Amanze ChinonyeChinese Ambassador to South Africa, Wu Peng, believes that trade with China will help alleviate the impact of the US’s 30% reciprocal tariffs on South Africa.
According to Wu, bilateral trade between China and South Africa reached $34.18 billion in 2024, with South Africa importing $21.9 billion worth of goods from China and exporting $12.2 billion, resulting in a trade deficit of $19.71 billion.
Join our WhatsApp ChannelThe ambassador noted that China’s relations with Africa are driven by its demand for raw materials and access to markets for its manufactured goods. However, he emphasized that China-South Africa trade is shifting from traditional exchange to industrialization, which will take time to enhance South Africa’s production capacity.
Trade Deficit and Value Addition
Since 2000, trade deficits have contributed to a net cash outflow of $114.83 billion from South Africa to China. Wu acknowledged the need for value addition in South Africa, stating that ”Rome was not built in one day.” He also highlighted China’s role in supporting South Africa’s industrialization and the need for reform of trade relationships to achieve a more balanced trade dynamic.
Diversification and Investment
South Africa is looking to diversify its export markets and has set up a support desk at the department of trade and industry. China has been South Africa’s largest trading partner for 15 years, contributing more than 20% to trade, while South Africa is Beijing’s biggest partner in Africa. Chinese enterprise investment in Africa is also on the rise, with companies maintaining over $3 billion in investments and $1.6 billion in new investments since the last Forum on China-Africa Cooperation.
Tariff Relief and Cooperation
Wu noted that China buys 80% of South Africa’s macadamia nuts, making it the biggest consumer of the product. He also echoed Agriculture Minister John Steinhausen’s remarks that China is negotiating the import of five types of stone fruit and will begin talks on peaches, plums, and apricots. The Chinese market will provide relief from tariff pressure and enhance diversification, Wu said.
Global South Unity
The 2024 Forum on China-Africa Cooperation sent a strong message of unity among the Global South to safeguard justice and development. Wu noted that 53 African countries have signed memorandums of understanding with China to work towards 0% tariffs as part of a “charter of win-win cooperation.” More than 30 have already signed economic partnership agreements, which he described as the “first step” to achieving duty-free access.
Wu emphasized the importance of multilateralism in combating unilateralism, protectionism, and economic bullying. He argued that trade with China has not been the major cause of South Africa’s export decline, stating that most refining of metals used to be done locally, but producers faced a price hike because of the country’s electricity crisis.
The ambassador’s remarks highlight the potential benefits of China-South Africa trade cooperation and the need for continued dialogue and collaboration to promote mutual benefit and development.
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