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News24
7 hours ago
- Business
- News24
China's new trade offer looks generous. But SA must learn from the past
Chinese authorities may lower import tariffs for various goods from African countries. But SA needs to draw appropriate lessons from experience, says Wandile Sihlobo. South Africa's agricultural export focus means the country must always keep an open eye for any potential new market expansion. One country that has consistently been on our radar is China. The country's dominance in global agricultural imports, stable economy, large population, and current low penetration by South Africa's agriculture make it an ideal area for expansion. However, the nonexistence of a preferential trade agreement in agricultural products has disadvantaged South Africa relative to its competitors, such as Australia, Peru, and Chile, among others, which access the Chinese market at a tariff-free rate or with low tariffs. It is against this backdrop that we found the official announcement by the Chinese authorities that they would consider lowering import tariffs for various goods from African countries encouraging. While no official details have been released yet, we view the message as consistent with what the official representatives of the People's Republic of China have been communicating, particularly regarding agriculture. For example, in April, Wu Peng, current Chinese Ambassador to South Africa, stated that '…China and South Africa need to strengthen our bilateral trade and economic cooperation. Chinese government welcomes more South African agricultural and industrial products to enter the huge Chinese market.' China's signalling the willingness to absorb more South African agricultural products is only the first step in what will likely be a long journey, as trade matters generally take time. Ideally, the following steps should be a clear and pragmatic plan for reducing import tariffs and removing phytosanitary barriers that certain agricultural products continue to encounter in the Chinese market. Indeed, the work must be led by South Africa's Department of Trade, Industry, and Competition, as well as the Department of Agriculture, and at specific points, also the Department of International Relations and Cooperation. This will help ensure that China proceeds beyond statements to actual business collaboration. South Africa remains a small share in the Chinese list of agricultural suppliers, at about 0.4%. However, this current access in China is vital for the wool and red meat industry. China accounts for roughly 70% of South Africa's wool exports. There is a progressive increase in red meat exports, even though animal diseases currently cause glitches. The focus should be on expanding this access by lowering duties and other non-tariff barriers to encourage more fruit, grain, and other product exports to China. Still, it is essential to emphasise that the focus on China is not at the expense of existing agricultural export markets and relationships. Instead, China offers an opportunity to continue with export diversification. As we stated recently, the Trade Map data show that China is among the world's leading agricultural importers, accounting for 9% of global agricultural imports in 2024 (before 2024, China had been a leading importer for many years). The US was the world's leading agricultural importer in the same year, accounting for 10% of global imports. Germany accounted for 7%, followed by the UK (4%), the Netherlands (4%), France (4%), Italy (3%), Japan (3%), Belgium (3%) and Canada (2%). It is this diversity of agricultural demand in global markets that convinces us that South Africa's agricultural trade interests cannot be limited to one country but should be spread across all major agricultural importers. Importantly, the approach of promoting diversity and maintaining access to various regions has been a key component of South Africa's agricultural trade policy since the dawn of democracy. For example, in 2024, South Africa exported a record $13.7 billion of agricultural products, up 3% from the previous year. These exports were spread across the diverse regions. The African continent accounted for the lion's share of South Africa's agricultural exports, with a 44% share of the total value. As a collective, Asia and the Middle East were the second-largest agricultural markets, accounting for 21% of the share of overall farm exports. The EU was South Africa's third-largest agricultural market, accounting for a 19% share of the market. The Americas region accounted for 6% of South Africa's agricultural exports in 2024. The rest of the world, including the United Kingdom, accounted for 10% of the exports. In a nutshell, China's signalling the willingness to lower import tariffs is a welcome development. However, it will only become more substantial once more information becomes available. From a South African side, the relevant government departments should consider, through the local Embassy, sending an enquiry about unlocking this process. Ultimately, China is one of the focus areas in South Africa's long-term agricultural export diversification strategy, and any opportunity to further this plan should be pursued vigorously. Importantly, while China's offer looks generous, a country like South Africa needs to draw appropriate lessons from experience. Unilateral duty-free, quota-free market access is a double-edged sword: in the short to medium term, they can help a country increase the share of its exports in a significant market, but since these are not anchored in reciprocity, the largesse can disappear if there are frictions between the two parties, for example, over geopolitics. In short, non-reciprocal arrangements can lead to dependence and can easily be exploited by the benefactor as a means of political leverage to achieve strategic ends. While South Africa—and indeed African countries—should take advantage of this opportunity, we must aim to conclude a bilateral trade agreement with China that guarantees predictability and certainty and is durable. Wandile Sihlobo is chief economist of the Agricultural Business Chamber of South Africa (Agbiz).
