After the implementation of the global governance initiative, foreign trade companies will benefit significantly from expanding into the global southern market, and comprehensive operating costs can be reduced by 15%-30%.
This achievement is not a fantasy, but the benefits brought by the superposition of four policies: tariff reduction, financial support, customs clearance convenience, and project procurement.
Starting from May 1, 2026, China will implement a two-year comprehensive zero-tariff policy with 53 African countries that have diplomatic relations with Africa, becoming the first major economy in the world to achieve full zero-tariff coverage with Africa.
Previously, China had implemented a 100% zero-tariff policy for all least developed countries with diplomatic relations.
This measure allows export companies to no longer face tariff barriers when exporting their products to these countries. At the same time, all raw materials and intermediate products exported by African countries to China are tax-free, which reduces circulation costs in both directions and directly improves the local price competitiveness of Chinese products.
In the first month after the policy was implemented, China’s imports from Africa reached 95.13 billion yuan, a year-on-year increase of 15%, and positive growth for nine consecutive months.
Starting from 2025, small and micro export enterprises across the country will participate in export credit insurance for the global southern market and enjoy zero-cost government insurance platform, with the upper limit of compensation increased from US$100,000 to US$150,000.
Enterprises can obtain overseas receivable protection of up to US$150,000 without paying premiums, providing a powerful risk control network for small, medium and micro enterprises with an annual export volume of less than US$10 million.
Guangdong Province has gone a step further. According to the latest special fund policy in 2026, for small and micro foreign trade enterprises with an annual export volume of less than 10 million US dollars, the inclusive credit insurance premiums will be fully borne by the provincial finance, with a maximum subsidy of 30%. The annual upper limit for a single enterprise is 5 million yuan. Enterprises can obtain complete risk control services without bearing any credit insurance costs.
In terms of cross-border settlement, Shanghai’s offshore RMB foreign exchange trading pilot, which will be launched in 2026, has changed the previous situation where exports to countries in the Global South required the US dollar as the intermediate currency.
Six banks including ICBC, Agricultural Bank of China, and Bank of China have been authorized to support direct exchange of currencies of global southern countries such as Turkish lira, Singapore dollar, and Brazilian real.
Enterprises can directly quote and settle in RMB to avoid third-party currency exchange rate fluctuations, reducing exchange rate hedging costs by about 10%.
China and Brazil have gone a step further by supporting enterprises to open local currency accounts and studying direct transactions between RMB and real, which will directly reduce the exchange costs of relevant enterprises by 2%-3%.
Relying on the New Western Land-Sea Corridor, the China-Laos Railway and other southbound passages, customs in many places have launched customs clearance facilitation measures.
After the direct flight from Wuhan Yangluo Port to Indonesia was opened, the transportation time was shortened by more than 7 days, and logistics costs were saved by more than 300 yuan per ton of cargo. As of June 2026, it has exceeded 100 voyages.
Changsha Customs in Hunan Province pioneered the “shipping by container” model, saving 7 days and 300 yuan per car export.
Kunming Customs in Yunnan has fully implemented “advance declaration and fast railway” for the China-Laos railway, and the port logistics efficiency has increased by more than 40%.
The Guangxi border port has launched a 7-hour green channel for ASEAN fresh fruits to reach Guangzhou. The supporting small and micro export credit insurance premiums are 100% reduced, and the comprehensive foreign trade operating costs have been reduced by about 12%.
More than 1,800 practical cooperation projects have been implemented under the framework of the Global Development Initiative, and a total of more than 23 billion US dollars in various development funds have been mobilized. Procurement and engineering subcontracting opportunities in eight major areas including infrastructure, green energy, people’s livelihood services, and digital economy are open to Chinese foreign trade companies.
These projects are not just for central and state-owned enterprises, small and medium-sized enterprises also have the opportunity to participate.
For example, a company in Shandong that makes prefabricated integrated houses received intention orders from nearly 10 countries including Bosnia and Herzegovina, Saudi Arabia, and Costa Rica within half an hour at the Global South Economic and Trade Matchmaking Conference in June 2026.
The Ministry of Commerce made it clear at its regular press conference in June 2026 that it will regard the Global South as the core direction for the in-depth expansion of diversified foreign trade markets. In the future, it will also promote the negotiation and signing of joint development economic partnership agreements, expand mutual recognition of AEOs and other facilitation measures.
