Source: People's Daily Overseas Edition
South African wine, Nigerian cocoa beans, Algerian olive oil... these goods from Africa are crossing the ocean at a lower cost, getting closer to Chinese consumers.
Starting December 1, 2024, China will provide 100% tariff-free treatment for all products of 33 African countries and other least developed countries that have diplomatic relations with China. Recently, China announced that the zero-tariff policy will be expanded to 53 African countries that have established diplomatic relations with China. Industry experts believe that this measure will promote Sino-African cooperation to move towards deeper industrial collaboration, creating higher value-added outcomes.
Wider coverage of countries
— By signing the Economic Partnership Agreement for Common Development, implementing the 100% tariff-free measures for 53 African countries that have established diplomatic relations with China.
On a workday afternoon, in a cafe in Chaoyang District, Beijing, several customers were leisurely enjoying coffee. On the counter, there were several glass jars containing coffee beans. Getting close, the fragrance was strong.
"Most of our beans come from Rwanda. Initially, I found them by accident when I traveled there," said the owner Zhang Xue. In some high-altitude areas of Rwanda, the temperature difference between day and night is large. The coffee beans grown in these special climate and soil conditions are full of grains, with distinct fruit and floral aromas, and some even have caramel and chocolate sweetness. "In the past, the customer base for imported coffee beans was relatively small. Although people were willing to try, the prices were relatively high. In recent years, Sino-African cooperation has become increasingly close, and the tariffs on goods have been continuously adjusted, reducing product costs while allowing more coffee lovers to taste the beans from Rwanda, and local farmers' incomes have significantly increased."
The changes are not only reflected in these jars of coffee beans. In recent years, many cities in China have seen more varieties of African products on supermarket shelves: Rwandan chili sauce, Senegalese tuna, Kenyan avocados, Beninese pineapples... These are significant achievements of China's tariff adjustments for Africa.
In recent years, China has continuously expanded its market openness to African countries, promoting the export of high-quality African products to China. Starting December 1, 2024, China provided 100% tariff-free treatment for all products of 33 African countries and other least developed countries that have diplomatic relations with China, becoming the first developing country and major world economy to implement this measure.
"The zero-tariff policy has greatly reduced the barriers for African products entering the Chinese market, creating conditions for the expansion of African exports and the diversification of product categories," said Wang Jinjie, Deputy Secretary-General of the African Research Center at Peking University, who spoke to the reporter. Last year, Sino-African trade reached $295.6 billion, continuing for the fourth consecutive year to set a new historical high. China has maintained its position as the largest trading partner of Africa for 16 consecutive years. From the implementation of the zero-tariff policy to March of this year, China's imports from the least developed African countries reached $21.42 billion, an increase of 15.2%. Looking at coffee alone, the import of coffee from Africa in the first quarter of this year increased by 70.4%, and cocoa bean imports increased by 56.8%.
Recently, China officially announced the expansion of the scope of the zero-tariff policy. China is willing to sign the Economic Partnership Agreement for Common Development, implementing the 100% tariff-free measures for 53 African countries that have established diplomatic relations with China.
"Expanding the zero-tariff range to 53 African countries aims to further support African countries in expanding their exports to China, enhancing their trade and economic cooperation capabilities, and creating institutional guarantees for deepening Sino-African trade and economic cooperation," said Wang Jinjie. These tariff items include, but are not limited to, African exports to China such as oil and minerals, including copper ore, bauxite; agricultural and forestry products, such as coffee, cocoa, cotton, fruits, and nuts; primary processed products, such as rubber and wood boards; chemical products, such as fertilizers and rubber products, and other consumer and industrial goods. "These African goods will enjoy complete tax exemption in all categories when entering the Chinese market."
From pilot projects to comprehensive deepening
— Providing market access opportunities for African countries, which may offer differentiated development opportunities for countries with different resource endowments.
Industry experts analyze that the expansion of the zero-tariff policy to 53 African countries with which China has diplomatic relations marks the transition of Sino-African trade and economic cooperation from partial pilot projects to comprehensive deepening.
"This 'expansion' measure breaks the previous model of limited opening for specific countries or products, better achieving equal mutual benefits for African partners," Wang Jinjie told the reporter. Traditional free trade frameworks usually rely on reciprocal negotiations and categorized exemption lists, which are generally beneficial to partners, but it is difficult to meet the demands of all developing countries simultaneously. "China's expansion of the zero-tariff policy provides all African partners with the same market access treatment through unilateral expansion of openness, and also includes facilitation measures such as simplifying customs procedures and optimizing customs clearance processes. This institutional innovation effectively responds to the expectations of African countries for equal participation in the global trade system."
This year, the "African Food Entry Pre-assessment System" has been approved by the General Administration of Customs and implemented in the Hunan Free Trade Zone. This measure conducts risk assessments in advance for African food products that enterprises in the free trade zone intend to import but have not yet obtained Chinese entry approval. This is expected to further reduce the time required for African agricultural and food products to enter China, and smooth their "green channel." As a pilot area for in-depth Sino-African trade cooperation, Hunan has also laid out related infrastructure in 12 key cities and ports in African countries such as Nigeria, Cote d'Ivoire, and Tanzania, improving cross-border trade convenience through direct sourcing methods.