The Star
13-06-2025
- Politics
- The Star
China, South Africa mark Int'l Day for Dialogue among Civilizations
JOHANNESBURG, June 13 (Xinhua) -- The Chinese Embassy in South Africa held an event on Thursday in Pretoria, the country's administrative capital, to mark the first International Day for Dialogue among Civilizations. The United Nations General Assembly in June 2024 adopted a China-sponsored resolution declaring June 10 as the International Day for Dialogue among Civilizations. Chinese Ambassador to South Africa Wu Peng said that the initiative comes at a time when the world is grappling with turbulence and transformation. The observance aims to promote mutual learning, solidarity, and solutions to global challenges, he noted. As a firm advocate of civilization dialogue, China has consistently translated its vision into concrete actions, said Wu. For instance, the Chinese language has been included in South Africa's education system and Chinese universities have established degree programs in indigenous African languages. "As the initiating country of the resolution on the International Day for Dialogue among Civilizations, China stands ready to work with South Africa and the international community to foster inclusive coexistence and mutual learning among civilizations, and jointly compose a new chapter for building a community with a shared future for mankind," Wu said. Nkosazana Dlamini-Zuma, a member of the African National Congress (ANC)'s National Executive Committee, said South Africa, with its unique struggle against apartheid and its commitment to peaceful transition, is a prime example of civilizations in dialogue. Dlamini-Zuma said South Africa and China have a long history of ensuring and pursuing peace. "As we move faster into a multipolar world, the international community must welcome this initiative by China to ensure dialogue among civilizations and peoples," she added. "Dialogue is a central feature of the foreign policy of South Africa and China. It reflects our shared commitment to diplomacy as the primary means of resolving conflicts," said Busani Ngcaweni, director-general of the National School of Government. Ngcaweni said the call for dialogue and the co-existence of civilizations offers a powerful path towards silencing the guns and achieving sustainable development for all. The event gathered around 50 participants, including representatives from government departments, the ANC, the South African Communist Party, think tanks, and foreign diplomatic missions in South Africa.
IOL News
12-06-2025
- Politics
- IOL News
China's Ambassador to South Africa celebrates International Day for Dialogue among Civilizations
China's Ambassador to South Africa, Wu Peng said the International Day for Dialogue among Civilizations aims to enhance global awareness of the vital importance of civilization, diversity and intercultural exchanges. Image: Supplied Dialogue among civilizations is a bond of peace, a driver for development, and a bridge of friendship. This was the message conveyed by the People's Republic of China's Ambassador to South Africa, Wu Peng, on celebrating the First International Day for Dialogue among Civilizations. The Ambassador spoke about this landmark achievement during an event hosted at the embassy in Pretoria on Thursday, which was attended by a delegation from the Government, including Dr Nkosazana Dlamini-Zuma and other dignitaries. In June last year, the 78th United Nations General Assembly adopted a resolution by consensus, which was initiated by China. It was co-sponsored by over 80 countries, including South Africa. Ambassador Wu said the establishment of this international day echoes the common aspiration of people from all countries for promoting dialogue among civilizations and progress of humanity. 'The world today is faced with turbulence and transformation. How different civilizations coexist harmoniously represents a critical issue of our era.' The ambassador added that more dialogue means less confrontation and greater inclusion reduces estrangement. The International Day for Dialogue among Civilizations aims to enhance global awareness of the vital importance of civilization, diversity and intercultural exchanges, to encourage the international community to strengthen mutual learning and solidarity, and to jointly explore solutions to global challenges, Wu said. He stressed that China has constantly upheld a civilization outlook, mutual learning, dialogue, and inclusiveness and has always been an active champion of inter-civilization dialogue. 