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China’s tariff cuts for Africa boost trade and support wider yuan adoption

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China’s decision to eliminate tariffs on imports from most African countries, combined with rapidly expanding trade flows, appears set to boost the use of the yuan across the continent, supporting Beijing’s broader objective of building alternatives to the Western financial system.

Customs data show that China-Africa trade grew by approximately 18% last year. The removal of tariffs on imports from 53 African countries in May is expected to further increase trade flows and encourage payments denominated in yuan.

Research by the International Monetary Fund indicates that yuan usage tends to rise alongside growing trade ties with China. On Wednesday, Beijing announced new measures aimed at promoting the global use of its currency.

From Nigerian cattle bone pellets and Kenyan avocado oil to South African apples, Chinese ports are receiving greater volumes of African cargo following the tariff cuts. The trend is increasing demand for payments and currency exchanges between the yuan and local African currencies.

Although reliable data on yuan usage in Africa remain limited, adoption is being supported by expanding trade with China, new payment platforms and efforts by some countries to shift debt obligations into lower-cost currencies.

Birju Sanghrajka, chief executive of Standard Chartered Kenya, said yuan transactions were increasing but added that there were still few signs that the currency was displacing the dollar.

“We see it as complementary,” Sanghrajka said.

South Africa-based Standard Bank became the first African commercial bank to connect to China’s Cross-Border Interbank Payment System (CIPS) in November and processed $500 million in transactions during its first four months on the network.

“The transactions we have seen were mainly driven by import and export activities between China and Africa,” said Ives Yang, head of transaction banking sales at Standard Bank CIB.

“We are working to expand CIPS to more countries,” he added.

Beijing says the tariff exemptions are intended to support African exports.

“In an environment where unilateralism and protectionism are creating difficulties and challenges for African countries, China is leveraging the advantages of its enormous market,” Chinese Commerce Ministry spokesman He Yadong said.

Trade flow perspective

Bankers say the shift toward the yuan reflects growing trade volumes rather than a direct challenge to the dominance of the US dollar.

Standard Chartered Kenya has begun issuing yuan-denominated letters of credit. According to Sanghrajka, this allows Kenyan clients to obtain discounts by avoiding conversion costs associated with the dollar.

China and several other countries, including Russia, have promoted payment channels that bypass the dollar. The trend has drawn warnings from US President Donald Trump against abandoning the US currency.

“Part of what we are seeing globally today concerns how the dominance of the dollar can be reduced,” said Muda Yusuf, chief executive of Nigeria’s Centre for the Promotion of Private Enterprise, adding that China is actively promoting yuan-based payment systems.

“When you export to them, you receive your payment in yuan,” Yusuf said.

Reducing foreign exchange risk

According to the African Export-Import Bank, which signed an agreement last year to connect to CIPS, China now accounts for 20% of Africa’s external trade, up from 5% two decades ago.

Other institutions are also seeking to capitalize on the trend.

Togo-based Ecobank, which operates in 34 African countries, and the Bank of China are working to launch a payment product this year that will facilitate transactions between the yuan and local African currencies.

“China is building its own payment and settlement rails that can make transactions almost instantaneous,” said Ecobank Chief Executive Jeremy Awori.

The development is welcome news for investors such as Qu Ming, a Chinese national who owns Kenya-based Sanmark Limited. Moving from dollar-denominated transactions to yuan payments could benefit the avocado oil producer, which employs 50 people.

“This will help us because of the exchange rate,” Qu said, adding that borrowing costs could also decline because yuan interest rates are lower.

China’s position as the largest bilateral creditor to countries including Senegal, Ethiopia and Kenya is also contributing to wider yuan adoption across Africa.

Last year, Kenya converted three Chinese-financed railway construction loans from dollars into yuan, reducing annual interest costs by approximately $215 million. Zambia has announced that from late 2025 it will begin accepting mining royalties and taxes from Chinese companies in yuan to strengthen its reserves and help service debt owed to China.

Avocado exports to China

According to Chinese government officials, the country’s yuan-denominated imports and exports rose 14% year-on-year in April to 4.38 trillion yuan ($647 billion). However, authorities did not provide a separate figure for Africa.

