China sharpens edge in global trade with zero-tariff deal for developing world

With all tariffs for ‘least developed countries’ scheduled to be removed, China is positioning itself as a trade leader for the Global South

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China’s zero-tariff deal with a group of developing countries is likely to cement trade relations and increase its standing, analysts said. Photo: Xinhua

Published: 6:30pm, 29 Oct 2024Updated: 9:11am, 30 Oct 2024

China will eliminate tariffs for goods from countries classified as the world’s least developed starting in December, a move expected to lower shipping costs from parts of Africa and Asia and give Beijing more sway in global trade.

The zero-tariff treatment for the group of mostly small, non-industrialised countries poses little threat to China’s manufacturing-intensive economy, analysts said, and gives Beijing an edge in emerging markets as the US and Europe attempt to stem the flow of Chinese goods into their own backyards.

The scheme will cover all countries the United Nations considers “least developed” that have diplomatic ties to China, the official Xinhua News Agency reported, citing the Customs Tariff Commission of the State Council.

Of the 43 countries that stand to benefit, 33 are in Africa. The others are Yemen in the Middle East, Kiribati and the Solomon Islands in the South Pacific and Afghanistan, Bangladesh, Cambodia, Laos, Myanmar, Nepal and East Timor – all on the Asian continent.

The tariff scheme, set to take effect on December 1, will apply to every import category, the commission said.

The removal of tariffs means these countries would pay less to ship crops, fruits, seafood or commodities to China – an enormous market – and exporters would in turn save on the transport of household goods, smartphones and electric vehicles to countries that reciprocate.

China does want to have more solidarity with the Global South, and there’s definitely this idea of power projection

Liang Yan, Willamette University