China to offer duty-free trade to Taliban as it moves closer to isolated resource-rich regime

BEIJING – Beijing’s envoy to Afghanistan said Oct. 24 that China would offer the Taliban tariff-free access to its vast construction, energy and consumer sectors; The resource-rich but diplomatically isolated regime is trying to establish its markets.

Beijing has sought to improve ties since the Taliban took control of Afghanistan in 2021 but, like all governments, has refrained from formally recognizing the Islamic fundamentalist group’s government due to international concerns over its record on human rights and women and girls.

But the impoverished country could offer coveted rich mineral resources to boost Beijing’s supply chain security.

The sale of Afghanistan’s lithium, copper and iron deposits to the world’s biggest commodity buyer would help the Taliban shore up their struggling economy, which the United Nations says is “fundamentally collapsing”, and provide a much-needed revenue stream thanks to the country’s overseas central bank reserves. stay frozen.

“China will offer zero tariff treatment for 100 percent tariff lines to Afghanistan,” Chinese Ambassador to Afghanistan Mr. Zhao

According to Chinese customs data, Afghanistan exported US$64 million ($84 million) worth of goods to China in 2023; Almost 90 percent of these were shelled pine nuts, but the Taliban government said it was determined to find willing foreign investors. helping it diversify its economy and profit from its mineral wealth.

Data shows the country exported no goods to China in 2023, but Mr Zhao has regularly posted photos of him meeting Taliban officials responsible for mining, oil, trade and regional links since his inauguration in September 2023.

Several Chinese companies operate in Afghanistan, including Metallurgical Corp of China Ltd, which is in talks with the Taliban leadership about plans for a potentially large copper mine, highlighted in a Chinese state media report in August about Chinese companies rebuilding Afghanistan.

At a summit attended by more than 50 African leaders in Beijing in September, Chinese President Xi Jinping announced that, as of December 1, goods entering his country’s $19 trillion economy from “the least developed countries that have diplomatic relations with China” will not be subject to import duties. , without giving details.

This policy was later reiterated on October 23 at a press conference held by Vice Minister of Commerce Tang Wenhong in Beijing about preparations for China’s upcoming flagship annual import fair.

The Afghan embassy in Beijing did not respond to a request for comment.

In October 2023, Afghanistan’s acting trade minister told Reuters about the Taliban. He wanted to formally join Mr Xi’s flagship Belt and Road infrastructure initiative.

Kabul has also asked China to allow it to become part of the China-Pakistan Economic Corridor, a $62 billion connectivity project connecting China’s resource-rich Xinjiang region to Pakistan’s Gwadar port on the Arabian Sea. REUTERS