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Ethiopia's coffee ready to take bigger market in China thanks to zero tariff treatment

China

Ethiopia's coffee ready to take bigger market in China thanks to zero tariff treatment
China

China

Ethiopia's coffee ready to take bigger market in China thanks to zero tariff treatment

2025-07-06 17:58 Last Updated At:07-07 02:27

Ethiopian coffee exporters are set to see greater access to the world's second-largest economy following the announcement of China's zero-tariff treatment for nearly all goods from the country.

The announcement was made in June during the China-Africa Trade and Economic Cooperation Forum in Changsha, capital of central China's Hunan Province. It marks the expansion of a zero-tariff policy rolled out last year for the 33 least developed African nations to now include 20 additional countries from the continent.

Tracon Trading is one of Ethiopia's leading coffee exporters. For years, they've been shipping specialty beans across the globe. But China's move to lift tariffs has opened an even bigger door.

"It will make our coffee very competitive in China's market. If you think about it, let's say, Brazil coffee or Colombia coffee, which are the main competitors for our coffee, their duty in China is above eight percent. So Ethiopia [tariff] is coming to zero, it will make our coffee very competitive and to sell more volume of coffee in China's market because it's affordable to our clients, it's affordable to the consumers. Due to that, Ethiopia coffee is one of the famous brands [of] coffee all over China nowadays. So it's really, really good news what the (Chinese) government has done for us," said Seid Omer, Managing Director of Tracon Trading.

For years, Ethiopian coffee has been prized globally for its unique aroma and heritage, but stiff tariffs often slowed its momentum in Asian markets.

Now, Chinese demand for Ethiopian coffee is soaring, and with Latin American coffee prices on the rise, traders in Beijing and Shanghai are turning toward Africa's original bean.

"Coffee from Brazil and Colombia has been rising in price rapidly. But we Chinese all know that Ethiopia is the origin of coffee. Combined with the strong and friendly relationship between China and Ethiopia, in the coming year, many Chinese coffee factories and traders are expected to purchase large quantities of coffee from Ethiopia," said a Chinese coffee trader named Wang Jinfeng.

Behind this open trade policy is a broader strategic alignment. As Ethiopia joins BRICS, its government sees the tariff exemption not only as economic relief but as an opening to build sustainable, long-term access to key markets like China.

"With China's high market demand, especially for agricultural products like oil crops, previous trade restrictions are gradually being lifted. Through this zero-tariff agreement, we aim to secure long-term, sustainable access to the Chinese market. Our focus will be on strengthening trade relations with China and building a reliable export pathway," said Tsadik Tasew, a trade relations expert at the Ethiopian Ministry of Trade and Regional Integration.

Ethiopia's coffee ready to take bigger market in China thanks to zero tariff treatment

Ethiopia's coffee ready to take bigger market in China thanks to zero tariff treatment

The Chinese stock market closed lower on Monday, mainly due to shift in trade and the rolling out of new trading rules, said a market analyst Timothy Pope.

Chinese stocks closed lower on Monday, with the benchmark Shanghai Composite Index down 0.06 percent to 4,041.24 points.

The Shenzhen Component Index closed 1.16 percent lower at 15,416.80 points.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, fell 1.77 percent to close at 3,948.86 points.

The ChiNext Index, together with the Shenzhen Component Index and other indices, reflects the performance of stocks listed on the Shenzhen Stock Exchange.

Pope said regardless of the general downturn, some of the traders' shift from tech names towards cyclical stocks brought positive signs to the market.

"We did see a bit of a shift in trade on the Chinese mainland markets today, away from tech names and towards cyclical stocks. That shift had helped the Shanghai Composite Index stay positive for most of the session but it did slip into the negative just ahead of closing time. The cooler attitude to tech today had the Shenzhen Component down 1.2 percent and the ChiNext board down 1.8 percent. Instead of tech we saw gains for energy and financial stocks in the main, with the big banks and coal and oil majors contributing the most to the Shanghai index," he said.

China's stock exchanges began to follow revised A-share trading rules on Monday, which include extending after-hours fixed-price trading and unifying daily price limits for risk-alert stocks with other stocks across the main board. Pope said the changes of rules could also lead to market volatility to some extent.

"Mainland exchanges have also been rolling out those new set of trading rule changes today. In addition to some that we talked about, we have also the daily price limit for the so-called Special Treatment or 'risk-warning' stocks - companies flagged for financial trouble - has been doubled from 5 to 10 percent. That's going to affect a fairly small section of the market, around 150 stocks, but that is nearly 7 million investors. Brokerages are cautioning retail investors not to mistake the wider trading band for any sort of assessment of reduced risk, because many of these companies still face a real chance of being de-listed. Another change which took affect today was widened after-hours trading, which is now going to cover all A-shares and ETFs (exchange-traded funds), not just tech-board names," Pope said.

China stocks fall amid shift in trade, revised trading rules: analyst

China stocks fall amid shift in trade, revised trading rules: analyst

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