"We will actively serve the import needs of enterprises in the Hunan Free Trade Zone and promote the development of the supply chain for African coffee, nuts, and meat products in Hunan," said a responsible person from the Changsha Customs.
Benefits are not limited to the agricultural and food product sector. African countries differ in geographical environment, resource endowments, and economic structures. For example, Kenya is an important flower exporting country in Africa, and its roses and other flowers are highly favored in the international market. Tanzania has considerable production of cashew nuts and jute. South Africa, one of the most economically developed countries in Africa, has a relatively complete industrial system, and its mining and agriculture sectors are relatively mature. The expansion of the zero-tariff policy may bring differentiated impacts on the economic development of various types of African countries.
"After the implementation of the zero-tariff policy, it will increase the export of mineral resources, energy, and agricultural products from Africa to China on a larger scale," analyzed Professor Zhang Chuanhong from the School of Humanities and Development at China Agricultural University. Whether it is resource-based, agricultural, or countries with weak industrial foundations, African countries can use the zero-tariff policy to enhance their exports to China, further develop their industrial chains and value chains, and promote local economic growth. "Especially in some African energy powers, such as Nigeria, Mozambique, and Senegal, they have formulated energy commercialization strategies. With the implementation of the zero-tariff policy, these countries will gain more export revenue, laying the foundation for their economic diversification and industrial upgrading."
Providing more opportunities for African countries
— Encouraging more African goods to be imported into China, attracting Chinese enterprises to increase investment in Africa and promote industrial chain cooperation.
Nowadays, China is actively promoting the extension of local value chains in Africa, better empowering African development.
"We are running a family business. In the early years, my father mainly did small businesses within Tanzania, and when I took over, the number of export orders gradually increased. Now, China is Tanzania's largest trading partner, and we have customers in Shanghai, Beijing, and Guangzhou," said Jiteng Waissa, a representative of a seafood company in Dar es Salaam, Tanzania. He told the reporter that after taking over the family business, he adapted to market demand and opened a new processing plant. From selling only fish products, the company now produces various processed foods, many of which are sold to China. Now, the company is doing well and has also created employment for many locals.
Such stories are frequently unfolding across the African continent.
Tang Wenhong, Assistant Minister of the Ministry of Commerce, introduced that Chinese enterprises are increasing investments in various trade and economic zones in Africa, promoting Sino-African industrial chain cooperation, making important contributions to local taxation, employment, and foreign exchange earnings. In Egypt, the Suez Economic and Trade Cooperation Zone built by Chinese enterprises has formed industrial clusters in textiles, glass, building materials, and home appliances, becoming a successful case of helping African industrialization. In Tanzania, the East African Trade and Logistics Industrial Park built by Chinese enterprises has attracted more than 430 small and medium enterprises, and once fully operational, it is expected to create over 20,000 jobs locally. In Zambia, the Zambian-Chinese Economic and Trade Cooperation Zone being built by Chinese enterprises is working to build a full industry chain of copper mining, smelting, and processing, helping Africa improve the added value of its mineral products.
"The Ministry of Commerce will work with relevant departments to promote the signing of the Economic Partnership Agreement for Common Development with African countries according to the principles of equal consultation and mutual benefit," said a responsible person from the Ministry of Commerce. China will fully consider the actual situation and specific demands of African countries, and conduct consultations in a flexible and practical manner on modules such as more convenient trade, more inclusive growth, more resilient supply chains, and more modern development fields, and reach an agreement that complies with WTO rules and meets both sides' interests as soon as possible. Ultimately, achieve 100% tariff-free treatment for all product categories, using China's super-large market and the achievements of China's modernization to provide more opportunities for African countries."
"Launching the zero-tariff policy for Africa encourages more African goods to be imported into China, which will also promote the upgrading of Chinese industries," Wang Jinjie believes. For example, Ethiopian coffee beans entering the Chinese market bring price competition pressure, prompting Yunnan coffee companies to adopt advanced technologies and improve processes, continuously increasing the rate of premium coffee and deep processing. At the same time, Chinese enterprises are also investing in automated shelling plants in Nigeria, reducing local processing costs and creating job opportunities, and also boosting the growth of Chinese food machinery exports. "In the process of cooperation and competition, China and Africa have already nurtured a higher level of complementary integration."
In Wang Jinjie's view, Chinese enterprises can establish processing bases and procurement centers in Africa to promote the linkage of investment and trade layout. At the same time, actively participate in the construction of export-oriented infrastructure and logistics systems in African countries, strengthening the construction of ports, parks, and digital trade hubs. This not only enhances the global allocation capacity of Chinese capital, but also helps African countries attract more high-value-added industries to their localities, forming stable employment and tax sources, and upgrading from commodity exports to industrial collaboration. For African countries, Chinese enterprises can also train local talents through skill training cooperation, joint degree programs with universities, and researcher exchange mechanisms, cultivating a group of "understanding Sino-African, understanding technology, and understanding trade" compound talents, thus achieving the institutional embedding of South-South talent cooperation in the new global trade landscape.
Original article: https://www.toutiao.com/article/7534908645168742962/
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