Facing a US tariff of 30 per cent from August 1, South Africa is intensifying efforts to significantly grow its exports to China and address a persistent trade imbalance.
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A high-level delegation, led by Deputy President Paul Mashatile, has been on a week-long visit to Beijing, seeking investments and pitching strategic opportunities to diversify the nation’s export basket beyond basic commodities towards higher-value products such as pharmaceuticals, automotive goods and green energy technologies.
In a speech at the South Africa China Investment Forum, held on the sidelines of the third China International Supply Chain Expo (CISCE) in Beijing earlier this week, Mashatile said South Africa’s trade deficit with China had risen from less than US$1 billion (7.2 billion yuan) annually between 1988 and 2000 to US$9.71 billion (69.7 billion yuan) by 2023.
“We need to address challenges such as access to the Chinese market due to factors like tariff and non-tariff barriers, distance and competition from other countries,” he said.
South Africa is seeing a growing trade deficit that heavily favours China, and Mashatile explained that tackling these challenges required expanding South Africa’s export portfolio, encouraging value-added exports and establishing a more balanced trade relationship.
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Observers acknowledged China’s crucial role as an alternative market but cautioned against it being a simple one-to-one replacement for the US, citing trade complexities, potential “chilling effects” on US investment and the risk of over-dependence.