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China-Africa trade gets a boost from critical minerals needed for EV battery production
- Two-way trade grew nearly 6 per cent to US$70.86 billion year on year in the first quarter of 2024, Chinese customs data shows
- A boost to China’s imports of critical minerals and metals, combined with higher commodity prices, have helped to power the growth
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Trade between China and Africa defied economic headwinds in the first quarter of 2024, with two-way trade growing by 5.9 per cent year on year to US$70.86 billion, according to the latest customs data.
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This was despite a property crisis in China which affected copper demand, with a downturn in copper prices towards the end of 2023.
Experts have attributed the rise in trade to higher commodity prices during the period, as well as incentives introduced by Beijing to grow trade with Africa, in particular, allowing more agricultural products into China tariff-free. China has also been buying more gold from Africa, adding to the increase, they noted.
The figures from China’s General Administration of Customs showed imports from Africa grew 8 per cent year on year to US$29.42 billion in the first quarter. This was boosted by a rise in imports of critical minerals, in particular metals used for electric vehicle (EV) battery production.
Meanwhile, China’s exports to Africa increased 4.4 per cent, rising to US$41.4 billion.
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It is a trade surplus for Beijing that is borne from the fact that China buys mostly raw materials from the continent – such as oil, copper, iron ore and battery metals including cobalt and lithium – while it largely exports finished industrial products.
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