China to Remove Tariffs for All African Partner States Under New Economic Pact

China has announced plans to negotiate and sign a new economic pact with African countries that will eliminate all tariffs on exports from the 53 African states with which it maintains diplomatic relations. The initiative expands Beijing’s existing duty- and quota-free access program—previously limited to least developed countries (LDCs)—to now include middle-income nations across the continent.

“China is ready to… welcome quality products from Africa to the Chinese market,” said China’s foreign ministry, following a high-level meeting between Chinese and African foreign ministers in Changsha. The meeting was convened to assess progress on commitments made during a summit in Beijing in September last year.

Expanded Access to Support Economic Development

By extending market access beyond LDCs, China is aiming to “level the playing field,” providing more equitable trade terms to nations such as Kenya, South Africa, Nigeria, Egypt, and Morocco.

“It enables middle-income countries like Kenya, South Africa, Nigeria, Egypt and Morocco… to be able to now enter the Chinese market duty-free,” said Hannah Ryder, founder of Development Reimagined, an Africa-focused consultancy.

Analysts note that this policy shift could particularly benefit African economies with established industrial sectors, allowing them to export value-added products to the world’s second-largest economy.

Additional Support for Least Developed Countries

Recognizing the potential competitive disadvantage that LDCs may face under a broader market-opening policy, Beijing has committed to implementing targeted support measures for these nations.

To address this, China pledged assistance in areas such as skills training and marketing to help exporters from LDCs like Tanzania and Mali remain competitive.

A Step Toward Reducing Trade Imbalances

Although China-Africa trade has expanded significantly in recent years, it remains imbalanced. According to trade data, China recorded a trade surplus of $62 billion with Africa last year.

“Unless we have an equivalent increase of African exports to China, then trade deficits will continue to increase,” Ryder said. She added that the proposed economic pact could help address these disparities by encouraging more African exports.

Ongoing Investment Commitments

The tariff-free initiative follows China’s renewed financial commitment to African economies. During the 2023 Beijing summit, China pledged 360 billion yuan ($50 billion) in credit lines and investment over three years. This marked a return to substantial funding engagements in Africa, following a slowdown during the COVID-19 pandemic.

The upcoming trade agreement and accompanying support measures signal China’s intent to deepen economic ties with Africa, while also addressing concerns over trade imbalances and equitable development.

MMI