President Calls for Reduction of SA-China Trade Deficit

President Cyril Ramaphosa has emphasized the need to address the trade deficit between South Africa and China, despite the strong trading relationship between the two nations.

During official talks with Chinese President Xi Jinping on Monday in Beijing, President Ramaphosa highlighted the importance of restructuring South Africa’s trade to reduce the existing deficit. “We have seen an increase in our bilateral trade. However, as South Africa, we would like to narrow the trade deficit and address the structure of our trade,” said President Ramaphosa.

China is South Africa’s largest trading partner globally, with South Africa being China’s top trading partner in Africa. Bilateral trade between the two countries grew from R614 billion in 2022 to R692 billion in 2023.

President Ramaphosa underscored the need for close collaboration as both countries move into a new phase of their partnership. “As we enter a new phase of our partnership, we should continue to consult closely in pursuit of a just, equitable, and prosperous world,” he stated, adding that deepening mutual trust is key to future cooperation.

The President is currently on a State Visit to China, where he will also attend the Forum on China-Africa Cooperation Summit (FOCAC). South Africa and China maintain a Comprehensive Strategic Partnership (CSP), supported by a Ten-Year Strategic Programme of Cooperation (2020–2029).

President Ramaphosa expressed his support for upgrading the CSP to an All-Round Strategic Cooperative Partnership in a New Era, which he believes will further strengthen the political and economic ties between the two nations.

The President also urged for more sustainable manufacturing and job-creating investments, particularly following the inward procurement mission of Chinese companies last year. He acknowledged the growth in development cooperation between South Africa and China, which covers a broad range of sectors.

“Our two countries share many common objectives. Building on the firm foundation of solidarity, we continue to provide support in promoting our interests, those of the African continent, and the Global South,” said President Ramaphosa.

He reaffirmed South Africa’s commitment to the African Union’s Agenda 2063 and the pursuit of a better Africa and world, emphasizing the importance of progressive internationalism and the One China Policy.

Looking ahead to South Africa’s hosting of the G20 Summit next year, President Ramaphosa stated, “We will use this opportunity to focus global attention on the developmental challenges confronting Africa and the countries of the Global South.”