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Economic Watch: Central Chinese province boosts China-Africa trade with policy innovation

Xinhua
| June 22, 2026
2026-06-22

CHANGSHA, June 22 (Xinhua) -- At a bustling market square in Changsha, capital of central China's Hunan Province, shoppers are picking up African specialty products. One customer samples a bit of body lotion made with shea butter sourced from Mali, which has a creamy white texture and sweet fragrance.

"Thanks to China's duty-free policy, raw material costs are 20 to 25 percent lower, and we pass the savings directly to consumers," said Zuo Dongnan, who has long been engaged in trade between China and Mali. "We currently import around 300,000 tonnes of raw materials every year and our import volume will continue to grow."

Also in Changsha, a permanent exhibition hall at Gaoqiao Grand Market displays products from all 53 African countries that have diplomatic ties with China. The hall also houses service centers, including a liaison office for China-Africa business institutions, providing year-round matchmaking for buyers and sellers.

Though landlocked, Hunan has emerged as a pacesetter in China-Africa economic cooperation through policy innovations. As the permanent host of the China-Africa Economic and Trade Expo (CAETE), the province has facilitated 512 signed projects worth 64.71 billion U.S. dollars across four expo editions. Its trade with Africa has maintained over 50 billion yuan (about 7.34 billion U.S. dollars) for years running.

Beyond the biennial expo at Changsha, organizers have taken the event overseas to Kenya, Morocco and other African nations, prescreening local demand for agricultural machinery, new energy vehicles and auto parts to ensure targeted business matchmaking.

Based on these platforms, Hunan has pioneered a trade settlement model using the free trade non-resident (FTN) account. A Hunan exporter can open an FTN account, into which a Nigerian importer directly deposits payment in naira. The Chinese firm then uses the naira to purchase goods from Nigerian suppliers, with no currency conversion involved. For Nigerian companies, this eliminates exposure to foreign exchange shortages or volatility of the U.S. dollar, allowing transactions to proceed smoothly.

Multiple companies in the China (Hunan) Pilot Free Trade Zone have also set up joint ventures with Nigerian partners, offering integrated services including transport, warehousing, distribution, processing, packaging, returns management and trade financing. A public overseas warehouse and a physical product display center have been established in Lagos, effectively reducing logistics costs and improving the client experience.

Since May, China has expanded its zero-tariff treatment to cover all 53 African countries with which it has diplomatic ties. However, international agricultural product trade faces inspection and quarantine requirements. To further ease the entry of African farm products, Hunan launched pioneering pre-assessment systems for African foodstuffs exported to China.

The mechanism allows Chinese experts to review production and processing standards before products are shipped, significantly shortening inspection periods. For small African exporters unfamiliar with China's strict pesticide residue and additive standards, prior assessment helps them adjust processes upfront, avoiding costly rejections or destruction of goods.

The results are visible. In 2025, Hunan's imports from Africa grew 27.2 percent to 30.92 billion yuan. Chinese consumers are now enjoying Benin's fresh pineapples, Ethiopia's coffee beans and Uganda's cocoa beans, while imports of South African macadamia nuts and Kenyan avocados are expected to expand further.

Lauren Johnston, an associate professor in the China Studies Centre at the University of Sydney, recently praised Hunan's policy innovations, dubbing it the "Hunan Model" for its potential to deepen and bring greater balance to China-Africa trade and industrial integration, and help Africa overcome key development barriers.

Leveraging the CAETE platform and the pilot zone for deep economic and trade cooperation between China and Africa, Hunan aims to reach 100 billion yuan in annual Africa trade by 2028 and cultivate over 150 enterprises each exceeding 100 million yuan in Africa trade, said Shen Yumou, director of the provincial commerce department.

Hunan will strengthen institutional innovation and policy integration, actively explore new business forms, models and mechanisms for economic cooperation with Africa, and scale up new forms of barter trade while promoting the integrated development of production, processing and trade, said Shen Xiaoming, the province's Party chief. Enditem

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