China-Africa economic engagement

Trade between China and Africa continued to accelerate after the July 2026 duty‑free expansion, with two‑way trade reaching $203.5 billion in the first half of the year and Chinese exports up 26 % while African exports grew 20 %. The trade gap persists because African shipments remain dominated by low‑value raw minerals and agricultural products, prompting Ghana, Namibia and the Democratic Republic of Congo to push for local beneficiation.

A UNCTAD report released in late July confirmed that China was the largest source of capital behind Africa’s biggest new foreign‑backed projects in 2025, pledging roughly $4.7 billion to a $2.5 billion oil‑and‑gas venture in Ethiopia and sizable oil‑gas and metals projects in Zambia and the DRC. Although the total value of announced greenfield investment fell by about one‑third in 2025, the number of projects rose, signalling a broader investment mix. The report also flagged recurring xenophobic violence in South Africa as a risk, noting more than 13,000 foreign nationals were repatriated or deported in the weeks before July 2026.

China announced that bilateral China‑Africa trade hit a record 1,410 billion yuan (about $196.6 billion) in the first half of 2026, driven by equipment and intermediate goods supporting industrialisation and agricultural modernisation. Chinese officials dismissed criticism of the trade imbalance as “traps”. At the same time, the European Union formally designated China a “major strategic challenge”, citing a €98 billion goods trade deficit with China in Q1 2026, concerns over dependence on Chinese rare‑earth magnets, and the potential impact of Beijing’s export controls on key sectors.