The trend is also visible in Kenya. Avocado exports to China’s vast consumer market have increased from 10 to 20 containers per week in 2022 to around 200 containers today. Volumes are expected to reach 1,000 containers by 2030, putting China on par with Europe, which has long been Kenya’s largest export market.

Speaking at a packing facility just outside Nairobi, Sunripe Managing Director Thiku Shah said China could surpass Europe between 2030 and 2035. He also said a shift by Kenya toward yuan-denominated financing could accelerate the currency’s use in trade.

“If we can invoice in yuan, if banks can accept payment in yuan, and if we can find a buyer for the yuan we hold, that would be perfect,” Shah said.

Diplomacy

UK Prime Minister Andy Burnham pledges full support to Ukraine in meeting with Zelenskyy

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UK Prime Minister Andy Burnham has met with Ukrainian President Volodymyr Zelenskyy in Portsmouth, England.

Zelenskyy is the first world leader Burnham has met in person since taking office, with the prime minister committing to building a “firm partnership” between the United Kingdom and Ukraine.

Demonstrating their support, the two leaders toured a military base in Portsmouth where 200 Ukrainian troops are currently undergoing naval training exercises.

Burnham described his meeting with the Ukrainian president as “warm” and said he plans to visit Ukraine soon.

“We will build this together and address the various issues President Zelenskyy is facing, many of which we discussed today,” Burnham said.

The meeting follows an announcement by London that it will share intellectual property rights to assist Kyiv’s war effort.

The new prime minister announced that the UK will share the “Stone Cloak” electronic warfare system—which is fitted to drones to prevent detection—and will assist Ukraine in mass-producing the technology.

Burnham has focused primarily on domestic matters since replacing Keir Starmer, who faced criticism from elements within his own party for spending too much time abroad and focusing heavily on foreign affairs.

However, Burnham sought to signal continuity in Britain’s policy toward Ukraine. In one of his first phone calls after becoming prime minister last week, Burnham invited Zelenskyy to visit the UK “as soon as possible.”

Starmer spent his final full day as prime minister in Kyiv, where he announced £255 million in funding for Ukraine.

Speaking to Sky on Monday, Zelenskyy said his telephone conversation with Burnham had been “very good.”

The Ukrainian leader noted that Starmer had previously assured him that “the new government would maintain the policy of supporting Ukraine during the war.”

The new prime minister told the Ukrainian leader it was “no coincidence” that he was his first international visitor since moving into Downing Street.

“The purpose of this is to send a very clear message. We stand 100% with Ukraine, I personally stand 100% with you, and I will fully deliver on every commitment this country has made to Ukraine,” Burnham said.

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Ukraine targets first prototype of European Freyja missile defense system in early 2027

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As Ukraine continues to lobby allies for new weapons capabilities to counter Russian missile strikes, the country aims to have a prototype of the Freyja anti-ballistic system, developed in partnership with European allies, ready in the first half of next year.

David Aloyan, deputy secretary of Ukraine’s National Security and Defense Council and director of the Freyja project, stated—as reported by Reuters—that an international steering committee tasked with calculating research and development costs will meet for the first time in the near future.

The anti-ballistic coalition was officially established two weeks ago at a summit held in the French capital, Paris. The summit was attended by leaders of 10 European nations, including Ukrainian President Volodymyr Zelenskyy, alongside roughly 12 defense industry contractors.

Providing details on the timeline, Aloyan said: “We have an ambitious goal because we are working on a very tight schedule. We aim to have a viable prototype that can show its first practical results in the first half of next year.”

Ukraine remains chronically dependent on US-made Patriot air defense systems, which are currently the only weapons capable of reliably intercepting Russia’s hypersonic and high-velocity ballistic missiles. However, Patriot deliveries have faced persistent disruptions driven by political fluctuations, low inventory levels, and extended production cycles.

The Russian military intensified its ballistic missile strikes this month against the capital, Kyiv, and the southern port city of Odesa. Facing salvos of dozens of missiles, Ukraine was unable to destroy the majority of incoming targets due to a severe shortage of interceptor munitions.

The Ukrainian government has indicated that it is prepared to contribute a launch vehicle and an interceptor missile to the Freyja initiative. In comments made this month, President Zelenskyy remarked that the project has now become purely a “matter of testing,” expressing hope that the system will become operational within a year.

