China announces tariff-free trade with resource-rich Taliban regime
- In Reports
- 04:45 PM, Oct 25, 2024
- Myind Staff
China has announced it will grant the Taliban tariff-free access to its large construction, energy, and consumer markets. This move comes at a time when an internationally isolated Taliban regime rich in resources is seeking new markets to strengthen its economy.
Since the Taliban took control of Afghanistan in 2021, Beijing has worked to strengthen its relationship with them. However, like other governments, China has held off from formally recognising the Taliban’s rule due to international concerns about human rights, especially regarding the treatment of women and girls. Though it runs the risk of turning into an oasis for extremist organisations endangering China's Xinjiang province and significant investments in neighbouring Pakistan, the impoverished country might provide Beijing with a wealth of mineral resources to strengthen the security of its supply chain.
The Taliban's economy, which the U.N. claims has "basically collapsed," would be supported by the sale of Afghanistan's lithium, copper, and iron deposits to China's massive battery and construction industries. This would also provide a much-needed source of income as the nation's foreign central bank reserves are still frozen. On his official X account late Thursday, Chinese ambassador to Afghanistan Zhao Xing wrote, "China will offer Afghanistan zero-tariff treatment for 100% tariff lines,"
The Taliban government has stated that it is committed to finding foreign investors who will assist it in diversifying its economy and making money from its wealth of minerals. According to Chinese customs data, Afghanistan exported $64 million worth of goods to China last year, with shelled pine nuts accounting for nearly 90% of the total. According to the data, the nation did not send any goods to China last year. However, since his appointment in September, Zhao has frequently shared pictures of himself meeting Taliban leaders in charge of commerce, mining, petroleum and regional connectivity.
"In the Horn of Africa, China's Special Envoy Xue Bing said that the best way to resolve security and terrorism challenges is through economic development. I think they are bringing that same mindset to Afghanistan," stated Eric Orlander, co-founder of the China-Global South Project. "I don't buy the whole strategic minerals line that we hear in Washington about how China is eyeing Afghanistan's vast lithium reserves," Orlander went on to mention the expense and security issues associated with their extraction.
"(China's) answer to everything is build a road, and from that economic development will lead to peace and harmony." Numerous Chinese businesses have operations in Afghanistan, such as the Metallurgical Corp of China Ltd., which was featured in an August article on Chinese businesses rehabilitating Afghanistan and has discussed plans for a potentially massive copper mine with the Taliban government.
At a September Beijing summit for over 50 African leaders, Chinese President Xi Jinping declared that, without providing specifics, import taxes would not apply to goods coming into his $19 trillion economy from "the least developed countries that have diplomatic relations with China" as of December 1. Vice Commerce Minister Tang Wenhong then reiterated the stance Wednesday during a news conference in Beijing on the impending China's annual flagship import expo. A spokesman for China's foreign ministry, Lin Jian, stated Friday that the policy would be applicable to Afghanistan and that it would encourage profitable trade and economic collaboration.
A request for a response from the Afghanistan embassy in Beijing was not answered. Afghanistan's acting minister of trade told Reuters last October that the Taliban wished to officially become part of Xi's "Belt and Road" development project. The China-Pakistan Economic Corridor, a $62 billion connectivity project that links Pakistan's Arabian Sea port of Gwadar with China's resource-rich Xinjiang province, is another initiative that Kabul has requested permission from China to join.
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