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Upgrading Economic Ties
New agreements and projects expand the scope of China-Africa cooperation across all sectors
By He Wenping | VOL. 17 July 2025 ·2025-07-01

A view of the main venue of the fourth CAETE in Changsha, Hunan Province, on 12 June (HU FAN)

This year marks the 25th anniversary of the founding of the Forum on China-Africa Cooperation (FOCAC). It is also the inaugural year for implementing the outcomes of the 2024 FOCAC Summit in Beijing. 

In June, Changsha, Hunan Province, hosted a series of China-Africa engagements poised to deepen their ties further. 

On 11 June, the Ministerial Meeting of Coordinators on the Implementation of the Follow-up Actions of FOCAC took place in Changsha. Chinese President Xi Jinping sent a congratulatory letter expressing hope for deeper cooperation and a stronger China-Africa community with a shared future. The meeting adopted the China-Africa Changsha Declaration on Upholding Solidarity and Cooperation of the Global South, emphasising the common position of China and Africa in promoting international fairness, justice, and enhanced Global South cooperation. 

From 12 to 15 June, Changsha hosted the fourth China-Africa Economic and Trade Expo (CAETE). Under the theme “China and Africa: Together Towards Modernisation,” the expo showcased collaboration in key sectors such as infrastructure, agriculture, clean energy, and the digital economy. It also featured dialogues and matchmaking activities to further advance China-Africa economic and trade ties.  

Zero tariffs 

Article 8 of the Changsha Declaration contains a major commitment from China: through negotiating and signing the agreement of China-Africa Economic Partnership for Shared Development, China is prepared to expand zero-tariff treatment to cover 100 percent of tariff lines for all 53 African countries with diplomatic relations with China, welcoming quality African products into the Chinese market. 

This builds on China’s earlier decision, effective from 1 December 2024, to grant zero-tariff treatment to all products from the world’s least developed countries, including 33 African nations. That’s a significant step in opening China’s market and providing greater opportunities for Africa to export to China. 

China has been Africa’s largest trading partner for 16 consecutive years. The comprehensive zero-tariff policy for all taxable products is expected to further strengthen trade cooperation and ties between China and Africa. 

In stark contrast, US President Donald Trump initiated indiscriminate tariff and trade wars early in his presidency, affecting even economically underdeveloped African countries. Nations including Lesotho, Madagascar, Mauritius, Botswana, Angola, Algeria, and South Africa faced additional tariffs ranging from 30 percent to 50 percent. China’s approach aligns with its advocacy for free trade, while the Trump administration pursues protectionism. 

Stepping up cooperation 

The Blue Book of China-Africa Economic and Trade Cooperation: Development Report (2025) released during the fourth CAETE notes that China-Africa trade is undergoing significant transformation. The trade model is gradually shifting towards diversification, higher value addition, and greater technology intensity. Looking ahead, cooperation opportunities are expected to expand in key sectors such as industry, agriculture, the digital economy, new infrastructure, and green energy. 

The blue book identifies several major trends. In agriculture and food industries, emphasis is shifting from raw material exports to deep processing. In manufacturing, product exports are increasingly replaced by localised production within Africa. Emerging sectors such as the digital economy and technology services are gaining momentum. Traditional trade modes are evolving, with cross-border e-commerce becoming an important new channel. These changes are driven by Africa’s industrialisation, China’s economic upgrading, and the Belt and Road Initiative. 

Despite abundant agricultural and mineral resources, Africa has long struggled with the legacy of a monocultural economy reliant on raw material exports, a colonial inheritance. Consequently, industrialisation has remained relatively underdeveloped. But, over 20 years of steady China-Africa economic and trade cooperation has triggered structural shifts in Africa’s foreign trade and economy. 

Traditional agricultural products are increasingly becoming value added. For example, raw cocoa and soybeans are now processed into higher-value goods such as cocoa powder, coffee, dried fruits, and dairy products. Meanwhile, the traditional energy and mineral sectors are moving beyond simple crude oil, natural gas, and mineral exports. More Chinese enterprises are investing across Africa in resource extraction, infrastructure development, and raw material processing. Industrial parks are being established to extend local industrial chains and increase the value added to exported materials. 

According to the blue book, China-Africa trade has seen robust growth recently. Trade in goods surpassed $280 billion in 2023, while trade in services reached $41.87 billion in 2021. The trade structure is also being optimised, becoming more diversified and higher in value addition. 

Chinese investment in Africa, both in flow and stock, continues to grow significantly, with notable concentration in construction. Infrastructure cooperation has yielded substantial results through extensive projects in transportation, power generation, telecommunications, and water conservancy. Development cooperation spans multiple areas, including education, agricultural modernisation, health care systems, and green growth initiatives. Policy mechanisms are being enhanced, and institutional frameworks for high-level engagement, trade facilitation, investment protection, and financial support continue to underpin future collaboration. 

Fruitful outcomes 

At the fourth CAETE in Changsha, bilateral trade cooperation maintained strong growth momentum. The event secured 176 cooperation agreements worth $11.39 billion, representing increases of 45.8 percent in project quantity and 10.6 percent in value compared to the previous edition. 

Among the highlights, 28 agreements on infrastructure projects were signed to support Africa’s green transition, connectivity, and industrial upgrading, with a total contract value of $5.27 billion. The General Administration of Customs of China signed five protocols with African nations granting market access for African agricultural and food products. Ten cooperation agreements were reached to better link vocational training with trade and economic development, covering vocational education partnerships, joint construction of industrial colleges, and overseas talent development. 

These outcomes are part of the broader implementation of the 2024 FOCAC Summit. In just nine months since the summit, early but notable progress has been made across multiple sectors. By the end of March 2025, Chinese enterprises have completed infrastructure projects in Africa worth over 134 billion yuan ($18.7 billion). Guided by the 10 partnership actions - a set of targeted priorities proposed by China to promote deeper collaboration - Chinese investments have expanded across the continent. Multiple projects have been completed in key sectors including green minerals, home appliances, automotive manufacturing, and new energy. Cooperation continues to deepen in emerging fields such as logistics, the digital economy, and financial services. 

Digital economy cooperation is now a critical dimension of China-Africa economic and trade relations. Platforms such as Alibaba.com and Pinduoduo have established operations in Africa, with cross-border e-commerce emerging as a dynamic new channel of cooperation. 

Since the summit, China has dispatched 508 medical professionals to Africa, collectively treating over 1.06 million patients. Several other livelihood-related projects have also made substantial progress. 

At the core of these efforts lies a commitment to implementation. These achievements not only meet the expectations of African nations but also reinforce China’s image as a responsible major power, demonstrating that China delivers on its promises rather than merely making pledges.  

The author is Researcher, Institute of West-Asian and African Studies of Chinese Academy of Social Sciences 

 

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