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.