeria, Egypt, and Morocco to enter the Chinese market effectively duty-free. While trade between China and Africa grows, it remains skewed toward China. Last year, China reported a trade surplus with Africa amounting to $62 billion.
Ryder noted the potential for balancing trade through increased African exports under this agreement: "Unless we have an equivalent increase of African exports to China, then trade deficits will continue to increase." The recent Beijing summit also saw China pledge a substantial economic package to African economies, indicating a renewed focus on investment following interruptions caused by the pandemic.
Source: Times Live