China has officially implemented zero-tariff access for the least developed countries (LDCs) in Africa this week, a senior Chinese diplomat confirmed.
The move comes as U.S. President Joe Biden embarks on a visit to Angola.
The new initiative is a significant development in the ongoing competition for influence in Africa between China and the United States.
China has previously lent billions through its Belt and Road Initiative, but scaled back in 2019. Meanwhile, the U.S. has struggled to make headway on the continent.
China’s shift from direct lending to trade and investment began in 2021, after some African nations defaulted on loans, including Zambia in 2020.
As Biden tours Africa, he has reaffirmed America’s commitment to the region, stating that the U.S. is “all in on Africa.”
This duty-free access, which applies to over 140 products including rice, wheat, and cotton, marks a significant expansion of China’s earlier tariff-free initiatives for African LDCs.
The European Union already offers similar tariffs, excluding arms and ammunition, while the U.S. has its own trade initiatives for Africa’s LDCs.
In 2022, China emerged as the largest export destination for Africa’s developing nations, surpassing Italy, India, and Spain.
Critics, however, argue that China’s relationship with Africa remains exploitative, focusing on raw materials like oil and cobalt, while selling back higher-value goods.
Hannah Ryder, CEO of Development Reimagined, believes China’s zero-tariff policy could strengthen its ties with Africa.
She highlighted that “follow through of promises” is one of the key factors making China an attractive partner for the continent.