Zero tariffs will inject strong momentum into China Africa cooperation and African development

Starting from May 1st, China has fully implemented zero tariffs on 53 African countries with diplomatic relations, making it the first major economy in the world to achieve full coverage of zero tariffs on African countries with diplomatic relations. What is the significance of this important measure for inheriting the historical friendship between China and Africa and deepening mutually beneficial cooperation between China and Africa? What new opportunities will it bring to promote China Africa economic and trade cooperation and advance modernization in Africa? Currently, protectionism is rampant. What signal does China's move send to the world?

In this issue of "Xinhua News Agency International Focus", Liu Fangqiang, Chief Reporter of Xinhua News Agency Addis Ababa Branch, Xu Zheng, Chief Reporter of Harare Branch, He Wenping, Researcher at the Institute of West Asian and African Studies of the Chinese Academy of Social Sciences (China Africa Research Institute), Song Wei, Professor at the School of International Relations of Beijing Foreign Studies University, and Yang Baorong, Director of the Economic Research Office of the Institute of West Asian and African Studies of the Chinese Academy of Social Sciences, will provide in-depth interpretations of these issues.

Xinhua News Agency: Starting from May 1st, China has fully implemented a zero tariff policy towards 53 African countries that have established diplomatic relations with China. What is the significance of this important measure for inheriting the historical friendship between China and Africa and deepening mutually beneficial cooperation between China and Africa?

He Wenping, a researcher at the West Asia and Africa Institute of the Chinese Academy of Social Sciences (CAAS), stated that China is the world's first major economy to implement unilateral, fully covered zero tariffs on all African countries with diplomatic relations, as well as all least developed countries with diplomatic relations. China's ability to exert such great effort in this matter is the latest manifestation of China's high-level opening-up and active expansion of independent opening-up, and a higher level and higher level of opening-up to the outside world.

China Africa relations are now entering the best period in history. By the end of 2024, China will implement zero tariffs on more than 40 least developed countries around the world, including Africa, with 33 of them being in the first tier. In recent years, we have been building a community with a shared future for China and Africa in accordance with the consensus under the framework of the Forum on China Africa Cooperation, and have been steadily advancing along the path and pace.

Now, China has further opened the door to openness, not only for the least developed countries, but also for relatively strong economies such as South Africa, Nigeria, and Egypt.

The release and promotion of the non-zero tariff policy is an important measure taken by the Chinese government to implement global development initiatives, promote industrialization and agricultural modernization in Africa.

The implementation of this policy will undoubtedly strengthen the construction of a 24/7 China Africa community with a shared future in the new era, and inject strong impetus into promoting China Africa trade and investment, as well as advancing African development.

Professor Song Wei from the School of International Relations at Beijing Foreign Studies University: Coinciding with the 70th anniversary of the establishment of diplomatic relations between China and Africa, the implementation of the zero tariff policy has positive significance for the history and future inheritance of China Africa cooperation.

On the one hand, zero tariff treatment is an institutionalized continuation of the history of China Africa cooperation. As early as 70 years ago, China selflessly supported African national liberation, economic independence, and independent development. Over the past 70 years, after experiencing the vicissitudes of the world, the friendship between China and Africa has become even stronger. In the current face of Africa's development and transformation, China's implementation of zero tariff treatment is actually empowering Africa's development through trade, promoting Africa's transformation, industrialization, and modernization.

On the other hand, zero tariff treatment indicates the transformation and upgrading of the China Africa cooperation model. Over the past 70 years, China Africa cooperation has mainly focused on project cooperation such as infrastructure construction, agricultural cooperation, and poverty reduction projects. In the future, through trade empowerment, China Africa cooperation will be expanded from project cooperation to industrial synergy, forming a comprehensive and three-dimensional China Africa cooperation.

Thirdly, zero tariff treatment is also a comprehensive empowerment of Africa's independent development through trade, driving the extension of Africa's industrial chain. At the same time, empowering African youth through trade, promoting employment in Africa, and enhancing Africa's overall capacity for independent development.

