Editor's Note
This editor’s note highlights the key facts and market implications behind “China Punishes ‘Taiwanese’ ESwatini but Removes “, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
Carrot and stick. The case of ESwatini (formerly Swaziland), the only African country that recognizes Taiwan, has not yet subsided. It was the protagonist of a controversial last-minute cancellation of the visit of Taipei President Lai Ching-te due to obstacles posed by other countries (including Seychelles, Mauritius, and Madagascar) while China opens tariff exemptions for another 52 African countries starting in May.
The New Development
China will fully exempt Egyptian exports from customs duties starting May 1, 2026, as part of Beijing's strengthening of trade ties with Africa, according to Chinese state media.
But this is not an ad personam policy. Egyptian exports to China will enter the Chinese market without customs duties, just like goods arriving from another 52 African countries. This tariff policy was announced on June 12, 2025, during the China-Africa Economic Forum, which opened greater access to the Chinese market. China, as is well known, has been Africa's main trading partner for the past 15 years, with trade volumes reaching $292 billion in 2024, primarily with Kenya, Ghana, Nigeria, and Morocco.
A Strategy That Works
Data from 2025 shows that the system adopted by China rewards bilateral and regional cooperation. Although China offers significant trade and investment opportunities, it has also been criticized for its lending practices and the potential debt dependency of certain African nations. However, it is now shifting its focus from projects financed exclusively through debt to mutually beneficial investments.
The Opposite of the US
China has long had a more open trade strategy than the United States, though it is difficult to estimate precisely; much depends on the value of the beneficiary country's exports to the country offering the 'discounts.'
A case study is Australia, which shows that the average tariff under the preferential regime (thanks to the FTA with China) is about 1.1%, compared to 7.1% without an agreement (roughly 85% less than the theoretical maximum rate). So, on one billion in imports from Australia, China collects tariffs of 11 million, compared to the 71 million it would have collected without the agreement (a 'cost' of about 60 million per billion in trade). However, this is not a real cost, as it is offset by much broader benefits. In the case of Australia, China secures privileged access to Australian raw materials, strengthens geopolitical relations, and gains greater competitiveness. For all of Africa, the calculated waiver of tariff revenue is total.
Source: Read the original article | Published: April 23, 2026