South Africa is pushing for a better and balanced trade relations with China. This comes as China prepares to pitch its exports to a summit of African leaders in Beijing.
South Africa is China’s largest trade partner in Africa. However, last year, the trade imbalance became evident as imports from China overtook its exports. President Cyril Ramaphosa has now told his Chinese counterpart Xi Jinping that he wants to reduce the trade deficit between both countries.
Ramaphosa’s message indicates the possible challenge that China may face in trying to convince African leaders to export more especially after China reneged on its pledge from the last China-Africa Summit in 2021 to buy $300 billion of African goods in exchange for more exports.
China is under pressure to sell its goods to African countries. This pressure stems from a looming Western restriction on Chinese products like solar panels and electric vehicles. African countries are hoping to leverage on this pressure and push for more sustainable manufacturing and job-creating investments.
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South Africa is a member of BRICS, along with Brazil, Russia, India, and China. This places it in a strategic position to negotiate a favourable trade relation with the Chinese government. It will also seek China’s support in building up its infrastructure.
The China-Africa summit will also address China’s role as a a major creditor to African countries following concerns about growing debt profiles of its debtors.
