China strengthens economic relations with Africa

China has devised a way to ,,economically defeat” US President Donald Trump. According to a publication in The Wall Street Journal, Beijing is canceling customs tariffs on goods from Africa.

This politically ,,cunning” move contrasts sharply with the massive imposition of customs tariffs by the US, the material shows.

Starting from May 1 this year, Beijing has eliminated customs tariffs on all imports from 53 of 54 African countries, trying to gain business and influence on the continent. The state of Eswatini is the only one that does not enjoy this benefit, as it maintains diplomatic relations with Taiwan.

,,From a certain angle, the plan is quite ingenious’’, said Ronak Gopaldas, an economist at Signal Risk, a consulting firm specializing in political risk in Africa. ,,Beijing will strengthen its image as a stable and reliable partner in the face of Trump’s pragmatic position’’.

China is securing its supply chains for vital minerals – such as coltan, cobalt and copper – and offering new opportunities to its logistics and infrastructure companies. In Kenya, for example, the authorities see this agreement as a chance to reduce the $4 billion trade deficit with the Chinese, relying on exports of exotic fruits, tea and coffee.

However, some economic experts urge greater caution. The measure will not change the asymmetric nature of trade relations in the short term. African countries will essentially remain exporters of raw materials and importers of finished goods from China.