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China-South Africa trade relations & implications

15 Nov '24
5 min read
China-South Africa trade relations & implications
China-South Africa trade relations & implications

Insights

  • China-South Africa trade relations are evolving, driven by BRICS collaboration.
  • China seeks African resources and market access, as US trade tensions grow. South Africa's exports to China are increasing, notably in wool and textiles.
  • The African Continental Free Trade Area (AfCFTA) boosts trade potential, especially in labour-intensive sectors like textiles.

However, the African continent also seeks to benefit from trade with China. Beyond continuous infrastructure investments, African nations aim to leverage infrastructure and technology transfers to increase their exports, particularly to China. The trade relationship between South Africa and China is strengthening, marked by several significant announcements made during the BRICS Summit in August ****. Among the highlights was the signing of agreements by Chinese companies to purchase South African products, totalling approximately $*.* billion.

Additionally, China donated energy equipment valued at $*.* million to South Africa, along with a grant of $**.* million to help address the country’s energy crisis. Across Africa, China is increasingly focused on importing agricultural products and manufactured goods from the continent, while also emphasising its interests in oil, critical minerals, and metals. The primary imports from China into Africa consist of manufactured goods, including electronics, clothing, appliances, and technology.

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