As global power dynamics shift, China and South Africa are strengthening their partnership to influence the emerging global order. South African President Cyril Ramaphosa’s recent visit to China, timed with the 2024 Forum on China-Africa Cooperation Summit, highlighted this commitment. During discussions with Chinese President Xi Jinping, both leaders reiterated their intent to deepen their strategic alliance, boost economic cooperation, and align their development agendas.
International Relations Minister Ronald Lamola shared with Sophie Mokoena that the visit resulted in significant agreements in energy, logistics, and the green economy. These agreements are set to enhance South Africa’s economic growth and further solidify trade relations, which currently stand at approximately 600 billion rands.
Mr. Lamola emphasised that the engagement focuses on continuous economic growth and job creation, addressing South Africa’s critical issues. Central to Africa’s development agenda is the African Continental Free Trade Area (AfCFTA), which necessitates strategic partnerships for infrastructure development. This includes constructing highways, extensive road networks, railways, and storage facilities such as dry ports and distribution centres across the continent. South Africa’s relationship with China is expected to drive this infrastructure development through mutual agreements and multilateral cooperation.
While China is seen as a friend to Africa, some Western perspectives view its influence with suspicion, fearing a potential takeover of African nations. However, African leaders appreciate China’s efforts in fostering unity among Palestinian factions and its active role in regional peace initiatives, including in the DRC, Sudan, South Sudan, and Cabo Delgado in Mozambique, through the SADC and AU platforms.
Trade between South Africa and China has always been unbalanced with the former acquiring higher-value manufactured commodities from China while exporting raw materials such as minerals and agricultural items. Ramaphosa considers that the large deficit that has resulted from this trade relationship is not sustainable over the long run. According to data from the U.N. database Comtrade, South Africa imported a little less than $25 billion worth of Chinese commodities in 2023 but sold China items worth around $12.5 billion – meaning trade values are skewed 2-to-1 in China’s favour.
To bridge this gap, the South African president called for more equitable trade relations that promote the growth of local economies and jobs. He also urged China to import more South African value-added products, like manufactured goods, processed minerals, and finished agricultural products, instead of just raw materials. Exports of value-added products would help South Africa advance its industrial base, move up the value chain, and lessen its reliance on volatile raw commodity exports. Finally, Ramaphosa urged Xi to give priority to funding South African projects that promote long-term, sustainable economic growth. Chinese are welcoming products from South Africa mostly beef, avocado iron and steel, wood pulp, fruits, nuts among other products.
South Africa aims to balance trade imbalances by focusing on beneficiation efforts, such as boosting local manufacturing, revitalising Special Economic Zones (SEZs), and leveraging other areas of potential benefit within the SA-China trade relationship.
China acknowledges South Africa’s role as a middle power rather than a developing nation, and thus adopts a more measured approach compared to its interactions with other African countries. A more aggressive stance could risk China’s international reputation and undermine its broader goals in Africa. Consequently, China is expected to integrate itself gradually into South Africa’s infrastructure to maintain its position. Both nations are committed to a mutually beneficial relationship, focused on economic development and avoiding exploitative practices.