FX.co ★ China to Eliminate Tariffs for African Nations in New Trade Pact

China is set to establish a comprehensive economic agreement with 53 African nations it shares diplomatic relations with. This new accord will abolish all tariffs, extending market access not only to the least developed countries (LDCs) but also to middle-income nations. "China is eager to welcome premium products from Africa into its marketplace," stated the foreign ministry following discussions in Changsha. While China already provides duty- and quota-free entry for many African LDCs, this new initiative is designed to create a more equitable trading environment. To aid LDCs such as Tanzania and Mali, which may face challenges from more economically advanced countries like South Africa, China has committed to offering additional support in the form of training and marketing resources. Despite the growth in China-Africa trade, there is still a significant imbalance, with a $62 billion trade surplus in favor of China last year. During a summit held in Beijing in 2023, China pledged 360 billion yuan ($50 billion) in credits and investments over the next three years, indicating a rejuvenated effort to strengthen ties with the continent in the post-pandemic landscape.