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China is set to tear down trade barriers with some of the World’s poorest countries from December 1st – just weeks before Donald Trump enters the White House with promises of higher tariffs.
The Chinese Customs Tariff Commission of the State Council announced that all least-developed countries (LDCs) with diplomatic relations with China will benefit from zero tariffs on 100 per cent of items imported by the country from the last month of the year.
The move is expected to lower shipping costs from parts of Asia and Africa and give China more influence in global trade in parts of the country where it has already asserted its dominance.
The countries that will benefit from the zero-tariff treatment include:
China President Xi Jinping said that this move will help turn China’s market into an opportunity for Africa.
He also noted that China is the first major developing country and economy to take such a step, which could help bring people out of poverty in developing nations by bolstering economies.
The move comes as Donald Trump proposes more aggressive tariffs in the US ranging from 60 per cent to 100 per cent on Chinese goods and a universal tariff of up to 20 per cent on imports from all other countries.
“We’ll lead an American manufacturing boom,” Trump told voters in a speech in Georgia in September. “When they have to pay tariffs to come in, but they have the incentive to build here, they’re going to come roaring back.”
The catch, according to economists, is that tariffs can lead to higher interest rates and reignite inflation.
Autozone and Stanley Black & Decker, which rely on imports, have already said the companies would pass on increased operating costs to consumers.
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