- China’s Economic Outreach: China’s zero-tariff policy for least-developed countries strengthens its economic presence in the Global South, particularly in Africa and Asia.
- Geopolitical Strategy: This move is part of China’s broader geopolitical strategy, intensifying its rivalry with India, which also seeks influence in the region.
- India’s Distinct Approach: India, contrasting China’s approach, promotes development through multilateral partnerships with democratic allies, offering a balanced alternative for Global South nations.
As China amplifies its presence in the Global South with a zero-tariff deal for the world’s least developed nations, its strategy underscores a deepened solidarity with these regions—especially in Africa parts of Asia, and in the wider Indo-Mediterranean area. This initiative, set to begin in December, allows countries such as Bangladesh, Afghanistan, and multiple African states to export goods to China tariff-free.
The elimination of tariffs will reduce costs for these countries when shipping agricultural products like crops, fruits, and seafood to China—an enormous market. In return, exporters from these nations will save on transportation costs for goods such as household items, smartphones, and electric vehicles when exporting to countries that offer reciprocal access. According to the official Xinhua News Agency, this policy will apply to all nations classified as “least developed” by the United Nations that maintain diplomatic ties with China. Of the 43 beneficiary countries, 33 are in Africa, with others located in regions such as the Middle East (Yemen), the South Pacific (Kiribati and the Solomon Islands), and Asia, including Afghanistan, Bangladesh, Cambodia, Laos, Myanmar, Nepal, and East Timor.
Economist Liang Yan from Willamette University interprets this as a clear indication of China’s intent to consolidate power in emerging markets, contrasting sharply with Western protectionist trends.
China’s ambitions within the Global South reveal more than just economic outreach; they form a core element of its broader geopolitical strategy. By promoting an anti-Western narrative, Beijing aims to position itself as the preeminent ally of developing nations, offering economic alternatives outside Western-dominated frameworks. This fosters influence in international organisations, leveraging this solidarity for strategic voting power and support.
Competition for influence in the Global South has become a significant strategic focus also for India, intensifying rivalry with China and potentially escalating tensions. This dynamic persists despite recent attempts at easing border disputes, as seen in the meeting between Narendra Modi and Xi Jinping at the BRICS summit.
India follows a distinct path in its engagement with the Global South. In 2008, New Delhi launched the Duty-Free Tariff Preference (DFTP) Scheme to bolster trade with Least Developed Countries (LDCs) by providing preferential market access on about 98% of its tariff lines. This includes most products of export interest to LDCs, particularly in Africa and Asia. However, some items, such as certain agricultural products and minerals, remain excluded with no tariff concessions. This initiative reflects India’s longstanding commitment to fostering economic cooperation with LDCs, though its approach differs from China’s recent zero-tariff policy, which eliminates tariffs for all eligible countries.
While both powers aim to deepen ties with the Global South, India’s strategy is often more collaborative and multilateral. New Delhi has cultivated partnerships through “triangular cooperation,” involving the U.S., Japan, and European allies, positioning itself as a bridge between the Global South and democratic development allies. This approach aligns with India’s democratic governance and seeks to integrate these nations into a cooperative global framework, contrasting with China’s more unilateral influence.
This competition highlights the Global South as a critical arena, with China leveraging tariff-free access to bind economies closer to its orbit, enhancing its soft power and solidifying loyalties that could impact international alignments. In contrast, India’s model promotes inclusive growth and multilateral support, offering a democratic pathway that appeals to developing nations looking for balanced alliances.
Ultimately, this strategic tug-of-war between China and India reveals their competing visions for leadership within the Global South—China as a formidable economic ally with anti-Western undertones and India as a partner fostering development within a collaborative, democratic framework. As India assesses its trade policies in response, the Global South remains an essential axis in this nuanced rivalry, where economic initiatives intertwine with broader ideological influence.