Kyiv expects its allies to provide specialized expertise and technology in advanced radars, sensors, and missile guidance and control electronics. Defense contractors participating in the project include Eurosam—the consortium behind the SAMP/T system—as well as Leonardo, Thales, and Saab.

Fire Point, the Ukrainian missile and drone manufacturer that developed the Flamingo cruise missile, announced that it will serve as the primary industrial partner for the project. The company disclosed last month that it had reached an agreement with German defense producer Hensoldt to supply the radar components required for the initiative.

The Freyja project stands out as an effort to construct a lower-cost alternative to the Patriot system, on which many European nations also rely. Other European air defense assets, such as the Franco-Italian SAMP/T and the German-made IRIS-T, have not yet demonstrated sufficient operational capability in intercepting ballistic missiles.

Zelenskyy likened the operational framework of the Freyja coalition to a Lego arrangement, in which defense industry leaders assemble interconnected components.

Emphasizing the flexibility of the design, Aloyan noted that manufacturers have been tasked with developing a system architecture featuring interchangeable components, stating:

“The core logic of this system is that it possesses an open architecture. If Denmark says, ‘I want a Freyja system configured with a Danish-made Weibel radar,’ that is possible. If Sweden states that it wishes to integrate a Saab system, that presents no issue either.”

Aloyan added that establishing a dedicated administrative body or fund to direct all project contributions and secure stable, continuous financing remains among the options under consideration.

The Ukrainian official stressed that direct corporate participation alongside sovereign governments would streamline bureaucracy, concluding: “The coalition must advance on practical grounds rather than political ones.”

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US expands Middle East air operations using German bases as regional casualties rise

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Germany continues to provide crucial logistical support to the US military as Washington prepares for a major expansion of the war against Iran, utilizing its extensive network of installations across the country.

According to a report by German Foreign Policy, US fighter jets and troops are being routed through Ramstein Air Base—mirroring operations conducted prior to the outbreak of hostilities and throughout the first 40 days of the conflict—where forces remain stationed ahead of an announced wave of heavy airstrikes.

Spangdahlem Air Base is playing an equally vital role in the logistical pipeline. F-16 fighter jets stationed at the site were redeployed last week to staging areas in the Middle East, having returned from combat missions in the region only a few weeks prior.

Meanwhile, Landstuhl Regional Medical Center—the largest US military hospital outside the United States—serves as a critical medical hub. In recent days, approximately one dozen US service members, including several with severe injuries, were evacuated to the facility for treatment.

Medical staffing at Landstuhl has been expanded significantly in anticipation of a further rise in casualties.

Ramstein

The US armed forces are drawing heavily on their military infrastructure in Germany to execute troop concentrations directed at Iran.

Ramstein Air Base near Kaiserslautern—the largest US Air Force installation outside the US and headquarters for US Air Force forces in Europe and Africa—is operating continuously to facilitate the deployment.

Ramstein has long drawn international attention for housing a satellite relay station used to control US military drone operations across Africa, the Near East, and the Middle East.

Data streams for other operational maneuvers are also routed through Ramstein, specifically those serving the war in Iran.

Furthermore, the installation operates as a permanent logistical turnstile for the conflict. Shortly after the outbreak of hostilties, Spanish military aircraft that were denied permission by Madrid to participate in the war effort were rerouted to Ramstein.

In contrast to the Spanish government, Berlin has raised no objections to providing logistical support for the military campaign against Iran.

On Wednesday, a US E-11A Battlefield Airborne Communications Node (BACN) aircraft landed at Ramstein after departing Robins Air Force Base in the US state of Georgia, before proceeding toward the Middle East.

The aircraft provides real-time relay and tactical coordination between fighter jets and bombers during airborne strike operations.

Spangdahlem

Spangdahlem Air Base, located in the Eifel region, is serving as a key node in reinforcing the US Air Force presence in the Middle East ahead of a comprehensive expansion of the war.

Last week, US F-16 fighters permanently stationed at Spangdahlem were dispatched to the Middle East.

Their movement was complemented by F-35 jets deployed from RAF Lakenheath, northeast of Cambridge, and additional F-16s launched from Aviano Air Base in northeastern Italy.

The Spangdahlem-based F-16s had returned from combat operations in the war zone just weeks earlier.

