Favorable Export Tariffs And Attractive Prospects For China'S Export To Africa

On the China Africa Investment Forum for sustainable development, Shi Jiyang, President of the China Africa Development Fund, threw out such a group of figures: Africa has 54 countries and regions, more than half of the cultivable land, 1 billion 100 million people, and young people under 25 years old account for more than half of the total population, and there are 10 million new labor force each year.

Since 2000, Africa's GDP growth has remained above 9.5% for 10 consecutive years.

Africa will be the next pole of world economic growth.

As China's first right and wrong

Since its inception in June 2007, the China Africa Development Fund has invested 86 projects in 36 African countries with a total investment of more than US $3 billion 400 million, and has led Chinese enterprises to invest more than US $16 billion in Africa.

Xiong Jiuling, President of Beijing Council of trade promotion, added: "China has been ranking the largest trading partner of Africa for 7 consecutive years.

The existing more than 3100 Chinese enterprises invest in Africa, investing in the amount of US $about 32000000000, providing about 100000 jobs.

The potential market space of African countries has aroused unprecedented investment enthusiasm of Chinese enterprises.

Julia Spiess, a market analyst at the United Nations International Trade Center, pointed out that in addition to having abundant natural resources and labor resources, all products invested in Africa, if exported to Europe and the United States, are less likely to be subject to tariff and quota restrictions.

Under the framework of the African Growth and Opportunity Act, which is provided by the United States to Africa, 6400 products from 37 countries in Africa can enjoy tariff reduction and exemption for US exports.

In addition, the European Union signed with African countries.

According to the agreement, 80% of Africa's products can enjoy zero tariffs on EU exports.

Specifically in the field of textile and clothing investment, Julia Spiess said that agriculture and animal husbandry are the traditional dominant industries in African countries. The spinning enterprises that invest in Africa will make full use of a large quantity of high-quality cotton and linen.

And other raw materials.

For example, she said: "relying on Ethiopia, Zambia cotton planting and Mozambique sisal industry can focus on textile and garment processing; relying on Kenya fur industry can develop bags and shoes manufacturing industry."

For African countries, because of preferential policies for the two major global export markets of the United States and the EU, this advantage has become the main reason for African countries to attract foreign direct investment.

As for export preferential policies, according to Zhang Huarong, chairman of Huajian group, a large Chinese investment company in Ethiopia, "Chinese clothing and footwear enterprises can invest in Africa and enjoy different treatment from China's export tariffs."

For example, a shirt from Africa to Europe and the United States is zero tariff, and export from China to Europe is 12% of tariffs, exports to the United States is a 19% tariff.

Zhang Huarong also praised the efforts of the local government.

He said: "when arriving in Ethiopia, it takes an average of 5 months to pport containers from China to Ethiopia, and now it will arrive in 1 months. The pport cost will be 6%, and now it will be reduced to 4.2%.

It takes only 25 days to pport containers from China to the capital of Addisababa, and the pportation cost is only 2.1%.

In order to achieve Ethiopia's goal of becoming an African manufacturing center in 2025, the local government has made great efforts to provide an excellent business environment for enterprises.