CHINA has implemented a sweeping zero-tariff trade policy for 33 African least-developed countries (LDCs), allowing duty-free access for exports to its markets. While the move could strengthen economic ties, experts caution that its impact may be limited unless African nations pivot from exporting raw materials to value-added goods.
This policy fulfils a commitment by Chinese President Xi Jinping at the 2023 Forum on China-Africa Cooperation (FOCAC) summit. It builds upon a 2003 initiative that initially offered tariff-free access to 190 products from resource-rich African countries such as Angola, the Democratic Republic of Congo (DRC), and Zambia. Over the years, this scheme has primarily facilitated exports of unprocessed commodities like oil, cobalt, copper, and lithium—key materials for China’s industrial needs, including electric vehicle production.
A push for agricultural diversification
China has sought to expand the scope of imports, particularly agricultural products, as part of efforts to diversify its trade relationship with Africa. At the 2021 FOCAC summit, Beijing introduced ‘green lanes’ to streamline customs processes for African agricultural goods, further expanding this initiative in 2023. The new arrangement now includes items such as avocados, coffee, chillies, cashews, sesame seeds, and seafood.
Currently, China imports around 140 products from Africa, including staple crops like rice, wheat, and sugar, as well as wood and cotton. Beijing-based consultancy Development Reimagined described the policy as a ‘big leap forward for trade coverage’ but highlighted persistent structural challenges in African export industries.
Persistent trade imbalances
Despite the expanded product list, Development Reimagined revealed deep trade imbalances. From 2005 to 2022, 27 African LDCs exported $578bn worth of goods to China under zero-tariff arrangements. However, this accounted for just 99 percent of total LDC exports, indicating that other factors—not tariffs—play a significant role in shaping trade.
Moreover, unprocessed raw materials dominate these exports. For instance, Angola’s zero-tariff exports to China averaged $21bn annually over the same period, with the DRC following at $4bn, Zambia at $2bn, and Mauritania at nearly $1bn. This pattern underscores Africa’s heavy reliance on exporting raw commodities rather than value-added goods.
‘To truly benefit, African nations must invest in manufacturing capacity to produce value-added exports,’ the report noted. It also highlighted that five countries—Angola, the DRC, Zambia, Mauritania, and Guinea—accounted for 70 percent of Africa’s total exports to China, much of it oil and minerals.
Unlocking broader potential
Advocates argue that the zero-tariff policy could be transformative if African nations capitalise on it strategically. Mandira Bagwandeen, a political science lecturer at Stellenbosch University in South Africa, views it as a chance for African products to gain a competitive edge in Chinese markets. ‘The removal of tariffs will help African products gain more traction in the Chinese market and increase their competitiveness, which is likely to increase export opportunities for African LDCs,’ Bagwandeen told the South China Morning Post (SCMP).
However, she cautioned that many African nations lack the industrial and agricultural capacity to meet the quality and quantity demands of China’s vast consumer base.
The African Continental Free Trade Area (AfCFTA) could play a pivotal role. If China’s zero-tariff arrangements were expanded to include all African countries under AfCFTA, the impact on intra-African trade and the continent’s global competitiveness could be substantial, analysts suggest.
China’s broader efforts to boost trade
In addition to zero tariffs, China is expanding its ‘green lanes’ for African agricultural products and encouraging African companies to participate in major expos like the China International Import Expo. These efforts aim to build awareness of African products and create new opportunities for exporters.
Chinese foreign ministry spokesperson Lin Jian noted that the policy supports industrial development and poverty reduction. ‘There is vast space for African brothers in China’s efforts to expand high-standard opening up. China will never be absent from Africa’s pursuit of development and revitalisation,’ he said.
Scepticism and structural challenges
Despite the optimism, sceptics remain cautious about the policy’s transformative potential. Lauren Johnston, a China-Africa specialist at the University of Sydney, argued that tariffs were not the primary barrier for many LDCs exporting to China. She pointed to Australia, which offers duty-free access to LDCs but has seen limited trade growth from those countries.
‘China may offer different opportunities as a market, but the underlying challenges remain,’ Johnston said, citing Africa’s limited infrastructure, weak industrial capacity, and governance issues as significant impediments.
A call for investment in value-added exports
To ensure long-term benefits, experts agree that African nations need to move beyond raw materials and develop their manufacturing sectors. By adding value to exports, countries could create jobs, increase revenues, and reduce their economic dependency on commodities prone to price volatility.
As China continues to deepen its economic engagement with Africa, the zero-tariff policy offers a foundation for growth. But its success will ultimately depend on Africa’s ability to address structural challenges and leverage Chinese investment to build sustainable, diversified economies.
