China and South Africa Agree to Pursue Balanced Trade and Increased Investments, According to Reuters

By Liz Lee

BEIJING – China and South Africa, whose leaders recently met in Beijing, have agreed to promote balanced trade and enhance two-way investments between their industrial and commercial sectors, as indicated in a joint statement released on Tuesday.

President Xi Jinping and South African President Cyril Ramaphosa convened on Monday, prior to the upcoming ninth forum on China-Africa cooperation. Both leaders emphasized the "great significance" of Ramaphosa’s visit for advancing bilateral relations.

During their discussions, Ramaphosa sought to address South Africa’s trade deficit with China and to review the country’s trade structure with Beijing. He advocated for more sustainable manufacturing initiatives and investments aimed at job creation.

China, as the world’s second-largest economy, is South Africa’s largest trading partner; however, last year’s trade figures showed that imports from China significantly exceeded exports.

In the joint statement, China expressed its commitment to enhancing job creation through initiatives such as recruitment conferences aimed at promoting local employment opportunities in South Africa.

The statement also highlighted plans to establish manufacturing bases close to relevant raw materials and to facilitate technology and skills transfers between the two nations’ businesses.

Furthermore, China is willing to share its expertise in poverty alleviation and rural revitalization, according to the statement from the Chinese foreign ministry.

Following their meeting, both countries signed a number of cooperation documents, covering topics such as the implementation of a satellite navigation system, housing and settlement, and export regulations for South African dairy products and raw wool to China.

The two nations also aim to expand cooperation in renewable energy, energy storage, and transmission and distribution. They plan to co-host a new energy investment conference organized by their respective chambers of commerce and associations.

However, the statement did not specify any new investment or financing commitments. In contrast, during a previous meeting in Johannesburg last August before a BRICS summit, Chinese power companies had pledged to assist with upgrades to South Africa’s nuclear power plants, extend the lifespan of its coal-fired power stations, and establish manufacturing facilities for transformers and solar panels in the country.

Previously, Ramaphosa announced that Beijing had offered a grant of 500 million rand for the power sector, although no timelines were provided.

In addition, the two leaders jointly urged the international community to support African nations in executing the African Continental Free Trade Agreement (AfCFTA), which aims to form the world’s largest free trade area and create a single continental market for goods and services, thereby aiding Africa’s integration efforts.