These aircraft are specialized in Suppression of Enemy Air Defenses (SEAD) missions, designed to neutralize hostile air defense systems.

David Deptula, a retired US Air Force lieutenant general and dean of the Mitchell Institute for Aerospace Studies in Washington, told the US military newspaper Stars and Stripes that deploying fighter jets in such large numbers from all three US Air Force units in Europe to the Arabian Peninsula was highly unusual.

However, Deptula noted that toward the end of the Cold War, the US Air Force maintained nine operational units in Europe rather than three, pointing to a long-term decline in overall force capacity.

Landstuhl

Alongside Ramstein and Spangdahlem, Landstuhl Regional Medical Center—the largest American military hospital outside the US—is being utilized with heightened intensity in connection with the war in Iran.

In recent days, approximately 12 severely wounded US service members were evacuated from Jordan to Landstuhl for specialized care.

The arrivals have drawn public scrutiny, in part because the Trump administration has reported US casualty figures far less frequently than previous administrations.

While the death of US military personnel must be publicly disclosed under statutory requirements, observers in the US note that these requirements do not extend to private military contractors, who constitute a significant share of personnel on US military bases.

Following recent admissions by the Pentagon that three US service members were killed in Iranian strikes near Muwaffaq Salti Air Base in Jordan, investigations by US news outlets revealed that roughly 100 US military personnel were wounded between June 7 and last weekend.

Material damage from Iranian retaliation

In addition to figures on wounded US military personnel, initial investigative media reports have begun detailing the extent of structural damage inflicted on American weaponry and military infrastructure.

As reported by The New York Times on Wednesday, Iranian forces concentrated their strikes this month on nine locations with a US military presence, down from 18 during the first 40 days of the war.

Muwaffaq Salti Air Base was struck four times. According to the newspaper, drone strikes destroyed three buildings, two hangars, and structures believed to serve as living quarters.

Tower 22, a US military outpost in far northeastern Jordan along the Syrian border, also sustained severe damage.

In addition, hangars and a radar system at two other military bases in Jordan were hit, as was King Hussein International Airport, where US personnel are stationed.

In Bahrain, at least one warehouse was damaged, while a military tent was destroyed at Erbil International Airport in northern Iraq, where US troops are deployed.

Ali Al Salem Air Base in Kuwait was also struck, and a radar system at Ahmad Al Jaber Air Base—which had been operational for only six months—was destroyed.

These incidents represent only a portion of the damage confirmed to date.

Undisclosed US casualties

Beyond Washington’s public statements, preparations behind the scenes are underscored by the recent deployment of more than 150 additional US medical personnel to Landstuhl Regional Medical Center.

Should US President Donald Trump order an expansion of US attacks, officials anticipate a parallel escalation in Iranian retaliatory strikes and a corresponding rise in US casualties.

These casualties will include severely wounded personnel who will be evacuated to Germany for medical treatment.

Servicemen killed in Iranian counterattacks are also likely to be routed through Germany before their remains are repatriated to the US. Flights operated by Air Force Mortuary Affairs Operations (AFMAO) carrying fallen personnel from the combat zone to the US routinely make layovers at Ramstein.

This procedure was followed during the recent repatriation of the bodies of four US soldiers killed in the Middle East. Flights from Ramstein to Dover Air Force Base in Delaware reportedly take between nine and ten hours.

Legal implications for Berlin

To expand a war of aggression that violates international law, President Trump has formally announced upcoming US strikes on civilian infrastructure—actions that constitute war crimes.

The announcement of an intent to order war crimes carries serious legal implications for the German government.

Germany continues to allow the US armed forces to utilize military infrastructure on its territory, including Ramstein, Spangdahlem, and Landstuhl, and grants overflight rights without hesitation.

According to Michael Riegner, professor of public law, international law, and comparative law at the University of Erfurt and director of the university’s Global Justice Clinic, the argument that this support carries no legal consequences is untenable.

Riegner argues that limiting Article 26, Paragraph 1 of the German Basic Law strictly to the Bundeswehr is legally unacceptable.

The constitutional clause mandates punishment for “acts tending to upset the peaceful relations between nations, especially an act preparing for a war of aggression.”

Riegner contends that anyone who assists in the execution of a war of aggression is guilty of aiding and abetting an unlawful act.

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