Deputy President Paul Mashatile says South Africa and its largest global trading partner have an opportunity to redefine their relationship for mutual benefit.
Speaking at the South Africa–China Economic and Trade Forum in Cape Town on Friday, he said the two countries have expanded co-operation across sectors, including tourism, mineral resources, environment, science and technology, education and culture.
“Economic co-operation remains central to government collaboration. Efforts are focused on restructuring trade to enhance value-added exports to China,” he said.
“This has positioned South Africa as China’s largest trade partner in Africa and its top global partner. As a result, bilateral trade grew by 6.4%, rising from $34.2bn in 2024 to $36.4bn in 2025.
“The work that we have done as governments has also paved the way for China to invest $8.11bn in 103 FDI [foreign direct investment] projects, creating a total of 5,694 jobs in South Africa.”
He said South African companies have collectively invested $689m into the Chinese economy in sectors including health, ICT, financial services, manufacturing and specialised services.
South Africa is keen to draw investments across various sectors, particularly in mineral beneficiation, the hydrogen economy and clean energy, ICT, textiles, and leather.
— Paul Mashatile, Deputy President
“However, there is still much work to be done to diversify our exports from raw commodities and to strengthen South Africa’s industrial base in electric vehicle and battery manufacturing.
“South Africa is keen to draw investments across various sectors, particularly in mineral beneficiation, the hydrogen economy and clean energy, ICT, textiles and leather.”
Mashatile said the signing of the framework agreement on economic partnership for shared prosperity will cement South Africa’s status as an attractive sourcing destination.
The vice-president of the People’s Republic of China, Han Zheng, said the current economic environment, beset with trade fragmentation and geopolitical tensions, made it doubly important for China and South Africa to strengthen ties in an already crucial strategic bilateral and trade relationship.
“Our co-operation in areas such as auto and home appliances has kept growing. In fields of various digital developments, we are seeing more highlights, which are yielding benefits for both of our people.”
Stavros Nicolaou of the SA Brics Business Council said the South Africa-China relationship is not only strategic but also deeply rooted in mutual respect, solidarity and shared development ambitions.
Read: China and India cannot be allowed to dominate SA’s auto sector
“China remains South Africa’s largest global trading partner and accounts for the single largest share of our Brics+ trade flows. However, recent data shows that our relationship is marked by both strong complementarities and structural imbalances that must be addressed with purpose.
“The trade deficit primarily reflects South Africa’s strong import dependence on manufactured goods, machinery, chemicals, electronics and transport equipment, while our exports to China remain heavily concentrated in primary commodities such as coal, iron ore, manganese and platinum group metals.”
He said the current imbalance is not a reflection of limited opportunity but underscores the urgent need to shift toward higher‑value, more diversified, and more competitive exports that match China’s sophisticated markets and evolving industrial needs.
“At the same time, China’s vast capabilities in industrial scale, technology, logistics and financing create immense opportunities for co‑investment, technology transfer, localisation and joint industrial development.”
He said the engagement at the forum allows both countries to confront the key barriers impacting South African business, such as non‑tariff measures, including standards and certification challenges, logistics and port inefficiencies, limited market intelligence and the need for product‑level go‑to‑market strategies.
Business Times
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.