South Africa targets value-added exports and improved market access in China to strengthen trade ties and economic benefits.
South Africa is working towards addressing China’s specific market access requirements to maximise local exports, Deputy President Paul Mashatile said yesterday.
The total bilateral trade between China and South Africa increased from R614 billion in 2022, to R692 billion last year.
Speaking at the South Africa-China Economic Trade Association (Saceta) business gathering in Sandton, to launch the 2024 corporate social responsibility report of Chinese-funded enterprises in SA, Mashatile said the local economy should be geared towards exporting manufactured goods to China instead of raw materials.
Exporting manufactured goods to China instead of raw materials
“Improving trade connections between South Africa and China, benefits both countries directly and has a positive ripple effect throughout the region.
“Increased trade creates jobs, stimulates economic growth and improves living standards for the people of both countries.
“However, our trade structure is imbalanced. Last year, the value of China’s imports far exceeded its exports.
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“Total bilateral trade increased from R614 billion in 2022, to R692 billion in 2023, while China’s R146 billion deficits, remained the highest among any of the country’s trading partners.
“We intend to work with China in addressing the trade deficit and structure of bilateral trade by broadening its export basket, especially to export more value-added products,” said Mashatile.
South Africa “mostly exports minerals and agricultural products to China, while importing mostly manufactured goods”.
SA exports minerals and agricultural products
“At a time when African economies are becoming more integrated, China’s technological prowess may help Africa industrialise and export more than just raw materials.
“Instead of exporting raw agricultural items, South Africa may export processed foods that are more valuable.
“We further agreed that we must meet China’s specific market access requirements, such as full compliance with the General Administration of China’s regulations and standards.
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“However, China can assist by streamlining import procedures and lowering regulatory hurdles; China may become a larger market for our products, benefiting both South African producers and Chinese customers,” said Mashatile.
The Chinese ambassador to South Africa, Wu Peng, said the corporate social responsibility report of Chinese-funded enterprises in South Africa, marked the second edition following its first release in 2018.
“This report highlights the substantial contributions made by Chinese-funded enterprises in recent years, towards the development of South Africa.
Development of SA
“This includes efforts to improve the livelihoods of local communities, protection of the environment and support various sector,” said Wu.
“It serves as a vivid demonstration of how Chinese-funded enterprises faithfully implement the principle of sincerity, real results, amity, good faith – taking the right approach to friendship and interests, as proposed by President Xi Jinping.”
The Saceta, entrusted with the compilation of the report, is a nonprofit entity, voluntarily established by Chinese-funded enterprises in South Africa.
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