China opens up market to 4,000 African products

By William Gitonga in Shanghai

China has lifted import duties for some African products to open up its markets and fast track achievement of millennium development goals (MDGs).

Chinese Commercial Counselor in charge of Western Asian and African Affairs Xie Yajing told The Standard the Chinese Government would establish an African Exhibition centre to shore up the visibility of African goods in her country and increase market access.

"China has signed non-tariff agreements with more than 20 African countries to allow importation of more than 4,000 products and commodities duty free," said Ms Yajing.

Sino-Africa trade relations are warming up at a time when China has slapped anti-subisdy tariffs to some products from the US. This is the first time China has imposed duties on agricultural imports on the grounds of alleged subsidies to farmers.

Two weeks ago, the Chinese Government said it would levy anti-subsidy duties of up to 31.4 per cent on chicken products that have received US government subsidies. The new tariffs come on top of a February move to impose anti-dumping duties of 105.4 per cent on imported US chicken products.

Yajing said exports from China to Africa had not shown changes, but 23 African countries had increased exports to China.

"Trade volume with African countries in the first quarter of this year increased by 25 per cent to $27.8 billion over a corresponding period last year," she said.

Trade imbalance

Trade between Kenya and China has been in favour of China over the years, with an average trade imbalance of Sh18 billion in the last five years. Although trade imbalance is in favour of China, Kenya’s exports to the east Asia nation increased from $6.7 million in 2003 to $29.09 million in 2008, representing an average annual increase of 34.14 per cent over the period.

Kenya’s major imports from China include textile, electronics and footwear. Exports include cut flowers, tin ores and concentrates.

Trade imbalance has been blamed on the distance between China and Africa that makes exports uncompetitive due to transportation costs and African nations (and companies) making products that are identical to those manufactured by Chinese firms.

Yajing said her Government would also champion achievement of MDGs by increasing concession credit and commercial loans to Africa to improve infrastructure and other development projects.

China has also pledged to enhance trade ties with the continent through the Sino-Africa Fund by offering loans to small and medium enterprises.

Trade imbalance

"We will extend grants and aid without political conditions to improve infrastructure, education and health to help African countries improve conditions for independent development," Yajing said.

During the Fourth Chinese Ministerial Conference held in November last year, it was solved that China would boost Africa’s development agenda by increasing aid in agriculture, environmental protection, improvement of infrastructure, support development of markets and trade, spur up medical and education sectors.

"China has supported more than 900 rail and roads projects and helped train more than 30,000 rail personnel," said Yajing.

Also on the cards to help African nations achieve MDGs goals is availing incentives to Chinese firms to import products from Africa.