Yang Baorong, Director of the Economic Research Office at the West Asia and Africa Institute of the Chinese Academy of Social Sciences: Firstly, since the launch of the Forum on China Africa Cooperation in 2000, the cooperation measures have become increasingly refined, and the areas and goals of cooperation between the two sides have been further consolidated. The implementation of non-zero tariffs is indeed a further action to address the long-standing concern of both sides on African development issues, and to solve the dilemma of "growth without development", based on the common cooperation foundation and characteristics between China and Africa. It is a practical and tangible cooperation.

Secondly, China's zero tariffs on Africa are exploring a new path to promote bilateral development between China and Africa, and to explore a path for the global South, including Africa, to achieve common modernization. With the implementation of non-zero tariffs, more practical experience will provide us with new theoretical basis or practical experience for further exploring the common modernization of China and Africa.

Finally, mutual trust between both parties will be further enhanced. For a long time, China has supported Africa's development in its own way and solved bottlenecks in Africa's development. The principle of non-zero tariffs emphasizes that there are no political conditions attached to the import end, no long arm jurisdiction is set up for the operation end, and the allocation end is the active establishment of a coordination mechanism for future economic and trade cooperation between China and Africa; In terms of guidance, we hope to promote the integrated development, industrialization, and modernization of Africa through zero tariff policies.

Xinhua News Agency: What new opportunities will the zero tariff measures bring to China Africa economic and trade cooperation and local economic development in Africa?

He Wenping: The new measures have inspired people from various industries in African countries, especially those in the economic and trade sectors that focus on exporting to the Chinese market. African businessmen I know who have been engaged in economic and trade activities in China for a long time, such as Nigerian businessmen in Yiwu and Guangzhou, are particularly happy and say that they have truly enjoyed the benefits.

The new measures are also good for the Chinese people. You can buy African coffee and high-quality South African red wine at a low price. Before, when I went to South Africa, I often brought back a bottle myself, so that I could buy high-quality African products at a cheap price in the domestic market in the future.

At the same time, it has an extension effect, driving deep processing of products and advancing the value chain through trade growth. The new measures will also drive Chinese companies to invest and build factories in Africa, such as processing cocoa into chocolate and entering the Chinese market as processed products, achieving a circular and progressive function. Undoubtedly, the implementation of the zero tariff policy will push China Africa trade to a new height.

Song Wei: Overall, this full coverage of zero tariffs for non diplomatic countries will bring unprecedented opportunities for China Africa cooperation. On the one hand, creating trade opportunities for China Africa cooperation and achieving trade expansion. A large number of characteristic products from Africa, such as cocoa, sesame, aquatic products, etc., will enter the Chinese market. On the other hand, for the vast majority of Chinese consumers, it has also increased their choices and enriched their lives.

At the same time, zero tariffs also create opportunities for investment and financing cooperation between China and Africa. With the improvement of the business environment in Africa, it will further stimulate the investment enthusiasm of Chinese enterprises and create more market share and development opportunities for them.

Xinhua News Agency: What is the significance of the implementation of this policy for the local economic development in Africa? How do the industry and local residents evaluate this policy?

Xu Zheng, Chief Reporter of Xinhua News Agency Harare Branch: I am Xu Zheng, a reporter from Xinhua News Agency. I am currently located in Harare, the capital of Zimbabwe. Through our interviews and observations over a period of time, we have found that the Zimbabwean government and people are very welcoming of China's zero tariff policy.

For many years, Zimbabwe's exports to China have mainly included mineral products and agricultural products such as tobacco, citrus, blueberries, avocados, etc. The Zimbabwean government and businesses have stated that China's zero tariff policy will further promote the export of Zimbabwean products to China and expand the scale of products. But at the same time, it also indicates that this policy dividend will force Zimbabwe's related industries to upgrade and meet the demand for exporting products to China.

