Beijing: As the world grapples with economic challenges fueled by rising unilateralism and looming trade wars, China has taken a bold step to strengthen its ties with Africa. At the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) on 5th September 2024, President Xi Jinping declared China's decision to grant zero-tariff treatment to all Least Developed Countries (LDCs) with diplomatic ties to China, including 33 African nations, for 100% of tariff lines.
According to Ghana News Agency, this initiative positions China as the first G20 member to fully extend zero-tariff treatment to LDCs. Previously, China had maintained zero-tariff coverage on 98% of products from 27 African LDCs and had established various economic agreements, including Bilateral Investment Treaties (BITs) with 34 African countries and Double Taxation Avoidance Agreements (DTAA) with 21 African nations.
China has established a comprehensive institutional framework encompassing market access, investment protection, and tax coordination, which has significantly enhanced China-Africa economic collaboration. In 2024, the trade volume between China and Africa reached 295.5 billion US dollars, marking a 6.1% year-on-year increase. The export of electric vehicles has notably surged, highlighting China's commitment to green energy cooperation with African countries. Projections indicate that China-Africa trade volume will surpass 300 billion US dollars in 2025, further bolstering Africa's industrial growth, job creation, and poverty alleviation.
The new policy also facilitates the export of African agricultural products to China through expanded 'green channels' and encourages African participation in major exhibitions like China's Canton Fair and the International Import Expo. Additionally, China is developing digital silk roads to connect African specialty products to global markets.
China's approach contrasts with another nation's use of tariffs as pressure tools, undermining global economic stability. As a member of the Global South, China emphasizes cooperation and mutual support with African countries, including Ghana. On 3rd April, the Association of China (Ghana) Mining LBG was inaugurated, marking a significant milestone in China-Ghana mining relations and supporting Ghana's economic development.
China, as the co-chair of the Official Creditor Committee for Ghana, has actively worked to resolve Ghana's debt issues. The upcoming 4th China-Africa Economic and Trade Expo in Changsha, Hunan Province, from 12th to 15th June, will offer further cooperation opportunities in clean energy, modern agricultural machinery, and more, reinforcing China's role as Africa's steadfast ally.
