China expands duty-free regime to more African countries

China has announced plans to increase the scope of products enjoying zero-tariff treatment to 98 percent for 16 least developed countries in Africa, including Rwanda, Djibouti, and Togo, starting from September 1. Wang Hudson, the Economic and Commercial Chancellor at the Chinese Embassy, provided insight into the growing trade relations between China and Africa. In 2021, the trade between China and Africa surpassed 254 billion US dollars, marking a significant 35 percent increase from the previous year. Additionally, China's foreign direct investment into Africa during the first nine months of 2021 amounted to 2.6 billion US dollars, reflecting a 10 percent increase. Overall, China's investment in Africa stands at approximately 4.74 billion US dollars, solidifying its position as the leading trading partner for many African countries. The trade primarily consists of agricultural products, minerals, and finished goods, with major trading partners including South Africa, Nigeria, Angola, Egypt, and the Democratic Republic of the Congo, accounting for 50 percent of the total trade volume. The burgeoning trade relationship between China and Africa underscores the continent's rapid development and China's status as a major global market. Both parties stand to gain significantly from the trade opportunities, with China providing duty-free access to African countries and encouraging Chinese investors to enhance production standards and scale up their operations in the continent. However, challenges persist, particularly regarding the limited range of products exported by African countries to China and the stringent quality standards imposed by Chinese authorities. To address these challenges, China has pledged to increase the number of African countries eligible for zero-tariff treatment and support initiatives to improve the quality and variety of exports to China. In negotiations with African countries like Rwanda, China demonstrates a cooperative and friendly approach, offering favorable terms and actively promoting African products in the Chinese market. As a result, countries like Rwanda have seen increased demand for their agricultural products in China, leading to higher profits for farmers and traders. The collaborative efforts between China and African nations in the realm of trade are poised to bolster economic growth and strengthen bilateral relations, creating opportunities for mutual benefits and sustainable development.