China has introduced zero tariffs for all least developed countries effective December 1, 2024, impacting 53 African nations. This decision, made by the General Administration of Customs, aims to enhance trade growth and integrate exporters from these countries into the Chinese market.
New Customs Policy of China
The new policy applies to all least developed countries with diplomatic ties to China. The State Council announced that the coverage of products available under zero tariffs has increased from 98% to 100%. This is part of China's strategy to open its economy to least developed countries and neighboring African economies.
Import Growth Due to Zero Tariffs
With the implementation of the new policy, imports from least developed countries have surged by double digits. China will continue leveraging its vast market to encourage global development. Reactions to this policy have been generally positive, with the WTO welcoming the expansion.
Impact on Crypto Industry
Despite the introduction of the new customs policy, no significant responses from the crypto industry have been noted, as there is no clear regulatory impact on cryptocurrencies like Bitcoin and Ethereum. However, analysts emphasize that the removal of tariffs could encourage the development of alternative financial technologies.
Thus, China's zero-tariff policy for least developed countries may strengthen trade relations and provide additional opportunities for exporters, although the impact on the crypto industry remains uncertain.
