Shibhaljazeera Net | Economy
China is increasing its influence in Afghanistan and maintaining good relations with the country after the United States lost control in 2021. China holds regular ministerial meetings and discussions with Taliban leaders about ways to develop mutual trade and massive Chinese investments in various sectors, including roads, copper, and more.
In the latest negotiations between China—the first country to appoint an ambassador to Kabul—and Afghanistan, Beijing offered the Afghan capital access to its vast sectors of construction, energy, and consumption “without tariffs,” according to reports from Bqash. This comes as resource-rich, diplomatically isolated Afghanistan seeks to open markets abroad.
The sale of lithium, copper, and iron minerals from Afghanistan to fuel China’s massive industries in batteries and construction is expected to support the Afghan economy, which the United Nations has described as nearly collapsed. It is also expected to provide a vital income source for the Afghan people, who have so far struggled due to the freezing of their funds under U.S. directives following the withdrawal of U.S. military forces in 2021.
The Chinese believe that the sale of lithium, copper, and iron deposits in Afghanistan could seriously help stabilize the Afghan economy and provide a desperately needed revenue flow amid the freezing of Afghanistan’s central bank reserves abroad.
Accessing Wealth and Exploiting Borders
According to the Chinese Ambassador to Afghanistan, Zhao Xing, China will provide Afghanistan with 100% tariff-free treatment.
Chinese customs data indicates that Afghanistan exported goods worth $64 million to Beijing in 2023, with pine trees accounting for 90% of the total. The Afghan government aims to find foreign investors to help diversify its economy and take advantage of its mineral wealth.
Research reports suggest that China’s advantage lies in going where others don’t, seeking mutual benefits. According to Bqash, Beijing has become the first country to appoint an ambassador to Afghanistan, while Afghanistan’s envoy to Beijing, along with dozens of other diplomats, presented his credentials to the Chinese president.
China follows an approach of ambassador exchanges without official recognition, allowing it to maintain relations with Afghanistan while not separating from the stance of the rest of the world.
Reports indicate that Beijing is keen to access Afghanistan’s untapped mineral wealth, open a market for Chinese goods, and show interest in Afghan oil.
Earlier, the Afghan government announced that Chinese companies planned to invest half a billion dollars in solar energy in Afghanistan.
While the two countries share a 76-kilometer border, both sides are working on a 300-kilometer road under construction that will connect Afghanistan’s Badakhshan province to the Chinese border, further boosting trade, which is currently valued at $1.5 billion annually.