China's ambassador to South Africa, Wu Peng, has highlighted the significant increase in South African exports to China since the introduction of Beijing's zero-tariff policy for African countries with which it has diplomatic relations. Speaking at the Kgalema Motlanthe Foundation's Drakensberg Inclusive Growth Forum, Wu Peng emphasized that this policy could support local industrialization and job creation in South Africa. The policy has led to a substantial increase in trade between the two countries.
According to Wu Peng, trade between China and South Africa reached nearly $15 billion from May to August, representing an almost 24% increase year on year. During the same period, South African exports to China grew by about 25%, outpacing the 23% growth in Chinese exports to South Africa. This growth has been driven by increased exports of various products, including agricultural goods, mechanical and electronic products, chemicals, and passenger vehicles.
Agricultural exports to China have been particularly strong, reaching nearly $500 million, an increase of more than 35% year on year. Wu Peng also noted that South Africa and China signed a new protocol in September covering South African cherry exports to China, with market-access negotiations for other agricultural products expected to follow. This development is expected to further boost South African exports to China.
Wu Peng argued that the zero-tariff policy could help South Africa diversify its exports beyond mineral resources and increase sales of higher-value products to the Chinese market. He also suggested that the policy could make South Africa a more competitive base for companies seeking to export to China, potentially attracting further investment from Chinese businesses. Several Chinese companies have already invested or expressed interest in investing in South Africa.
Wu Peng cited Chinese companies such as vehicle manufacturer Chery and cement producer West China Cement as examples of businesses investing or expressing interest in investing in South Africa. He believed that such investment could support local industrialization and create jobs in the country. The growth in trade and investment between China and South Africa has been driven by a range of factors, including national planning and locally driven development.
Wu Peng highlighted China's approach to local economic development, which is based on national planning combined with local governments developing strategies suited to their own resources and economic circumstances. China's five-year plans have helped coordinate national priorities and mobilize resources while allowing local authorities to pursue development opportunities in their respective areas. This approach has contributed to China's economic growth and could offer lessons for other countries.
Wu Peng also pointed to the strong relationship between South African and Chinese provinces and cities, with 66 sister-province and sister-city partnerships established between the two countries. He believed that local cooperation offered further opportunities to deepen economic ties and expand trade and investment between China and South Africa. China's large domestic market is expected to continue expanding, and Beijing intends to open it further to international trade during its next five-year planning period.
Key points
- South African exports to China have grown by 25% following the introduction of China's zero-tariff policy for African countries.
- The policy has led to increased exports of agricultural goods, mechanical and electronic products, chemicals, and passenger vehicles.
- The growth in trade and investment between China and South Africa could support local industrialization and job creation in South Africa.