Liu Fangqiang, Chief Reporter of Xinhua News Agency Addis Ababa Branch: I am Liu Fangqiang, a reporter from Xinhua News Agency. I am currently in Addis Ababa, the capital of Ethiopia. At present, China is Ethiopia's largest trading partner, with a bilateral goods trade volume of approximately 3.5 billion US dollars in 2024, a year-on-year increase of 17.5%. The goods imported by China from Ethiopia mainly include sesame, coffee, textiles, leather products, etc. The implementation of zero tariffs will undoubtedly promote the export of Ethiopian products to China, create more employment opportunities for the local area, and increase foreign exchange earnings.

Xinhua News Agency: From the perspective of African development, how will the implementation of zero tariffs on 53 countries contribute to Africa's modernization process?

Song Wei: The zero tariff policy is to unlock Africa's endogenous development capacity through external market traction, accelerate and promote Africa's modernization and industrialization transformation. Specifically, zero tariff treatment can directly expand African exports and optimize trade structure.

For a long time, most African countries have focused on exporting bulk commodities, and zero tariff treatment empowers trade, extending Africa's industrial chain, optimizing and upgrading Africa's trade structure, and accumulating more foreign exchange sources for Africa's development.

On the other hand, zero tariff treatment will also promote industrialization transformation in Africa. Specifically, trade can stimulate Africa's endogenous development momentum, independently enhance the added value of products, and extend to various links and fields related to industry.

At the same time, zero tariffs will further promote the integration of the African continent. In fact, even before the outbreak of the epidemic, the African continent had already established free trade zones, but in recent years, the expected growth in intra African trade volume has not been achieved. The reason for this is that the degree of homogenization of products in African countries is relatively high. Zero tariffs will further empower Africa's industrial processing capabilities, promote the development of African countries' industrialization systems based on their own resource endowments, and promote regional integration of the African continent through trade.

In addition, it will also have a strong effect in the field of poverty reduction. Empowering the development of industrial capacity through trade will undoubtedly create a large number of employment opportunities, empower African women and youth, and contribute greater multiplier effects to poverty reduction in Africa.

Xinhua News Agency: Have you observed any "first mover" industry trends in your daily interviews?

Xu Zheng: The Zimbabwean government and related enterprises are fully prepared to welcome the zero tariff policy. In April of this year, the government held a product matching meeting specifically for Chinese agricultural product buyers. At the meeting, Chinese buyers reached multiple cooperation agreements with local farms and farmers.

At the just concluded Zimbabwe International Expo, we also encountered many Zimbabwean artisans, agricultural product manufacturers, and exhibitors. They stated that they are currently actively preparing export documents in anticipation of further expanding product exports. Many exhibitors have expressed that they will participate in more exhibitions held in China this year to expand the visibility of Zimbabwean related products in the Chinese market, promote their products well, and look forward to further expanding product exports.

Liu Fangqiang: By 2025, the United States will impose a 10% tariff on Ethiopia, weakening the country's competitiveness in exporting goods. Therefore, coffee and horticultural product exporters in Ethiopia are adjusting their export strategies and actively seeking new markets. They welcomed China's zero tariff measures as there are billions of potential buyers in China.

According to statistics from the Ethiopian Coffee and Tea Authority, the Chinese coffee market is vast, with China becoming the seventh largest importer of Ethiopian coffee in 2023 and rising to fourth place by 2025. In addition, I would like to share with you a set of numbers. Ethiopian Airlines is one of the largest airlines in Africa, currently operating up to 83 flights per week from Addis Ababa, the capital of Ethiopia, to 11 cities in China, including passenger and cargo routes, providing a logistics foundation for the export of Ethiopian and even African products to China.

Xinhua News Agency: Currently, unilateralism and protectionism are rampant, putting pressure on global trade growth. What policy signals does China send by continuously expanding its independent opening-up and implementing zero tariffs on non African countries? What is the significance of supporting global southern cooperation and maintaining the multilateral trading system?

He Wenping: From the perspective of African development, there are many challenges facing us now. The international geopolitics is constantly tense. The outbreak of the Russia-Ukraine conflict has made Africa face food crisis, fuel crisis and financial crisis.

