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III. C. Commercial Policies: THE ROLE OF CHINA’S PUBLIC SECTOR

III. C. Commercial Policies: THE ROLE OF CHINA’S PUBLIC SECTOR

Market access and trade policy are important in fostering China-Africa trade. The Chinese
government in January 2005 implemented the Special Preferential Tariff Treatment (SPTT),
which removes the tariff from some 190 items exported to China from 25 of the least
developed countries in Africa. Chinese custom statistics show that the value of goods
imported from Africa under the SPTT reached US$380 million in 2005—a year-on-year
increase of 88 percent, about 50 percentage points higher than the growth of China’s total
imports from Africa for the same year. As part of the new package of commitments China announced in November 2006, the number of tariff items affected by SPTT has been
increased to over 440.
The Chinese authorities have also taken other steps. In June 2006 they announced the launch
of free trade area (FTA) negotiations with the Southern African Customs Union as part of the
efforts envisaged in their African Policy Paper to negotiate FTA with African countries and
regional trading blocs. To help African countries build their export platform, China has set up
more than 100 trade processing projects in Africa and in November 2006 committed to
establishing three to five trade and economic cooperation zones in Africa by 2009.

IMF Working Paper
African Department
What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang
October 2007





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International Monetary Fund
(Visit International's Website) The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. Since the IMF was established its purposes have remained unchanged but its operations—which involve surveillance, financial assistance, and technical assistance—have developed to meet the changing needs of its member countries in an evolving world economy.

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