Trade Agreements Sa China

The interesting thing about the statistics is that trade flows are relatively reciprocal — Africa sells to China a little less than what China sells to Africa. In 2017, Angola was the largest exporter to China, followed by South Africa and the Republic of Congo. In contrast, South Africa was the largest buyer of Chinese products, followed by Nigeria and Egypt. As you can see, China has put in place diplomatic and tax incentives to encourage African companies to trade with China, which remains a market that wants to consume. African products are welcome in China and there is huge growth potential. Both nations have made steady progress in bilateral economic and trade cooperation. Since 2005, China has been granting duty-free treatments for certain products imported from Lesotho. The current volume of trade is about $100 million, with the volume of Chinese exports about three times higher than that of Lesotho to China. China mainly exports textile and electromechanical products to Lesotho and imports mohair, jewellery and precious metals. Botswana mainly exports primary products to China and imports intermediate goods and capital goods, mainly used as inputs for infrastructure development in the country. The increase in Chinese imports into Botswana`s domestic market has mainly replaced imports from other countries and Chinese exports of textiles, clothing and footwear (TCF) have gained market share thanks to Botswana`s TCF exports to the third markets, South Africa. Current bilateral trade is about $300 million per year. China`s overall commitment to Africa in recent years has been quite intense.

Chinese companies, in partnership with competent African governments, have invested heavily across the African continent in creating a series of free trade zones and special economic zones. In December 2010, South Africa was invited to join the BRICS group of emerging countries. [19] With the invitation, it was expected that South Africa would develop trade relations with other BRIC countries, including China. Some see BRICS relations as a potential competition with South Africa`s relations with the IBSA dialogue forum. [20] In July 2010, South African magazine Business Day reported that 45% of SABMiller`s growth would come from Chinese operations by 2014.