China to offer Taliban tariff-free trade as it inches nearer isolated resource-rich regime

BEIJING - China will offer the Taliban tariff-free access to its vast construction, energy and consumer sectors, Beijing’s envoy to Afghanistan said on Oct 24, as the ailing resource-rich but diplomatically-isolated regime looks to build up its markets.

Beijing has sought to develop its ties with the Taliban since they took control of Afghanistan in 2021 but, like all governments, has refrained from formally recognising the Islamic fundamentalist group’s government amid international concern over its human rights record and those of women and girls.

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

And selling Afghanistan’s lithium, copper and iron deposits to the world’s biggest commodities buyer would help the Taliban prop up their ailing economy, which the United Nations says has “basically collapsed”, and provide a much needed revenue stream as the country’s overseas central bank reserves remain frozen.

“China will offer Afghanistan zero-tariff treatment for 100 per cent tariff lines,” Mr Zhao Xing, Chinese ambassador to Afghanistan, wrote on his official X account late on Oct 24, above a photo of him meeting acting Deputy Prime Minister Abdul Kabir.

Afghanistan exported US$64 million (S$84 million) worth of goods to China in 2023, according to Chinese customs data, close to 90 per cent of which was shelled pine nuts, but the Taliban government has said it is determined to find foreign investors willing to help it diversify its economy and profit from its minerals wealth.

The country exported no commodities to China in 2023, the data shows, but Mr Zhao has regularly posted photos of him meeting Taliban officials responsible for mining, petroleum, trade and regional connectivity since his appointment in September 2023.

Several Chinese companies operate in Afghanistan, including the Metallurgical Corp of China, which has held talks with the Taliban administration over plans for a potentially huge copper mine, and was highlighted in an August feature in Chinese state media on Chinese companies rebuilding Afghanistan.

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

The policy was then repeated on Oct 23 by Vice-Commerce minister Tang Wenhong at a press conference in Beijing on the preparations for China’s upcoming annual flagship import expo.

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

In October 2023, Afghanistan’s Acting Commerce Minister told Reuters the Taliban

wanted to formally join Mr Xi’s flagship Belt and Road infrastructure initiative

.

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