President Donald Trump of the United States has been anti-Chinese since he came to office. One of its initiatives is the imposition of trade restrictions. The America First Investment Policy initiative has imposed a 20% levy on all Chinese imports and new technology sanctions. Even though Africa is not part of this trade conflict, how does its impact affect the Black Continent?
What is China's response to the United States' assertive policy? Firstly, China formally complains that the American actions are counterproductive for the world economy; secondly, Beijing is defending important industries that have been harmed by U.S. sanctions at home; and thirdly, the United States is subject to retaliatory measures from China. For example, Beijing levied a 25% tax on American soybeans, one of the key ingredients in animal feed, in 2018.
In retaliation for the trade war, China has unveiled a new round of restrictions against eighty US commodities. Energy carriers, such as coal, natural gas, and oil, were subject to 15% taxes, and 72 different industrial products, including trucks, mobile homes, and agricultural machinery, were subject to 10% duties. The battle was centered on agriculture. China quickly put an additional 15% duty on US imports of chicken, wheat, corn, and cotton, as well as pig, cattle, fish, dairy goods, and fruits and vegetables, on the same day that the US announced 10% tariffs on Chinese imports.
What impact does China's stance on the trade war have on Africa?
There is one noteworthy coincidence, but it is uncertain whether China's response to the trade dispute with the United States had a direct impact on its policies in Africa. Beijing unveiled a new plan to boost trade with Africa less than a month after Trump returned to the White House in 2025 and right after the first tariffs on Chinese products were put in place. China plans to strengthen economic cooperation with African nations as part of this agenda.
This decision is an extension of the strategy China has been following for a number of years. For example, Beijing started searching for other markets in 2018 after Trump levied the first tariffs on Chinese solar panels and washing machines. China increased its purchases of agricultural items in Africa and decreased its imports from the United States following the imposition of taxes on American soybeans. Thus, China is becoming less reliant on the US market as it continues to diversify its international economic ties.
Africa is emerging as a crucial ally in this approach, which has the potential to fundamentally alter the global economic power structure. The heads of state convened in Beijing in September 2018 for the China-Africa Cooperation Forum conference. A China-Africa trade show and increased agricultural cooperation between China and Africa were announced. The Chinese Ministry of Agriculture and Rural Affairs started taking proactive steps in this approach as early as the first few days following the summit.
Since hosting a conference of African agriculture ministers, Hunan Province has emerged as a crucial center for China-Africa cooperation. In addition to the bigger, twice-yearly China-Africa Economic and Trade Fair (CAETE), it now has a permanent exposition pavilion for trade between China and Africa. Furthermore, Hunan has launched a pilot project for extensive economic and trade cooperation between China and Africa. To break down trade and investment barriers between China and Africa, the zone has created a number of initiatives, such as assistance in the fields of technology, law, currency, and vocational training.
The region is part of a larger free trade area with excellent air, sea, and land transportation connections to Africa. Hunan is the port of entry for agricultural exports from Africa to China, where local industry either uses the imports or distributes them across the nation for additional sale. Hunan businesses are well-positioned to capitalize on the opportunities presented by the Sino-American impasse and play a significant role in promoting trade between China and Africa.
Longping High-Tech, the agricultural technology behemoth from Hunan, for example, makes investments in Tanzanian soybean producers, and the world's top construction business, Sany, which produces heavy industrial equipment for the mining, energy, and construction industries, is one of the Chinese companies based in Hunan that produces electric vehicles and construction machines. Hunan is also the location of China's railway electronics sector and BYD, a world leader in the production of electric vehicles.
These businesses are expanding their footprints in Africa and can help China compete with the US for important mineral resources and technological leadership.