Tau’s China Visit Targets Duty-Free Access, Investment Boost for SA Exports

Trade, Industry and Competition Minister Parks Tau has embarked on a strategic working visit to China aimed at deepening trade ties, unlocking new export opportunities and accelerating foreign direct investment into South Africa.

The visit, which began today and concludes on Saturday, comes as South Africa intensifies efforts to diversify export markets, reduce over-reliance on traditional trading partners and position itself more competitively in fast-growing Asian markets.

Landmark Trade Agreement on the Agenda

At the centre of the visit is the signing of the China-Africa Economic Partnership Agreement (CAEPA), a framework expected to significantly enhance South Africa's access to the Chinese market.

Once implemented, the agreement will allow a range of South African products to enter China on a duty-free basis, improving price competitiveness for local exporters and supporting industrial growth at home. Key sectors expected to benefit include agro-processing, automotive components, mining value-added products, chemicals and manufactured goods.

Government officials say CAEPA is designed not only to boost exports but also to encourage Chinese investment into South Africa's industrial value chains, logistics infrastructure and green economy.

Driving Investment and Industrial Growth

During the visit, Minister Tau will engage with senior executives from Chinese companies that have expressed interest in investing in South Africa. These engagements are expected to focus on manufacturing, renewable energy, electric mobility, special economic zones and technology-driven industries aligned with South Africa's reindustrialisation strategy.

The Department of Trade, Industry and Competition (the dtic) said such investments are critical to job creation, technology transfer and strengthening South Africa's export capacity.

China Remains South Africa's Top Trading Partner

China has been South Africa's largest trading partner for more than 15 years, with bilateral trade spanning minerals, manufactured goods, agricultural products and machinery. The relationship has evolved beyond commodity trade, with growing emphasis on industrial cooperation, infrastructure development and investment-led growth.

"South Africa and China have a strong bilateral relationship that has been elevated to an all-round strategic cooperative partnership, as formalised during President Cyril Ramaphosa's official visit to China in September 2024," the dtic said in a statement.

Aligning Trade Diplomacy With Economic Reform

The visit underscores government's broader trade diplomacy agenda, which seeks to align international partnerships with domestic economic reforms, export expansion and inclusive growth. Officials say expanding access to the Chinese market is particularly important at a time of global economic uncertainty and shifting trade patterns.

Minister Tau's engagements are expected to reinforce South Africa's position as a gateway to African markets, leveraging China's interest in the continent while advancing national industrial and employment objectives.