China’s preferential trade policy for Africa

This briefing by the South African Institute of International Affairs (SAIIA) analyzes China's preferential trade policy for African Least Developed Countries (LDCs). While the policy is designed to align with the export capacities of these nations, the author argues that its economic impact is modest compared to its symbolic and diplomatic value in signaling China's rise as a global power and alternative to Western donors.

• China has expanded its preferential trade access for 30 African Least Developed Countries (LDCs), increasing the number of duty-free items from 190 to 440. The implementation of these preferences is assumed to take effect by the end of 2009.
• The economic value of these preferences is estimated at approximately $10 million per year, representing only about 1.2% of exports from these countries to China. About half of the beneficiary countries may see an implicit transfer of less than $100,000 per year.
• The preference scheme is well-tailored to existing African export capacities, with 88% of the listed products having been exported from African LDCs to China over the previous decade. The most valuable preferences apply to primary products or simple manufactures, such as sesame seeds, cocoa beans, leathers, copper, and cobalt.
• Raw cotton is a significant omission from the duty-free list, facing a 40% tariff in China. This protection for domestic Chinese farmers costs the 30 African LDCs an estimated implicit transfer of $68.6 million annually.
• China's rules of origin require at least 40% of value to be added in the exporting country, which is stricter than the 35% regional value-added requirement of the US African Growth and Opportunities Act (AGOA), though less strict than EU Everything but Arms (EBA) requirements.
• The policy serves a dual purpose: providing modest commercial benefits to Africa's poorest economies and acting as a diplomatic tool to reinforce ties with Africa and signal China's status as a credible alternative to Western donors.

APA

Minson, A. (2008). China’s preferential trade policy for Africa. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2008/04/chap_brf_01_minson_200802.pdf

Chicago

Minson, Adam. China’s preferential trade policy for Africa. South African Institute of International Affairs, 2008. https://saiia.org.za/wp-content/uploads/2008/04/chap_brf_01_minson_200802.pdf.

Wikipedia

{{cite report |last1=Minson |first1=Adam |title=China’s preferential trade policy for Africa |publisher=South African Institute of International Affairs |date=February 2008 |url=https://saiia.org.za/wp-content/uploads/2008/04/chap_brf_01_minson_200802.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{minson2008chinas, author = {Minson, Adam}, title = {{China’s preferential trade policy for Africa}}, institution = {South African Institute of International Affairs}, year = {2008}, month = feb, url = {https://saiia.org.za/wp-content/uploads/2008/04/chap_brf_01_minson_200802.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }