Will Chinese Trade Preferences Aid African LDCs?

The report evaluates China's duty-free treatment of 440 products from 30 African LDCs, comparing it to US and EU preference schemes. It finds that while the preferences are well-tailored to existing export capacities, their overall economic impact is modest due to severe supply-side constraints and the exclusion of key products like raw cotton.

• China has eliminated tariffs on more than 440 products for 30 African least developed countries (LDCs) with diplomatic ties to Beijing, as announced at the 2006 Forum on China–Africa Cooperation (FOCAC).
• The overall economic value of China's trade preferences for African LDCs is estimated at approximately $10.3 million per year, a figure the author describes as negligible for some countries, such as Chad, which exports none of the preferred products.
• The preferences are well-aligned with current African LDC export capacities, as 88% of the eligible products were already being exported to China in the decade starting in 2000.
• A significant omission from the duty-free list is raw cotton, which faces a 40% tariff in China; this costs the 30 LDCs an estimated $68.6 million annually, nearly seven times the gain from the existing preferences.
• The report argues that China's trade preferences are primarily diplomatic instruments intended to secure natural resources, reinforce relations with African governments, and build a voting bloc in international organisations like the UN and WTO.
• Supply-side constraints, including poor infrastructure and adverse domestic policies, are identified as the primary barriers to export growth, potentially outweighing the benefits of duty-free access.
• Compared to US (AGOA) and EU (EBA) schemes, China's rules of origin are stricter, requiring 40% local value-added, though this is less likely to hinder the primary commodities covered by Chinese preferences.
• The report notes that 95% of the 30 LDCs' exports already entered mainland China duty-free in 2005, limiting the potential for the new preference programme to create a dramatic economic impact.

APA

Minson, A. (2007). Will Chinese Trade Preferences Aid African LDCs? South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/06/19-dttp_rep_19_minson.pdf

Chicago

Minson, Adam. Will Chinese Trade Preferences Aid African LDCs? South African Institute of International Affairs, 2007. https://saiia.org.za/wp-content/uploads/2013/06/19-dttp_rep_19_minson.pdf.

Wikipedia

{{cite report |last1=Minson |first1=Adam |title=Will Chinese Trade Preferences Aid African LDCs? |publisher=South African Institute of International Affairs |date=December 2007 |url=https://saiia.org.za/wp-content/uploads/2013/06/19-dttp_rep_19_minson.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{minson2007will, author = {Minson, Adam}, title = {{Will Chinese Trade Preferences Aid African LDCs?}}, institution = {South African Institute of International Affairs}, year = {2007}, month = dec, url = {https://saiia.org.za/wp-content/uploads/2013/06/19-dttp_rep_19_minson.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }