Zero-tariff policy to speed up Linyi's overseas expansion

Linyi's trade with Africa saw a notable rise in the first quarter, with imports and exports reaching 6.74 billion yuan ($991.18 million), up 16.6 percent year on year, as the city continued to support local markets and enterprises in expanding overseas. The zero-tariff policy that took effect on May 1 is expected to further encourage trade with African markets.

Africa has emerged as one of Linyi's most promising markets, making up 17.4 percent of the city's total foreign trade in the first quarter. Trade with five key markets - Nigeria, Ghana, Tanzania, Kenya, and South Africa - maintained steady growth, increasing by 6.8 percent, 19.1 percent, 25.5 percent, 8.3 percent, and 38.2 percent, respectively. Together, they represented 40.9 percent of Linyi's total trade with Africa.

In recent years, Linyi has made Africa a focal point in its overseas growth strategy, enhancing trade cooperation with the continent. With the new zero-tariff policy now in place, the city's efforts to help local markets and enterprises expand overseas are expected to gain renewed momentum.

Exports continued to be the main driver. In the first quarter, Linyi's exports to Africa reached 6.2 billion yuan, up 22 percent from the previous year. Mechanical and electrical products, along with labor-intensive goods, continued to be the top exports. Shipments of construction machinery, rubber tires, and electrical equipment grew by 93.7 percent, 27.7 percent, and 32.7 percent, respectively. Exports of furniture and parts surged 251.2 percent, while plywood and steel exports increased by 67.7 percent and 168.9 percent, highlighting the growing competitiveness of Made in Linyi products in Africa.

Imports from Africa illustrated new opportunities. Linyi imported 540 million yuan worth of goods from Africa in the first quarter, with agricultural imports increasing by 143.6 percent.

Starting May 1, China began applying zero tariffs to 100 percent of tariff lines for products from 53 African countries with diplomatic ties to China. Along with green channel measures, the policy is expected to significantly reduce the import cost of quality African products.

According to feedback from local companies, the tariff on extra virgin olive oil from Tunisia will decrease from 10 percent to zero, significantly reducing procurement costs and supporting further import growth. Some importers also plan to increase purchases of graphite from Mozambique and expand domestic sales for frozen strawberries from Egypt.

The policy is also expected to boost Linyi's exports over time. As African countries benefit from exports, their purchasing power for Linyi's competitive products, including construction machinery and auto parts, is expected to grow.

Linyi Customs stated that it will closely monitor the policy's implementation details, collaborate with relevant departments to provide specific policy guidance and services for foreign trade companies, and continue to improve customs clearance procedures. The aim is to help enterprises fully benefit from the policy and support the steady progress of Linyi's overseas expansion in African trade.

Editor：韩蒙蒙