China called for deeper trade and investment ties with South Africa as it pledged to accelerate cooperation in industrialization, agriculture and market access.
Business lobby groups from the two nations on Tuesday formalized a pact aimed at boosting economic relations. The accord signed by Business Unity South Africa and the South Africa-China Economy and Trade Association is a key step toward helping South Africa diversify its exports, Chinese Ambassador to South Africa Wu Peng said at a ceremony in Midrand on the outskirts of Johannesburg.
“I hope that through today’s event, companies will find good partners and inject new impetus into expanding trade and boosting investment,” he said.
Pretoria is deepening economic ties with Beijing as the world navigates escalating tensions brought on by punishing trade tariffs introduced by President Donald Trump’s administration. While South Africa is negotiating to reduce a 30% levy on its exports to the US, China plans to remove tariffs on imports from almost all African countries to boost ties.
More than 30 African nations have signed framework agreements for zero-tariff treatment, Wu said.
“China is ready to work with South Africa to implement the zero-tariff measures as soon as possible, so that more South African products can enter the Chinese market under favorable treatment,” he said.
China is South Africa’s largest trading partner, with two-way flows between the two countries estimated at $53.9 billion last year, more than double those with the US, the next-biggest.
South Africa’s deepening relations with Beijing may come at the expense of access to critical technology. Earlier on Tuesday, Taiwan — which China regards as its territory — imposed restrictions on the export of semiconductor chips to South Africa. The move reflects both the island’s economic clout and a growing frustration with getting sidelined by China in the diplomatic community.
With China’s middle class expected to double to 800 million by 2035, Wu said Beijing’s partnership with Pretoria offers the chance to tap into “tremendous opportunities” in the world’s second-largest consumer market.
More than 200 Chinese companies have invested $11 billion in South Africa, creating over 400,000 jobs in sectors ranging from energy to digital technology, according to Wu. He encouraged Chinese car manufacturers to establish factories in the country.
for the twice-weekly Next Africa newsletter, and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.
With assistance from Mike Cohen.
This article was generated from an automated news agency feed without modifications to text.
