China Grants Duty-Free Market Access to Taliban-Run Afghanistan

In a bold move to strengthen economic ties, the Chinese ambassador in Kabul, Zhao Xing, announced that China would grant Afghanistan duty-free access to its markets, particularly in the construction and energy sectors. Posting on X, Zhao stated that China will now offer Afghanistan zero-tariff access, replacing previous tariffs that reached as high as 100 per cent. The development signals China’s growing interest in Afghanistan’s resources, though Beijing has stopped short of formally recognising the Taliban government, which took control in August 2021.

Ambassador Zhao emphasised that this trade initiative presents mutually beneficial opportunities, with Afghanistan’s rich mineral resources offering potential for Chinese companies to gain a foothold in the country. The Taliban government, keen to bolster its economy through foreign investment, views the partnership as a significant step towards utilising its vast mineral wealth. The sale of key resources, including lithium, copper, and iron, is expected to help reinforce Afghanistan's fragile economy, which has struggled since the Taliban assumed control amid ongoing international isolation.

In discussions with Taliban officials, Zhao highlighted the potential for “significant economic collaboration,” signalling China’s interest in Afghanistan’s future role in regional trade. Chinese customs data shows that Afghanistan exported $64 million worth of goods to China last year, with pine nuts accounting for nearly 90 per cent of the total. However, the Taliban is aiming to diversify its exports and attract broader foreign investment, and China’s commitment to zero tariffs marks a step in that direction.

Since taking up his post in September, Zhao has held meetings with Taliban officials overseeing key areas such as mining, oil, trade, and regional communications. Notably, Chinese corporations, including the China Metallurgical Group, are already exploring potential mining projects within Afghanistan, underscoring China’s ambitions in the region.

The Taliban, meanwhile, has voiced its desire to formally join China’s Belt and Road Initiative (BRI), eyeing integration into the China-Pakistan Economic Corridor (CPEC), a $62 billion project aimed at connecting China’s Xinjiang region to Pakistan’s Gwadar port. This aspiration highlights Afghanistan’s strategic position in regional connectivity projects, potentially offering the Taliban access to new trade and infrastructure developments under China’s BRI.

The evolving relationship between China and the Taliban offers the prospect of economic engagement for Afghanistan, particularly in the mineral sector. Yet, with international recognition still elusive, the success of this partnership depends on the Taliban's ability to maintain stability and security for foreign investors amid complex geopolitical dynamics in South Asia. For China, expanding its influence in Afghanistan aligns with broader regional goals, though the future will likely hinge on navigating both political and security challenges in the region.