(Economist) China is trying to win over Africa in the global trade war

At China Mall , a vast supermarket in Kampala, Uganda’s capital, Rose Ahurra picks up a small turquoise squirrel. The toy flashes as she puts it in a trolley laden with towels, clothes, containers and an air fryer. The purchases indicate her place in the Ugandan middle class, which has flocked to China Mall since it opened earlier this year. “The prices are fair and I no longer have to go to lots of individual shops,” she explains.

But the floors of mostly Chinese goods also hint at an imbalance that worries African policymakers. Total trade between China and Africa was worth $296bn in 2024. Yet the value of what China exported west ($179bn) was much higher than what Africa sent east ($117bn). This year, partly as a result of the state support China is giving to its factories to boost the domestic economy, Chinese exports to the continent are on track to be 12% higher. African countries have long asked Beijing to make it easier to trade the other way, too. Many will have welcomed China’s announcement on June 12th that it will grant duty-free access to products from every African country except Eswatini, a tiny kingdom that recognises Taiwan.

The immediate impact may be minimal. But the policy could integrate African economies more deeply into Chinese-centred supply chains as the global economy is fragmenting. Geopolitically, China’s move is as subtle as a flashing turquoise squirrel. After 25 years America is set to end its own duty-free deal with Africa when the African Growth and Opportunity Act (AGOA) expires on September 30th. It is imposing tariffs willy-nilly, slashing aid and banning African migrants. For its biggest competitor, that is an opportunity.

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Posted in Africa, China, Economy, Energy, Natural Resources, Foreign Relations, Politics in General