China’s new zero-tariff policy for Africa’s least-developed countries (LDCs) has officially come into force, according to a senior Chinese diplomat. This milestone coincides with U.S. President Joe Biden’s visit to Angola, highlighting the ongoing competition between China and the United States for influence in Africa.
Why It Matters
China and the U.S. have both sought to deepen their economic ties with Africa. China has invested heavily in the continent through its Belt and Road Initiative, though it scaled back lending in 2019 due to mounting debt defaults from countries like Zambia. More recently, Beijing has shifted its focus from loans to trade and investment opportunities.
President Biden, on his first trip to Africa, has reiterated America’s commitment to the region, promising that the U.S. is “all in on Africa.”
Key Developments
- Expanded Trade Access: China first introduced zero-tariff access for Africa’s LDCs in 2005. This week, it broadened the scope, eliminating tariffs on 140 additional products, including rice, wheat, sugar, cotton, and wood.
- Global Comparisons: The European Union offers tariff-free access to LDCs for most goods except arms and ammunition, while the U.S. provides trade benefits through specific schemes targeting African nations.
By the Numbers
China was Africa’s largest export destination in 2022, with imports worth $101 billion. It was followed by Italy ($46 billion), India ($42 billion), and Spain ($39 billion), according to UNCTAD.
The development underscores the strategic importance of Africa in global trade and geopolitics as major powers vie for economic and diplomatic influence on the continent.
