China-Africa zero tariff catalysis

In 2025, the global trade landscape will be shaken violently. The US tariffs on Chinese tires have soared to a historical peak, and with the EU's carbon tariffs and technical trade barriers, China's tire exports to the European and American markets have encountered a "frozen moment".

However, the crisis has given rise to change. Customs data show that in the first quarter of 2025, China's exports of passenger cars, trucks and buses, and off-road tires to Africa reached 121 million, 442 million, and 24,900 tons, respectively, a year-on-year increase of more than 30%.

China's leading tire companies, represented by Senqilin and Olais, are opening up new battlefields on the African continent and reconstructing the global industrial chain with three major strategies: capacity migration, technology upgrades, and localized layout.

The "cliff-like" rise in US tariffs on Chinese tires has directly hit the traditional survival logic of China's tire industry - relying on low-cost advantages to seize market share.

Data shows that the US market's share of China's tire exports has plummeted. At the same time, technical barriers such as the EU's "New Battery Law" and "Circular Economy Action Plan" have included the carbon footprint of tires throughout their life cycle into the access standards, further squeezing profit margins.

Africa has become a strategic highland for China's tire industry in the era of globalization 2.0. In terms of capacity migration, there are Senqilin Morocco factory, Yongsheng Rubber Semi-steel Tire Project, Olais Capacity Base, etc.

The deeper change lies in the reconstruction of the industrial chain. Chinese tire companies are building African factories into "smart green islands": overseas factories use photovoltaic power supply systems, and carbon emissions are significantly reduced. This "green smart manufacturing" not only circumvents trade barriers, but also reshapes the value label of "Made in China".

In June 2025, China implemented 100% zero tariffs on 53 African countries, directly promoting China-Africa trade volume to exceed 2.1 trillion yuan.

Under the catalysis of policy dividends, the African market presents structural opportunities: Demand stratification: mature markets such as South Africa and Nigeria prefer high-performance radial tires, while sub-Saharan countries rely more on wear-resistant truck and bus tires.

Enterprises need to implement a "one country, one policy" product matrix. But the challenges are equally severe. South Africa's 38.33% anti-dumping duty on Chinese tires reflects the rise of protectionism in some countries; the depreciation of the Nigerian currency has led to a sharp increase in accounts receivable risks.

In this regard, the leading enterprises have taken measures such as "US dollar settlement + local currency hedging" and participating in the design of the rules of origin of the African Free Trade Area (AfCFTA) and building a systematic risk control system, which are worth learning from. The breakthrough of China's tire industry in Africa is essentially a microcosm of the reconstruction of the global value chain.