‘DUMPING GROUND?’ The policy would have little impact on Eswatini, as African nations have a large trade deficit with China, a Ministry of Foreign Affairs official said
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Staff Writer, with CNA
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A Chinese policy to give tariff-free treatment to goods from all African nations except for Eswatini, which formally recognizes Taiwan, would not have much of an economic impact on the African kingdom, a Taiwanese official said yesterday.
During a legislative hearing, Deputy Minister of Foreign Affairs Chen Ming-chi (陳明祺) said the tariff-free policy should have a “minimal, almost negligible” economic effect on the African ally.
Chen said that Beijing’s decision to provide full tariff-free treatment to 53 African countries other than Eswatini starting next month could have a “psychological impact” on the country.
Deputy Minister of Foreign Affairs Chen Ming-chi speaks at a meeting at the legislature’s Foreign and National Defense Committee yesterday.
Photo: Tien Yu-hua, Taipei Times
President William Lai (賴清德) is traveling to the kingdom next week to show Taiwan’s support and demonstrate how Taiwan can help Eswatini develop its economy, Chen said.
Chen gave his assessment when asked by Democratic Progressive Party Legislator Chen Chun-yu (陳俊宇) to comment on China’s new trade policy, which excludes Taiwan’s only diplomatic ally on the African continent.
The policy would have little impact on Eswatini because Africa has a large trade deficit with China, with China primarily importing raw materials from the continent, Chen Ming-chi said.
China’s exports to Africa are mostly manufactured goods that help Beijing address its domestic industrial overcapacity, he said.
Taiwan would continue to help Eswatini develop its economy, including by importing more of its products and promoting them across the African continent, he said.
Total trade between China and Africa surged to a record US$348.05 billion last year, a 17.7 percent annual increase, underscoring Beijing’s focus on emerging markets amid US tariffs, a report published in January by Singapore’s Nanyang Technological University’s Centre for African Studies said.
The surge was accompanied by a 64.5 percent increase in Africa’s trade deficit with China to US$102.01 billion, the report said.
“This widening gap has sparked concerns among some observers that the continent is becoming a dumping ground for cheap Chinese goods, potentially undermining the industrialization ambitions of African nations,” the report said.
Bilateral trade between Taiwan and Eswatini totals about US$8 million annually. The two countries have an economic cooperation agreement that has been in effect since 2018.
Eswatini’s main exports to Taiwan include ethyl alcohol, sauces, grapefruit, machine parts, cotton yarn and metal jewelry, while Taiwan’s main exports to Eswatini consist of rice, printing machinery, filament yarn, dyeing machines, slide fasteners and garments.
The Presidential Office on Monday announced that Lai would visit Eswatini from Wednesday next week to April 27, mainly to attend celebrations for the 40th anniversary of King Mswati III’s accession to the throne and his 58th birthday.
