After the Taliban regained power in Afghanistan in 2021, it was questioned by the international community for human rights issues and was widely isolated. However, the country ruled by this regime has rich mineral resources, which is very attractive to countries with strong demand for minerals such as China. Recently, China announced that it would provide zero tariff treatment to Afghanistan, so that its products can directly enter the Chinese market, promote the recovery of Afghanistan's economy, and ensure the security of China's supply chain. Afghanistan hopes to improve the current "basically collapsed" economic situation by exporting resources in exchange for foreign exchange, while China expects to obtain more key resources such as lithium and copper through this policy to promote the development of new energy and other fields.

Specific measures: The Taliban is allowed to export zero tariffs, mainly resource products

On October 24, Zhao Xing, Chinese Ambassador to Afghanistan, announced through social media that China will provide zero tariff treatment for all Afghan tariff products, and released a photo of him and Abdul Kabir, Acting Deputy Prime Minister of Afghanistan, symbolizing the further deepening of China-Afghanistan cooperation. According to Chinese customs data, Afghanistan exported $64 million worth of goods to China in 2022, 90% of which were pine nuts. However, the Taliban government said it would further expand export varieties and promote the export of mineral resources to attract foreign investment and achieve economic diversification.

Since taking office, Zhao Xing has met with Taliban officials many times to discuss cooperation in areas such as minerals, oil and trade. A number of Chinese companies, including China Metallurgical Group Corporation, have begun to operate in Afghanistan and negotiate with Afghan officials on mineral resource development projects such as copper mines. In August this year, Chinese official media also reported on the reconstruction activities of Chinese companies in Afghanistan, showing the activeness of Chinese companies in the Afghan market.

Future prospects: Integration of China-Afghan cooperation with the "Belt and Road" framework

The Taliban government not only seeks resource exports, but also tries to occupy a place in the "Belt and Road" initiative. In October last year, Afghanistan's acting commerce minister publicly stated that the Taliban plans to join the "Belt and Road" initiative and hopes to become part of the "China-Pakistan Economic Corridor". The China-Pakistan Economic Corridor is a key project connecting China's Xinjiang and Pakistan's Gwadar Port. If Afghanistan can join this $62 billion project, it will achieve regional connectivity and drive the development of industries such as transportation and logistics, providing support for its economic recovery.

China's zero tariff policy will take effect on December 1, benefiting the least developed countries that have established diplomatic relations with China. At the African Summit held in September, Chinese President Xi Jinping announced the policy and expressed his hope to support the development of these countries by opening up the market.

Challenges: Human rights and security issues test China-Afghanistan cooperation

Although China-Afghanistan economic cooperation shows a mutually beneficial prospect, it also faces multiple challenges. First, the international community still has great concerns about the human rights issues of the Taliban. In particular, its policies on women's and children's rights have put Afghanistan under pressure from public opinion at the international level. While deepening economic cooperation, China needs to carefully balance international influence and avoid attracting criticism from the outside world.

Second, Afghanistan's complex security situation and frequent violent conflicts pose a potential threat to the investment and personnel safety of Chinese companies. Chinese companies' businesses in Afghanistan must face the local turmoil, and it is not easy to ensure the smooth progress of projects. These security issues will be the focus of attention of Chinese companies and the government.

Can the zero tariff policy promote Afghanistan's economic recovery?

For Afghanistan, China's zero tariff policy provides it with an opportunity to reshape its economy. Through the export of resources such as lithium and copper, the Taliban government may gradually establish a more stable source of income. At the same time, the gradual deepening of China-Afghanistan relations under the framework of the "Belt and Road Initiative" also makes Afghanistan a key node in regional economic connectivity.

In the future, whether China-Afghanistan cooperation can bring long-term economic growth to Afghanistan still depends on whether the Taliban regime adopts a more inclusive development policy to gain wider support and recognition internationally.