According to the trade analysts, the latest major policy initiative positions China as the first major economy in the world to grant unilateral and comprehensive zero-tariff treatment to all African countries that have diplomatic relations with China, as well as to all least developed countries that maintain diplomatic relations with China. This "unilateral and full-coverage" arrangement is not just a "subtraction" in tariffs, but also an "addition" for development, a "multiplication" for people's livelihoods, and a "division" of arbitrary tariff impositions.

Already, China with its trade and financial muscle power is dominating the investment and trade in Africa far ahead of the western countries and the USA. India has been in competition in the recent years, but New Delhi has not been able to make significant inroads in the African market compared to China. Now this May 1 initiative is expected to catapult China to a premier position in 2026 when China is involved in a trade war with the USA and President Trump is scheduled to visit Beijing on May 14-15 for the bilateral summit.

Global trade experts mention that China has been taking a planned move to woo the African nations for trade and investment for the last two decades. Earlier, at multilateral forums such as the Forum on China-Africa Cooperation (FOCAC), China committed to gradually expanding tariff preferences for African countries to help them integrate into the global trading system. Starting in 2005 with zero-tariff treatment for certain products from the least developed countries in Africa, and granting zero-tariff treatment on 100 percent of tariff lines for least developed African countries by the end of 2024, as well as further extending the preference to all African countries with diplomatic relations with China by 2026,

Thus these concessions for the African nations have been a part of a continuous process of integrating African nations into the trade arrangements with Beijing at the most favourable terms. This latest zero tariff implementation from May 1, 2026 has come at the most opportune time as global growth faces mounting pressure due to the rising policy uncertainty over the U.S. stand on unilaterally declaring tariff rates and heightened anxiety over the supply chain security.

As against latest Chinese trade outreach in African nations, India-Africa economic relations are rapidly deepening, with bilateral trade surpassing $100 billion by 2024–25 and cumulative investments reaching roughly $75 billion. India is now Africa’s third-largest trading partner, focusing on long-term partnerships in energy, technology, pharmaceuticals, and manufacturing.

On the other hand, China’s total trade volume with Africa is estimated at US$ 348 billion in 2025 which is more than three times of India. China is the largest trading partner with Africa while India is the third largest partner. Key sectors in Africa invested by China include manufacturing, mining and infrastructure. China is making use of its BRI with African countries to raise its trade and investment in the continent.

Key sectors for Indian investment include petrochemicals, fertilizer, digital payments, and mining. Major investors include Bharti Airtel, ONGC Videsh, and various pharmaceutical companies. India provides billions in concessional loans (Lines of Credit) for projects like railways, irrigation, and power, often via the Export-Import Bank of India.

Through the ITEC program and the e-Vidya Bharati & e-Arogya Bharati (e-VBAB) network, India offers education and tele-medicine to African partners. India aims to diversify its energy sources by increasing imports from Nigeria, Angola, and Algeria, while supporting Africa's industrialization.

Indian trade experts are emphasizing now the immediate reinventing of Indian trade and investment strategy to meet the big step up in Chinese challenge in Africa. They favour aligning India's trade strategy with the African Continental Free Trade Area (AfCFTA) by supporting Regional Value Chains.

Further, India must move beyond its traditional export markets (South Africa, Nigeria, Egypt) and diversify into other regions of Africa with target of doubling bilateral trade to USD 200 billion by 2030. There is a firm view that the India-Africa Forum Summit (IFAS) which has not n been held since 2015, needs to be immediately convened. Ideally, such summits should be held once in three years. Right now, there is need for such a summit in 2026/2027 to review the latest status for taking corrective measures.

There is another suggestion to meet the financial muscle power of China which is evident in African projects. The idea is that India should leverage partnerships with third countries like and UAE to pool resources for African projects It is a tough task for India, but this has to be done if New Delhi is serious about expanding its areas of trade and investment cooperation in the African continent. (IPA Service)