'What has sustained Chinese civilization across 5,000 years is no accident. It is our ancestral conviction that harmony breeds prosperity, that diversity is strength…' The Ambassador added that true progress comes from mutual learning and enlightened integration. He said South Africa's success to a large extent lies in the traditional spirit of Ubuntu. 'This African wisdom teaches us that 'I am because we are', forging national unity through shared dignity. The Ambassador said this cultural affinity and convergence have established an essential framework of common values, facilitating intellectual and cultural dialogue not only between China and South Africa but also among all nations. 'Our world comprises over 200 countries and regions, 2,500 ethnic groups, and diverse religions. In this era of interconnected destinies, all nations and people should respect differences, embrace harmony in diversity, and pursue peaceful coexistence.' He said China stands ready to work with South Africa and the international community to actively implement the Global Civilization initiative. 'Together we can foster inclusive co-existence and mutual learning among civilizations and use dialogue to promote world peace and shared development, thus jointly composing a new chapter for building a community with a shared future for mankind,' Wu said. Dlamini-Zuma meanwhile hailed China, calling for the 10th of June to be known as the International Day for Dialogue among Civilizations. 'As we move faster and faster into a multipolar world, the international community must welcome this initiative by China to ensure dialogue among civilizations and peoples.' She pointed out that the Freedom Charter is emphatic: 'There shall be peace and friendship". She said the Freedom Charter speaks clearly to the principles and values of dialogue between civilizations.
IOL News
06-06-2025
- Business
- IOL News
Strengthening trade ties: South Africa must evolve beyond a market for Chinese products
South Africa and China have taken a firm step toward strengthening trade ties, with both nations agreeing to speed up efforts to make trade smoother and more efficient. Image: Sars South Africa and China have taken a firm step towards strengthening trade relations, with both countries agreeing to accelerate efforts to make trade smoother and more efficient. This follows a meeting between Chinese Ambassador to South Africa Wu Peng, SARS Commissioner Edward Kieswetter, and International Trade Administration Commission (ITAC) Commissioner Ayabonga Cawe in Pretoria on Wednesday. China is currently South Africa's largest trading partner, having overtaken the European Union in 2023. Bilateral trade between the two countries reached US$34.18 billion last year, significantly outpacing the EU's US$1.34 billion in trade with South Africa. However, despite the growth in trade, experts and economists have raised concerns about an imbalance in the structure of the relationship. In his weekly letter last year, President Cyril Ramaphosa also noted the need to boost South Africa's manufacturing capacity and increase exports of value-added goods. "There is an imbalance in the structure of our trade. South Africa exports mainly minerals and agricultural products to China and imports largely manufactured products from China." Kieswetter also expressed a vision for a partnership that goes beyond South Africa serving merely as a market for Chinese goods, advocating for increased Chinese investment in manufacturing and assembly operations within the country. 'China, as the largest trading partner to South Africa, is ideally suited to strengthen this long-standing relationship. I would like to see the relationship grow not only with South Africa as a marketplace for Chinese products, but as a destination for assembly and manufacturing by Chinese investors. South Africa is also ideally suited as a strategic partner into the rest of Africa.' Meanwhile, Peng described the relationship as an 'All-Round strategic cooperative partnership for a new era. 'China attaches great importance to developing economic and trade relations between China and South Africa, which in recent years have made great progress. Trade, investment, and personnel exchanges between the two countries have been increasingly strengthened.' ITAC Commissioner Cawe highlighted concerns about the unstable global trade environment and its impact on supply chains and key markets. He pointed to the risks of rising inventories leading to trade diversion, particularly for a small, open economy like South Africa. 'We remain open to engagement with our Chinese counterparts in securing the participation and co-operation of their exporters and other interested parties in such investigations, as a key trade-related element in our bilateral relationship.'he said. [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
