China Offers Tariff-Free Access to Taliban

China Offers Tariff-Free Access to Taliban
Beijing will grant the Taliban tariff-free access to its construction, energy, and consumer sectors, China’s envoy to Afghanistan announced on Thursday. The move comes as the Taliban seek to bolster their markets and attract foreign investments. China has been keen on strengthening ties with the Taliban since their takeover of Afghanistan in 2021.
Afghanistan’s Mineral Wealth and China’s Supply Chain
Afghanistan possesses abundant mineral resources, including lithium, copper, and iron, which could enhance China’s supply chain security. However, the country also poses potential risks as a haven for militant groups that could threaten China’s investments in the region.
Taliban’s Economic Lifeline
The Taliban’s economy has “basically collapsed,” as per the United Nations. By tapping into Afghanistan’s mineral wealth, the Taliban can generate much-needed revenue and stabilize their financial situation. China’s zero-tariff policy is expected to boost Afghan exports and provide a lifeline to the struggling economy.
China’s Foreign Policy and Economic Development
China’s decision to offer tariff-free treatment to Afghanistan aligns with its broader foreign policy approach in the Horn of Africa and other regions. Beijing believes that economic development is the key to countering security and terrorism challenges.
China’s Corporate Presence and Strategic Plans
Several Chinese companies, including Metallurgical Corp of China Ltd, are already operating in Afghanistan. These companies are involved in mining, infrastructure, and other sectors. China has also expressed interest in Afghanistan’s inclusion in its “Belt and Road” initiative and the China-Pakistan Economic Corridor.
International Response and Diplomatic Isolation
While China has sought to build ties with the Taliban, other governments have refrained from formal recognition due to concerns about human rights abuses, particularly against women and girls. Afghanistan remains diplomatically isolated, with its overseas central bank reserves still frozen.
Afghanistan’s Aspiration for International Integration
Afghanistan’s acting commerce minister has expressed the Taliban’s desire to join the “Belt and Road” initiative and the China-Pakistan Economic Corridor. Kabul’s request for inclusion in these projects highlights their ambition for international integration and economic growth.
China’s Policy Implementation
China’s tariff-free policy will be applicable to Afghanistan from December 1, 2022. The move is expected to promote bilateral trade and economic cooperation, while also bolstering the Taliban’s financial position and fostering economic development in the war-torn country. The Afghanistan embassy in Beijing has not yet responded to requests for comment.