China plans to provide the Taliban with tariff-free access to its extensive construction, energy, and consumer sectors, marking a step in the growing relationship between Beijing and the Taliban-led government in Afghanistan. Zhao Xing, China's ambassador to Afghanistan, announced the policy, stating that it would include "zero-tariff treatment for 100% tariff lines."
Since the Taliban took control of Afghanistan in 2021, China has sought to deepen its ties with the regime, despite international concerns regarding human rights abuses, particularly those affecting women and girls. As Afghanistan faces severe economic challenges, with the United Nations indicating that its economy has "basically collapsed," the country offers rich mineral resources that could enhance China's supply chain security.
China is particularly interested in Afghanistan’s deposits of lithium, copper, and iron, which could support its expansive battery and construction industries. However, engaging with Afghanistan also poses risks, as the region has the potential to harbor militant groups that threaten China's interests, especially in Xinjiang and neighboring Pakistan.
Last year, Afghanistan exported approximately $64mn worth of goods to China, predominantly shelled pine nuts. The Taliban government aims to diversify its economy and attract foreign investments to tap into its mineral wealth, a strategy underscored by Zhao's regular meetings with Taliban officials in charge of mining and trade.
Eric Orlander, co-founder of the China-Global South Project, remarked on China's broader approach to security and economic development, noting that Beijing's strategy focuses on infrastructure development as a means to foster peace and stability. He questioned the notion that China's interests in Afghanistan revolve solely around its mineral wealth, highlighting the challenges associated with resource extraction.
Several Chinese firms, including the Metallurgical Corp of China, are already exploring opportunities in Afghanistan, particularly in the mining sector. Chinese President Xi Jinping announced at a recent summit that, starting December 1, goods from "the least developed countries that have diplomatic relations with China" would be exempt from import duties. This policy was reiterated by Vice Commerce Minister Tang Wenhong, indicating its applicability to Afghanistan.
The Taliban is also eager to join Xi's flagship "Belt and Road" infrastructure initiative and has expressed interest in participating in the China-Pakistan Economic Corridor, a major connectivity project designed to link China's Xinjiang region with Pakistan's Gwadar port.
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