16-05-2025
- Business
- IOL News
Chinese Ambassador Wu Peng delighted over South Africa's avocado shipment to China
China's Ambassador to South Africa, Wu Peng, during a previous interview with IOL. Image: Supplied Ambassador of China to South Africa, Wu Peng has expressed delight after this season's inaugural shipment of South African avocados successfully reached Shanghai, in the People's Republic of China, bolstering the unparalleled bilateral relations. For more than a decade, China has been South Africa's largest trading partner. This position has been held by China since 2008, when it surpassed the United States. China is also South Africa's largest trading partner in Africa, with bilateral trade between the two countries accounting for a significant portion of China's total trade with the continent. Diplomatic relations between Pretoria and Beijing were established on January 1, 1998. Throughout the past 27 years, the two countries have deepened their wide-ranging bilateral relations, which have since been elevated to a Comprehensive Strategic Partnership and underpinned by a new 10-Year Strategic Programmes of Cooperation (2020-2029). Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Ambassador Wu Peng has expressed delight as this season's inaugural shipment of South African avocados successfully reached Shanghai, China. Image: Supplied Commenting on social media platform X, the Chinese ambassador said the arrival of the South African avocados for this season marks a milestone in the Pretoria-Beijing agricultural cooperation. "Delighted to witness the season's first shipment of South African avocados reaching China! A milestone in our agricultural cooperation," Wu commented on X. Delighted to witness the season's first shipment of South African avocados reaching China! A milestone in our agricultural cooperation. — 吴鹏 Wu Peng (@AmbWuPeng) May 15, 2025 Last year, IOL reported that President of the People's Republic of China, Xi Jinping, had unleashed one of the Asian giant's diplomatic heavyweights to South Africa as ambassador plenipotentiary, with a mission to escalate the unparalleled trade, economic and political ties, improve people-to-people relations and contribute to Pretoria's extensive job creation drive. IOL was granted the first opportunity to sit down with the affable ambassador, former director-general of China's Department of African Affairs in the Foreign Ministry, just days after he took the reins at the Embassy of China in South Africa. The former ambassador of China to Kenya said South African wine, rooibos tea, aloe gel, and other quality products are now very popular on the Chinese market. 'Actually, before I came here, I saw rooibos tea in a five-star hotel in China. It costs you 60 yuan to get a cup, which is roughly R150. Of course, I bought myself a cup. It tastes really nice but R150 is a little expensive. That is why I think China should import more rooibos tea and bring the price down, so that more (people) can enjoy rooibos tea in China,' Wu told IOL during the interview last year. 'The Chinese government is committed to advancing high-level opening-up. We are ready to share our mega-sized market with all countries, including South Africa. It is estimated that by 2035, China will have 800 million people in the middle-income group." Minister of Agriculture, John Steenhuisen. Image: Henk Kruger/Independent Newspapers On Thursday, IOL reported that Minister of Agriculture, John Steenhuisen, has expressed satisfaction with the South African avocado industry's proactive steps towards international market expansion. Steenhuisen's enthusiasm comes on the heels of the season's inaugural shipment of the avocados to China, marking a significant milestone for the sector. Among Steenhuisen's core priorities is the enhancement of market access for South African agricultural products. Understanding that market access is paramount for the profitability and sustainability of the agricultural sector, Steenhuisen on Tuesday insisted that the Department of Agriculture must play a pivotal role in expanding and establishing new markets. Steenhuisen said this 'early bird shipment' to China was a testament to the hard work, innovation, and strategic foresight within South Africa's avocado industry. 'South Africa is positioned as a major player in the global avocado market thanks to the investment made by businesses like ZZ2 in cutting-edge packhouses and nurseries, Core Fruit's well-established expertise in exports, and Mission Produce's global reach,' he said. IOL News
