China tries to sell Africa on its zero-tariffs approach
Starting today, China is scrapping tariffs on imports from 53 African nations. Yet Beijing’s zero-tariff policy is unlikely to narrow the continent’s growing trade deficit with China any time soon. Africa’s exports to China are primarily raw materials and critical minerals such as copper and cobalt, which are essential to making much of today’s technology. But China dominates the processing of these materials, meaning they are often exported back to Africa as finished products at a higher cost than the original inputs. While the move may have limited financial impact, it carries symbolic weight: China is positioning itself as a free-trade ally at a time when the US has used tariffs punitively. It is also worth noting the one African country that was not included on the list. China excluded Eswatini, the only African nation that maintains diplomatic ties with Taiwan.
“Stolen” grain creates beef between Ukraine and Israel
An Israeli grain importer said Thursday it turned away a cargo ship allegedly carrying 6,200 tons of stolen Ukrainian wheat, the latest development in what has become one of the week’s most charged diplomatic spats. It began on Tuesday with Ukraine accusing Israel of preparing to receive grain looted by Russia from occupied Ukrainian territories – and of having knowingly accepted similar shipments in the past. Israel initially pushed back, arguing that Ukraine hadn’t provided evidence to back its claims. It later reversed course, though, saying the cargo ship would have to dock elsewhere. What prompted Israel’s shift is up for debate. One possible reason is the fact that Ukraine has been sharing battle-tested drone expertise with US allies in the Gulf to counter Iranian drones in the US-Israeli conflict. Israel may have decided the beef with Ukraine over wheat isn’t worth the potential strategic cost.
Hormuz hits helium
Gas, oil, fertilizer, fuels – you already know that the Hormuz crisis has crimped supplies of these commodities. But the shutdown of the strait has also bottled up roughly a third of the world’s helium, much of which is produced in Qatar. This is a higher-pitched problem than you might think: helium is essential for the global semiconductor industry, which uses it for precise temperature control while making the microchips that are used in automobiles, electronics, and weapons. Spot prices for helium, which is hard to store for long periods, have more than doubled since the Iran war began. The supply crunch comes as chip-makers are already under pressure to keep up with demand for chips that can handle AI applications. Industry experts warn that unless the helium shortage deflates soon, the world’s top chip-makers may have to start cutting back on production, and increase prices in the end for users.
