Africa: China-Africa Economic Relations Reframed - Zero-Tariff for Africa

The tremendous growth of Africa’s technology sector has increased interest in how AGOA can help accelerate investment and trade in IT.
opinion

The diplomatic relationship between China and Africa has now reached its 70th anniversary. Over these decades, economic, political, technological, and people-to-people ties have reached a high level of development. Historically, both China and Africa were victims of colonial powers. Unlike many developed countries, China did not participate in the slave trade or the colonization of African nations. African countries therefore view China as a champion of the developing world, promoting their interests through various multilateral platforms and institutional frameworks.

The People's Republic of China (PRC) was excluded from the United Nations for 22 years. On October 25, 1971, the United Nations General Assembly, at its 26th session, adopted a resolution, recognizing the PRC as the legitimate representative of China and granting it permanent membership in the Security Council.

It is noteworthy that 26 African nations supported this resolution. Subsequently, the relationship between China and Africa has experienced substantial growth. African countries also endorsed China's entry into the World Trade Organization (WTO) in 2001, which was followed by a rapid expansion of China's economy. For the past 17 years, China has maintained its position as Africa's primary trading partner.

Despite the increasing volume of trade between China and Africa, concerns remain regarding the trade balance, which appears to favor China.

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In response to this concern, China has introduced zero-tariff treatment for African countries, aiming to promote a more balanced and mutually beneficial trade relationship.

The United States also implements similar initiatives, specifically the African Growth and Opportunity Act (AGOA). However, these opportunities are extended to a select group of African nations, and eligibility can be suspended due to concerns regarding human rights violations, breaches of the rule of law, or political instability.

Personally, I believe that AGOA is more of a political tool than an economic one.

Similarly, the European Union also has a program called Everything But Arms (EBA) for some countries.

China's Global Development Initiative emphasizes that the current global system should benefit least developed and developing countries. In line with this vision, China has taken substantial measures on tariff issues to support the Global South. In 2024, China granted zero-tariff treatment to 33 least developed African countries, demonstrating its continued commitment to openness.

President Xi Jinping reaffirmed this commitment in a congratulatory message to the 39th African Union Summit on February 14, 2026, stating that China would fully implement zero-tariff treatment for 53 African countries starting May 1, 2026. This extends the same benefits to the remaining 20 African countries that maintain diplomatic relations under the One China Policy. This policy shift represents a landmark development that could reshape global trade dynamics.

This opportunity holds significant economic potential for African countries. It allows them to export their products to China without tariff barriers. The policy, which will run from May 1, 2026, to April 30, 2028, enhances market access and strengthens economic partnerships. It is also likely to attract increased investment into Africa, as companies in the world may seek to capitalize on these favorable trade conditions.

China's decision addresses one of Africa's most pressing challenges--market access. The move has been widely welcomed by African governments.

United Nations Secretary-General Antonio Guterres praised the initiative and called on other developed countries to adopt similar measures. He emphasized that Africa should not be disadvantaged by restrictive trade policies.

Likewise, African Union Commission Chairperson Mahmoud Ali Youssouf described the decision as timely, particularly in light of global uncertainties such as conflicts in the Middle East that disrupt trade flows. This initiative is expected to play a vital role in strengthening China-Africa economic and trade relations.

At a time when multilateralism is weakening and protectionism is on the rise, China's zero-tariff policy signals solidarity with Africa during a period of global economic uncertainty. To ensure effective implementation, China's customs authority issued detailed rules of origin on April 29, covering certification, shipment requirements, and customs procedures.

The African Continental Free Trade Area (AfCFTA) provides an important framework to align intra-African trade with China's zero-tariff policy. In his keynote address, China's President highlighted China's support for AfCFTA through initiatives such as connectivity projects and the establishment of an expert group on economic cooperation with the AfCFTA Secretariat.

China's experience in developing a digital economy also offers valuable lessons. With the digital economy contributing more than 30 percent of China's GDP, companies such as Baidu, Alibaba, and Tencent have become global leaders. China's e-commerce ecosystem is vast, dynamic, and increasingly cashless, supported by widespread electronic payment systems and a large base of online consumers and entrepreneurs.

Integrating technology into China-Africa trade relations will further enhance economic cooperation. Alongside zero-tariff treatment, strengthening the digital economy can facilitate technology transfer and innovation. Expanding successful infrastructure projects, such as the Addis Ababa-Djibouti Railway under the Belt and Road Initiative, can also improve trade connectivity across the continent and with China.

Finally, enhancing the capacity of private sector actors engaged in import and export activities is essential. These actors serve as key drivers of economic relations alongside governments. Promoting experience-sharing through trade fairs, exhibitions, and capacity-building programs will enable African businesses to fully utilize the opportunities created by zero-tariff access to the Chinese market.

The zero-tariff policy marks a significant turning point in China-Africa economic relations.

African countries now have access to one of the world's largest markets. This opportunity can stimulate both export growth and industrial development. It also creates favorable conditions for increased foreign investment in Africa. The initiative reinforces the importance of South-South cooperation in global trade. At a time of rising protectionism, it highlights the value of openness and partnership.

To maximize these benefits there is a need to have strong institutional and private sector capacity. Aligning this policy with AfCFTA can further strengthen both intra-African trade integration and trade between China and Africa in the twenty first century.

Melaku Mulualem K. is the director general for Training and Consultancy Directorate at the Institute of Foreign Affairs of Ethiopia.

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