China’s Zero-Tariff Policy Boosts Hunan’s Africa Trade

China’s decision to expand zero-tariff treatment to goods from all 53 African countries with which it has diplomatic relations is already changing trade flows in Hunan, an inland province that has spent years trying to position itself as a gateway for China-Africa commerce.

When more than 6,000 bottles of South African wine cleared customs at Changsha Huanghua International Airport on May 1, the importer saved 21,000 yuan, or about $3,069, in duties, according to local officials and company executives. The wine had previously faced a 14% tariff in China. With the duty now cut to zero, the importer, Hunan Express Wisdom Information Technology Co., expects annual savings of about 5 million yuan.

The shipment was among the first in Hunan to benefit from the broader policy, which extends zero tariffs beyond the least-developed African countries covered under an earlier measure and now applies to all African nations with diplomatic ties to China. Beijing says it is the first major economy to offer unilateral zero-tariff treatment on this scale to all of its African diplomatic partners.

For Hunan, the change is more than a customs adjustment. Provincial officials and companies see it as a way to lower import costs, bring more African raw materials and consumer goods through the province and support re-export business from inland China.

Hunan has been building that role for years through the China-Africa Economic and Trade Expo and a pilot zone for deeper economic cooperation. Trade between Hunan and Africa has grown by an average of 15% a year to 58 billion yuan, making the province the top performer among central and western Chinese provinces in trade with Africa.

The new tariff policy follows an earlier step that took effect on Dec. 1, 2024, when China granted zero tariffs on all tariff lines for least-developed countries with diplomatic ties to Beijing, including 33 African countries. From that date through March 31 this year, Changsha Customs said it processed about 26.98 million yuan in tariff reductions for Hunan imports from those countries.

The policy has coincided with stronger import growth. Hunan’s imports from Africa rose 27.2% year on year to 30.92 billion yuan in 2025. In the first four months of 2026, total trade between Hunan and Africa reached 18.16 billion yuan, up 8.8% from a year earlier, while imports climbed 29.4% to 10.41 billion yuan.

Officials say the broader coverage could have an even larger effect because it includes several of Hunan’s main African suppliers, among them Kenya, South Africa, Nigeria, Morocco and Tunisia. Between January 2025 and March 2026, imports from those five countries accounted for 98.1% of the tariffs collected on Hunan’s imports from Africa.

Lan Shengbin, deputy head of Changsha Customs, said some manufacturers in Hunan had been paying tariffs of 7% to 10% on components from countries such as Tunisia, Morocco and Egypt. Removing those duties should reduce production costs and help companies diversify supply chains, he said.

The benefits are also expected to reach agricultural products and raw materials used in sectors such as biomedicine. Local businesses are already trying to turn the tariff savings into a broader trade model that uses Hunan as a point for importing, processing and redistributing African goods, including products later sent abroad.

That strategy has already produced some early examples. In July 2024, 400 fresh roses from Kenya were imported into Changsha and then re-exported through the Changsha Huanghua Comprehensive Bonded Zone to Uzbekistan, according to Changsha Customs. It was China’s first re-export transaction involving African fresh flowers.

Hunan Xiyue Culture Media Co., which handled that business, now imports flowers, fruit and ornamental fish from Africa, some of which are shipped onward to overseas markets. Company executive Huang Zinan said lower tariffs would cut import costs, improve cash flow and allow African products to be sold at more competitive prices.

Consumer goods are another focus. During the May Day holiday this month, an African goods market in Changsha drew about 89,000 visitors over six days. Organizers said lower import costs for raw materials had allowed prices to fall on some products, including chocolate made with Ghanaian cocoa, shea-butter products from Mali and coffee from Zambia.

Hunan Yufei Industry Investment Co., which helped organize the market, said its Quality African Products brand now includes more than 400 products from 13 African countries, ranging from coffee and avocados to spices.

Provincial authorities are also trying to widen the impact beyond retail sales. In late April, Hunan’s commerce department announced seven measures aimed at expanding imports from Africa, improving overseas warehouse services, supporting industrial cooperation and increasing China-Africa Economic and Trade Expo activities in African countries.

Coffee sellers are moving quickly as well. Coffee Z, a Changsha-based chain focused on African specialty coffee, plans to expand direct sourcing from Ethiopia and Kenya, founder Jing Jianhua said. The company is also accelerating work on an industry platform and AI-enabled coffee equipment across China.

“We will use the zero-tariff policy as an opportunity to bring more high-quality, affordable African coffee to consumers across China,” Jing said.