Economy Politics Country 2026-04-13T02:51:16+00:00

China and the US Compete for Influence in Africa

After the US extended AGOA for one year, China announced a tariff-free import policy from 53 African countries without time limits. Analysis shows that to compete effectively in Africa, the US must offer long-term stability.


China and the US Compete for Influence in Africa

Just days after US President Donald Trump signed a one-year extension to the African Growth and Opportunity Act (AGOA), which grants African countries access to US markets with tariff exemptions, China announced it would expand its tariff exemption policy for imports from 53 African countries without any time limits. The message could not be clearer: while Beijing offers long-term certainty, Washington provides Africa with another year of uncertainty. China is now preparing to maintain and expand its current trade presence on a young, rapidly growing continent that will, by demographics, become an increasingly important part of the global economy. Among the top 20 fastest-growing countries in the world, 12 are in Africa, which is the second-fastest-growing region after Asia. While Asia's population will soon begin to decline, Africa's population is expected to continue growing, reaching 2.5 billion by 2050, and total trade and consumer spending in Africa is projected to reach $6.7 trillion by 2030. Africa's role as a source of production and consumption, as well as energy and vital minerals, will undoubtedly continue to grow, and no country elsewhere in the world, including the United States, can afford to marginalize itself in the global race for trade, investment, and numerous other commercial opportunities. For now, China is capturing a huge share of these opportunities, now Africa's top trading partner by a large margin. Chinese exports to Africa grew by nearly 26% in 2025, reaching $225 billion. Trade between China and Africa is strong and growing, with Chinese exports to Africa increasing significantly due to African demand for manufactured goods, such as machinery, electronics, automobiles, and other vehicles. In return, Africa primarily exports raw materials like crude oil, minerals, and agricultural products to China, leading to a persistent trade deficit for the African continent. Thus, the United States has an opportunity to offer Africans a better deal than the Chinese one—a more balanced deal that will not only focus on importing mineral resources but also on the desire of African nations to add value for Africans and their local economies through trade. Since its enactment in 2000, AGOA has been the primary channel for increasing bilateral trade between the US and Africa, providing African countries with tariff exemptions for shipments of their goods to the US for 1,800 products. According to recent research from the Brookings Institution, US exports to Africa have quadrupled since the law was implemented, this trade has supported 450,000 American jobs and delivered $1 billion annually in benefits to American consumers. Yet, inexplicably, Congress allowed this law to expire in September 2025, despite the Trump administration's support for its extension. Even more surprising is that this mistake was only corrected a few weeks ago through legislation passed by Congress and signed by US President Donald Trump into law. Nevertheless, instead of extending it for another decade or more, as some lawmakers sought, this new law was only extended through the end of this year. As a result, the celebration of the extension was rather muted, with stakeholders in US-Africa trade relations left wondering what comes next. Meanwhile, the Chinese leave no room for doubt about their intentions toward African trade: just days after Trump signed the temporary extension, China responded by announcing it would expand its tariff exemption for imports from Africa from 33 to 53 countries without a time limit. If the United States wants to effectively compete with China in Africa and support African aspirations for value-added growth rather than a perpetual reliance on commodities, it must offer the advantage of 'stability,' which markets value above all else. Extending this law permanently or for a long term would signal that America intends to be a reliable economic partner, not just a partner for good times.

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