China extends tax exemption to products from Africa

China is to extend zero tariff treatment to 95 per cent of products from the least developed countries in Africa as it wrestles with the United States and the European market for clout.

The phase in starts next year with the range of goods that will be tax exempt in the Chinese market growing tenfold from 470 to 4700, China’s minister for commerce Chen Deming said following the conclusion of the ministerial conference on China Africa Cooperation in Egypt.

“We will phase in zero-tariff treatment to 95 per cent of the products from the least developed African countries. Within next year, we will exempt the tariff on 4,700 items, which is 10 times the current 470 items.”

He said with China’s zero-tariff policy, more and more products made in Africa, including green agricultural and high quality industrial products, will enter into Chinese market with favourable price to serve Chinese people’s demands.

Chen had an interview with Xinhua after attending the fourth Ministerial Conference of the FOCAC, which was held in the Egyptian coastal city of Sharm el-Sheikh on Sunday and Monday.

Nearly 100 ministers from 49 African countries and China participated in the conference.

Infrastructure assistance

Chen said one of the major achievements of the conference was that China and African countries reached agreement on a new action plan for the coming three years.

“The eight new measures announced by Premier Wen Jiabao are adapted to the current international situation and the real demands of African countries,” said Chen, adding “We will keep strengthening our help to Africa with our own development.”

According to Chen, the trade between China and Africa developed rapidly with an annual increase rate of 30 percent in the past eight years, and the trade volume exceeded 100 billion US dollars in 2008.

Nearly 1,600 Chinese enterprises have started business in African countries with a direct investment stock of 7. 8 billion dollars, and their business range from manufacture and construction to agricultural processing and resources development.

Since establishing diplomatic relations with African countries more than 50 years ago, China has provided various kinds of aid to 53 countries with more than 800 sets of projects.

Altogether, 306 debts owed by 34 African countries were cancelled, 17,000 Chinese medical personnel were dispatched to Africa and 30,000 African people received training process.