In 2022, China took steps to boost trade with Africa by removing tariffs on 98% of products imported from 18 African countries. Despite this initiative, the trade balance is still in favor of China, with exports dominated by finished products.
According to data released by China’s General Administration of Customs, trade between China and Africa reached $156.4 billion in the first seven months of 2023, up 7.4 percent from at the same period of the previous year. Chinese exports to Africa increased by 20% to about $97.8 billion, while Chinese imports from Africa amounted to $58.6 billion.
Chinese exports to Africa are mainly composed of finished products such as textiles-clothing, machinery and electronics. In contrast, African exports to China are dominated by raw materials such as crude oil, copper, cobalt and iron ore. This leads to a persistent trade imbalance in favor of China.
In a bid to rectify this situation, China announced at the Ministerial Conference of the Forum on China-Africa Cooperation in 2021 its intention to increase its imports of African agricultural products. By removing tariffs on many products imported from Africa, China hopes to reduce this trade surplus and promote more balanced trade cooperation.
However, it is important to note that the measures taken by China do not necessarily guarantee an immediate result. Persistent challenges such as limited infrastructure, non-tariff barriers and limited trade capacity in some African countries may hamper the growth of trade with China.
For this trade cooperation between China and Africa to be truly beneficial, it is essential that African countries continue to invest in the development of their infrastructure and productive capacity. This will allow them to diversify their exports and take greater advantage of the opportunities offered by China.
In conclusion, despite China’s efforts to promote more balanced trade cooperation with Africa, the trade imbalance persists. It is crucial that African countries continue to invest in their economic development in order to fully benefit from this commercial relationship with China