China Announces Zero-Tariff Policy for Least Developed Countries, Boosts Trade with Africa

China Announces Zero-Tariff Policy for Least Developed Countries, Boosts Trade with Africa

Beijing, Sept. 12 (Xinhua) China has unveiled a zero-tariff policy for all least developed countries (LDCs) with diplomatic ties to China, offering zero tariffs on 100% of tariff lines. This new measure, announced by the Customs Tariff Commission of the State Council, will take effect on December 1, 2024, as part of China’s efforts to support the economic development of these nations.

The policy will benefit 33 African countries and other least-developed nations, marking China’s commitment to expanding unilateral trade openness and fostering shared development. For products subject to tariff quota administration, items within the quota will enjoy zero tariffs, while those exceeding the quota will remain subject to existing rates.

Chinese President Xi Jinping highlighted this initiative during his keynote speech at the opening of the 2024 Forum on China-Africa Cooperation (FOCAC) Summit in Beijing. He emphasised that China is the first major developing nation and economy to take such a significant step, positioning China’s vast market as a key opportunity for Africa’s growth.

“We are turning China’s big market into Africa’s big opportunity,” Xi stated, adding that China will further expand access to African agricultural products, strengthen e-commerce partnerships, and introduce a “China-Africa quality enhancement programme.”

Experts believe this trade measure will significantly boost China-Africa trade and investment, providing a new impetus for Africa’s development. Song Wei, a professor at Beijing Foreign Studies University, noted that the policy will not only enhance trade between Africa and China but will also empower Africa’s autonomous development by leveraging its strengths, such as agriculture and mineral resources.

“This zero-tariff treatment is crucial for unlocking Africa’s development capabilities through enhanced trade rather than just increasing trade volumes,” said Song.

The trade relationship between China and Africa has shown impressive growth under the strategic leadership of both regions’ heads of state. In 2023, China-Africa trade reached $282.1 billion, a record high for the second consecutive year, according to Lin Honghong, Director of International Relations at the China Council for the Promotion of International Trade. Lin also highlighted that over the past three years, Chinese companies have created over 1.1 million jobs in Africa, underscoring the strong momentum of China-Africa economic cooperation.

The zero-tariff policy is expected to further boost the entry of African agricultural and mineral products into China while helping to promote Chinese goods in Africa via e-commerce, improving the quality of life for African citizens, and addressing the continent’s development needs.

This landmark policy sets the stage for deeper economic ties between China and the least developed countries, fostering long-term growth and cooperation.