China Extends Duty-Free Trade to Afghanistan
In a significant move to bolster economic ties, China has announced plans to provide Afghanistan with duty-free access to its extensive construction, energy, and consumer sectors. This announcement was made by Zhao Xing, the Chinese Ambassador to Afghanistan, during a meeting with Abdul Kabir, the acting deputy prime minister of the Taliban government. The initiative aims to help Afghanistan, which is rich in mineral resources yet diplomatically isolated, to open its markets and enhance its economy.
China's interest in Afghanistan has grown since the Taliban's takeover in 2021. Although Beijing has not officially recognized the Taliban government, it sees Afghanistan's vast mineral wealth—including lithium, copper, and iron ore—as a way to secure its supply chains for key industries. The ambassador emphasized this potential, stating, "China will provide 100% tariff-free treatment to Afghanistan," as he shared a photo of his meeting with Kabir.
Afghanistan's exports to China were valued at $64 million last year, primarily consisting of pine nuts. However, the Taliban government is keen on diversifying its economy and attracting foreign investment to tap into its mineral resources, which could significantly enhance its economic stability given the current freeze on its central bank's reserves abroad. The Afghan government is also expressing interest in formally joining China's Belt and Road Initiative and has requested inclusion in the China-Pakistan Economic Corridor, a major infrastructure project linking Xinjiang to Gwadar port.
