China claims that in order to increase commerce, it will eliminate all tariffs on African products

China stated it will negotiate and sign a new economic agreement with Africa that will eliminate all tariffs on the 53 African countries with which it has diplomatic relations. This agreement could help middle-income countries.

The Asian economic behemoth provides least developed countries (LDCs), including several in Africa, with duty- and quota-free market access; but, the new program will level the playing field by providing middle-income nations with comparable market access.

Following a meeting of senior Chinese officials with African foreign ministers in Changsha to examine the fulfillment of agreements made during a summit in Beijing last September, China’s foreign ministry declared, “China is ready to… welcome quality products from Africa to the Chinese market.”

Given the substantial difficulties that companies in LDCs like Tanzania or Mali may encounter from their more established counterparts in South Africa once the market is fully opened, China promised to take further steps to assist LDCs, such as marketing promotion and training.

Analysts said Beijing’s action would make it easier for relatively developed nations with sizable manufacturing bases for value-added goods to tap into China’s enormous market.

“It makes it possible for middle-income nations like Kenya, South Africa, Nigeria, Egypt, and Morocco… to now be able to enter the Chinese market duty-free,” stated Hannah Ryder, the founder of the Africa-focused consultancy Development Reimagined.

Although trade has increased recently between China and Africa, it has been significantly skewed in China’s favor, with a $62 billion surplus last year.

“Trade deficits will continue to increase unless we have an equivalent increase of African exports to China,” Ryder stated, adding that the Beijing-announced effort might aid in trade balance.

After a lull due to the epidemic, China returned to big-ticket finance deals for Africa last year when it promised 360 billion yuan ($50 billion) in credit lines and investments to African countries over three years during the Beijing conference.