The war between the United States and Israel against Iran has led to the closure of the Strait of Hormuz, which has impacted the global supply chain and also affected Africa, causing difficulties in exporting goods and importing some essential items. In addition, after Trump returned to the White House, the United States wielded the tariff stick around the world, engaging in trade wars and tariff wars. Even in relatively underdeveloped regions such as Africa, the tariff stick was still wielded, and all African countries were subject to tariffs. Lesotho, a small country in southern Africa, has been subject to a maximum tariff of 50% because it is the "capital of jeans" and produces a large amount of jeans for export to the US market. In this situation, the African economy is facing enormous challenges.

Now that China has introduced a zero tariff policy, it is urgent for Africa, which is equivalent to opening up China's huge market with a population of 1.4 billion to African goods. We independently open up and transform China's large market into a great opportunity to promote Africa's development.

Within two years, we will also sign an economic partnership agreement with Africa for common development, which fully reflects China's true, friendly and sincere policy concept and correct view of righteousness and benefit in its cooperation with Africa.

Song Wei: The zero tariff policy actually sends the most positive policy signal to the current trade protectionism.

Firstly, we firmly demonstrate to the world that China will continue to expand its high-level opening-up to the outside world, and China's door will only open wider and wider, actively expanding market access. Currently, trade protectionism is rampant, and decoupling and disconnection are spreading globally, which actually undermines the investment confidence of global capital. In this context, China continues to expand its opening-up to the outside world, and we share the huge market dividends of China with our African development partners, empowering the development of the world economy through our own opening-up.

Secondly, we also send a more positive signal to the world: China has always supported inclusive and inclusive globalization. Currently, trade protectionism is rampant, and our zero tariffs on Africa are aimed at the 53 countries that have established diplomatic relations with Africa. We are not exclusive and do not engage in small circles.

Thirdly, we are also releasing the greatest certainty for the world in the context of uncertain globalization. We will continue to open up the market with concrete actions, optimize the business environment, reduce non-tariff and tariff barriers, and promote trade liberalization and facilitation. We are injecting the greatest certainty into the world economy with the utmost sincerity.

The zero tariff policy has a particularly significant demonstration significance for the global South. The challenges facing the development of countries in the global South are further increasing, and the development resources available are further shrinking. We are fully committed to empowering the global South, and through cooperation with developing countries, we will further unlock bottlenecks in the development of the global South and boost confidence in its development.

Xinhua News Agency: How do African public opinion and the international community evaluate China's move? What important significance do you think it holds?

Liu Fangqiang: African public opinion and the international community have greatly appreciated China's move. During the African Union summit in February this year, UN Secretary General Guterres expressed appreciation for China's non-zero tariff measures and called on all developed countries and countries with strong economic strength to take similar measures. He believes that Africa needs to achieve free trade for its goods, and restrictive trade and tariff policies have affected the competitiveness of African products.

Not long ago, the Chairperson of the African Union Commission, Yusuf, also stated that China's decision is important and timely, and will help Africa cope with global challenges. He said that China's measures towards non-zero tariffs come at a time when protectionism is on the rise and global crises are intensifying. The African economy is fragile and is bearing the impact of global uncertainty. He praised China's measures towards non-zero tariffs as a brotherly gesture that will help Africa address current and future economic challenges, such as supply chain disruptions and increased food security risks.

Xu Zheng: Regarding the zero tariff policy this time, various sectors and public opinion in African countries have expressed great welcome. They stated that this policy highlights China's determination to further expand its high-level opening-up to the outside world, and is also a vivid practice of "South South cooperation". They stated that after the implementation of China's zero tariff policy, it will further expand the scale of China Africa trade and elevate pragmatic cooperation between China and Africa to a new stage. They hope that African governments and related enterprises can further expand their production scale, improve their industrial chains, and transform policy dividends into sustained export capabilities. This is also the focus of the next steps for African governments and related enterprises.