Balanced trade between South Africa and China

As diplomatic ties between the People’s Republic of China and South Africa mark 26 years, these relations continue to be cherished and strengthened.

The words of Minister of International Relations and Cooperation Ronald Lamola, “We are optimistic about the future of our partnership and look forward to further collaboration for our mutual benefit and the benefit of our people”, sum up the foundation these diplomatic ties lie on.

ALSO READ: China welcomes Cyril – and tightens ties with 8 agreements

With China’s economy rivalling that of the United States, China remains a strategic partner for South Africa. Both enjoy strong trade relations and China is South Africa’s largest trading partner.

Therefore, with President Cyril Ramaphosa being invited to China for a state visit – following President Xi Jinping’s visit last year – shows how these two countries value each other and their diplomatic ties.

Understanding that South Africa serves as an entry point for China into the African continent because of various factors including South Africa being more advanced in terms of its economy and infrastructure compared to most of its African counterparts, it is not surprising that China sees a golden opportunity to expand its economic muscle through making inroads to identify worthwhile investments within South Africa.

The relationship of these two countries is of paramount importance to the advancement of these countries and their people.

Through mechanisms such as the China-South Africa Joint Working Group and the Joint Economic and Trade Committee, the current trade structure stands to be improved and South Africa stands to see the export of its value-added goods increasing while market access expands as well.

By joining forces and strengthening the two-way investments in manufacturing, the two countries will further industrialise their economies, unlock opportunities of transferring skills and create jobs.

In addition, the diplomatic ties of the two will further deepen cooperation in traditional fields such as agriculture, health, medical sciences and infrastructure development, among other things.

ALSO READ: Ramaphosa visits China’s Shenzhen to draw inspiration for technology and innovation

However, in a more interesting development, for Ramaphosa to call for a more balanced trade that addresses South Africa’s trade deficit with China, is a progressive step that deserves salutation.

For in so doing, a well of economic opportunities will overflow for South Africa. With both countries being against unilateralism, multilateralism continues to be on the agenda.

And with both nations valuing multilateral relations to address problems of common interests, China and South Africa’s relationship is the perfect alliance to make that a reality.

This is even evident with China’s commitment to support South Africa in its 2025 G20 presidency and its support to ensure the full integration of the African Union within the G20 grouping.

As China continues to play a vital role in the global sphere of politics, its relationship with South Africa must be guarded and preserved at all costs, for it creates space for South Africa to grow its global significance and strategic influence in matters of global importance.

And with the mutual agreement that both countries will intensify experience sharing and learning on state governance, South Africa should not shy away from learning the ropes of building a modern socialist country in all respects as China serves as the pathfinder.

• Mthembu is an independent commentator