By Phenyo Selinda
South Africa has taken a significant step towards boosting its economy through strengthened trade relations with China, following the signing of multiple agreements between the two countries. These new deals are set to increase the import of South African agricultural and manufactured products into the Chinese market, marking a crucial milestone in the trade partnership between the two nations.
President Cyril Ramaphosa, who concluded a state visit to China on Thursday, announced that eight key agreements were signed, focusing on enhancing trade, opening the Chinese market for South African products, and expanding cooperation in various sectors. Among the highlights of the agreements is a significant boost in the export of beef to China, alongside an improvement in the accessibility of South African manufactured goods in the Chinese market.
Boost to South African Beef Exports
One of the major achievements of the agreements is the breakthrough in beef export arrangements. South African beef exports to China have been fluctuating due to periodic outbreaks of livestock diseases, particularly foot-and-mouth disease, which often led to widespread bans on South African beef.
Addressing the media in Beijing, President Ramaphosa acknowledged the challenges posed by these bans and expressed satisfaction with the progress made during discussions with Chinese authorities.
“The importation of beef into the Chinese market has been a challenge due to livestock diseases such as foot-and-mouth disease. However, we were able to reach an agreement that if there is an outbreak, the restriction will only apply to the affected area, rather than a blanket ban on the entire country,” said Ramaphosa.
He noted that this new arrangement is expected to lead to a steady increase in South Africa’s agricultural exports, particularly beef, into China, fostering more consistent production within the country. “That is a great achievement because it will lead to the increase of our agricultural products coming into China, and we should see increased production in South Africa.”
This agreement is a significant development for South Africa’s agricultural sector, which has been working hard to expand its footprint in international markets, and China, as one of the world’s largest economies, offers tremendous potential.
Manufacturing Exports Get a Boost
In addition to agricultural products, President Ramaphosa highlighted a pivotal agreement that will make it easier for South African manufactured goods to enter the Chinese market. This move is expected to diversify South Africa’s exports to China, which have been dominated by raw minerals in recent years.
“The other area is for manufactured goods and products, to have an easier entry into China,” Ramaphosa explained. “With the agreement that we signed, we were able to ensure that China would enable more manufactured goods from South Africa to be brought in. That for us is an important development.”
This development is expected to have a significant impact on South Africa’s manufacturing sector, which has been seeking new markets for its goods. By providing easier access to China, the world’s second-largest economy, South African manufacturers could see a surge in demand, boosting production, job creation, and the overall economy.
Addressing the Trade Imbalance
Despite the positive developments, President Ramaphosa acknowledged that the trade balance between the two nations remains skewed in favour of China. He expressed his government’s commitment to addressing this imbalance by focusing on increasing the export of South African finished goods and products to China.
“At the moment, the trade is imbalanced and in favour of China, rather than in our favour,” he said. “We welcome the opening up of the Chinese market for more and more finished goods from South Africa. We want to upgrade that economic activity to a higher level, so we are able to bring in more finished mineral goods, products, or commodities into China and more finished agricultural products.”
This shift towards exporting more finished goods is a key component of South Africa’s broader economic strategy. The country has traditionally exported raw materials, but by focusing on value-added products, South Africa can capture more of the value chain and create higher-paying jobs at home.
Cooperation in Science, Technology, and Energy
In addition to trade agreements, the discussions between South Africa and China also focused on cooperation in science, technology, and innovation. President Ramaphosa highlighted China’s rapid advancements in technological development and the potential benefits for South Africa.
“We were able to reach an agreement on science, technology, and innovation in terms of cooperation in relation to innovation research, and we were able to have good discussions,” he said.
The cooperation will focus on sharing expertise and resources in scientific research and technological innovation, an area where China has made significant strides in recent years. This partnership will enable South Africa to leverage Chinese technological expertise to support its own development goals, particularly in sectors such as renewable energy and digital transformation.
Energy security, a critical issue for South Africa, was also on the agenda. “South Africa has been going through a huge challenge of energy security. China’s assistance in this regard is going to stand us in good stead,” President Ramaphosa added.
This partnership is expected to include technical assistance and investments in South Africa’s energy infrastructure, which has been under severe strain due to load shedding and ageing power plants. Strengthening the country’s energy sector is crucial for long-term economic growth and stability.
Strengthening Multilateral Cooperation
The discussions between South Africa and China also extended to global governance and multilateral organisations, with both countries reaffirming their commitment to cooperation through BRICS and other international forums. President Ramaphosa emphasised the need for reforms in global institutions such as the United Nations and international financial institutions.
“We also wanted enhanced cooperation on international issues in relation to our cooperation in BRICS. It is consolidated and solidified, and in other multilateral organisations such as the United Nations and financial institutions that there need to be reforms,” he explained.
South Africa and China, both members of BRICS, share a common interest in reforming global governance to make it more representative and equitable. Their cooperation in these forums is expected to continue to play a key role in shaping the future of international relations.
A Stronger Bilateral Relationship
President Ramaphosa described the visit to China as highly successful, noting that the agreements reached during the trip will lead to stronger economic and political ties between the two countries.
“Our visit has been hugely successful. We will see a lot of progress in the country in developing our relationship with China, remembering that China is the second-largest economy in the world. For us as South Africa, it is important for us to promote our relations with China,” Ramaphosa stated.
China is already South Africa’s largest trading partner, and the new agreements are expected to further enhance this relationship by expanding trade, increasing cooperation, and creating new opportunities for growth. As South Africa seeks to diversify its economy and reduce its reliance on raw materials, the partnership with China will play an increasingly important role.
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