Challenges for Ethiopia-China Trade

A recent issue of the Asian Research Journal of Arts & Social Sciences published an analysis titled "Post 2006 Ethio-China Trade Relations: Challenges and Prospects" by Getahun Zewde, Assosa University.

Ethiopia has a huge trade deficit with China, which can be largely explained by the unequal terms of trade between agricultural commodities (Ethiopia's major export to China) and capital goods (Ethiopia's primary import from China). Chinese dumping of low priced goods has also forced domestic Ethiopian producers out of business because they cannot compete on price with China. The author concludes that this situation makes it difficult for Ethiopia to achieve a genuine partnership with China.