In a significant move to bolster global trade and support economic development, China has granted zero tariffs to Least Developed Countries (LDCs) with which it has established diplomatic relations, including 33 African nations. The new policy takes effect from December 1.
China’s Foreign Ministry Spokesperson Lin Jian announced the initiative, stating that it positions China as the first major developing country and major economy to eliminate tariffs for LDCs. “This step reflects China’s commitment to open its market further and foster mutually beneficial trade relationships,” Lin said.
The policy change is anticipated to have a profound impact on trade between China and the least developed nations, particularly in Africa. Christopher Mutsvangwa, a Politburo member and Secretary for Information and Publicity of Zimbabwe’s ruling Zimbabwe African National Union-Patriotic Front (ZANU PF), welcomed the move. “It demonstrates China’s willingness to further open its market and will promote China-Africa trade,” Mutsvangwa commented.
Economists suggest that the removal of tariffs will provide LDCs with greater access to the Chinese market, encouraging exports and aiding in economic growth. The policy aligns with China’s broader efforts to support developing countries and strengthen South-South cooperation.
The move is expected to diversify the range of goods available in China while providing LDCs with opportunities to increase their foreign exchange earnings, create jobs, and reduce poverty. Observers note that this could be a game-changer for many of these countries as they navigate the challenges of global trade dynamics.
As China continues to play an influential role in global affairs, this tariff abolition signifies a strategic partnership with LDCs, emphasizing solidarity and shared growth. The international community will be watching closely to assess the long-term impacts of this policy on global trade patterns.
Reference(s):
cgtn.com
