A high-ranking delegation from South Africa is in Beijing, advocating for increased bilateral trade and seeking additional Chinese investments before the imposition of a 30% tariff on South African exports that began in August.
At the China International Supply Chain Expo (CISE) Forum last week, South African Vice President Paul Mashatile addressed the growing trade deficit with China, which has ballooned to over $9.7 billion since the early 2000s, down to under $1 billion now.
“We need to tackle issues like tariffs, non-tariff barriers, and challenges posed by distance and competition from other nations. Access to the Chinese market is a particular concern,” Mashatile noted.
Experts had predicted that Mashatile might be let down by China’s reactions, especially considering that Chinese consumers already purchase $30 billion worth of goods from South Africa annually, which surpasses what the U.S. buys, leaving little room for major increases.
China might be open to importing certain agricultural products from South Africa, yet they are quite protective of lucrative markets that South Africa aims to penetrate, particularly in fields like digital technology and pharmaceuticals.
South Africa is also facing stiff competition from neighboring countries. Meanwhile, China’s economic difficulties have led to reduced demand for imports that extend beyond agriculture and raw materials.
Moreover, as one of the largest investors in South Africa, China’s investments may be limited, given the emphasis on renewable energy, infrastructure, and the digital economy, areas that Mashatile has highlighted.
On the tourism front, there appears to be potential for expansion. South African Tourism Minister Patricia de Lille joined the Beijing delegation, mentioning to her Chinese audience—who are significantly favored by the Communist government—that tourism can strengthen personal connections, which may facilitate business dealings.
Additionally, De Lille has suggested utilizing the Belt and Road Initiative (BRI) to attract more tourists. One goal of her visit was to understand what Chinese tourists seek, enabling South African businesses to cater to their preferences.
