As the trade war between the United States and China escalates, freezing access to key US markets, China has begun a move to explore Nigerian and other emerging economies to bolster its global trade network.
Many product manufacturers in China have started to evaluate their options regarding international business partnerships.
This shift comes in the light of the tariffs imposed by both China and the United States, which have prompted companies to reconsider their trade strategies.
Recall that the huge tariffs, reaching a cumulative 145% on Chinese goods entering the US and retaliatory Chinese duties on American imports, have disrupted billions in bilateral trade.
The US-China trade conflict was ignited under US President Donald Trump. Chinese President Xi Jinping had also vowed not to back down, slamming retaliatory tariffs against the US and escalating the trade war between the two nations.
According to the World Trade Organization (WTO), the tariff war could slash US-China trade by up to 80%, with ripple effects threatening a 7% long-term reduction in global GDP if the world economy fractures into rival blocs.
Following the development, it was gathered that this has pushed China to seek new partners in Africa, Southeast Asia, and Latin America, to mitigate the impact of the ongoing war.
Nigeria, Africa’s most populous nation and a leading oil producer is said to be a prime target for China’s trade diversification, Pan-Atlantic Kompass had earlier reported.
Bilateral trade between the two countries has grown steadily, reaching $22.6 billion in 2024, according to the National Bureau of Statistics (NBS).
Also, China is Nigeria’s top source of imports, supplying 24% of its commodities, including machinery, electronics, and textiles.
In return, Nigeria exports crude oil, gas, and agricultural products like sesame seeds to China.
Sales manager David Du from speaker maker Zealot said an order from Skechers for 30,000 speakers to be distributed to their US stores was put on hold after Trump’s tariffs. But he said he can rely on other markets.
Zealot got a big and unexpected break in 2015, when an all-in-one speaker, power bank and emergency flashlight became a hit in Nigeria.
He added that its market in Nigeria is now twice as big as the US, accounting for 40% of total sales and taking in 45 containers monthly.
“We are as big as JBL” in Nigeria, Du said, referring to the Californian audio equipment brand.
Also, Kobe Huang, a sales representative at Shenzhen Landun Environmental Technology, which makes water filters and smart toilets, says that for now, European sales are up, but the U.S. market is “frozen.”
According to him, US customers and distributors haven’t cancelled orders, adding that: “They have asked us to hold on. We are holding on.”
Beyond Nigeria, China is also eyeing other emerging economies. In Southeast Asia, countries like Vietnam and Indonesia are absorbing Chinese exports redirected from the US, with trade volumes rising 12% in 2024, per ASEAN reports.
In Latin America, Brazil and Argentina are benefiting from increased Chinese demand for soybeans and beef, sectors heavily targeted by US tariffs.
