South Africa and China have signed a new economic partnership framework that will grant South African exports duty-free access to the Chinese market, in what is a major expansion of bilateral trade relations between the two countries.
Framework agreement sets stage for deeper cooperation
The agreement, formally known as the Framework Agreement on Economic Partnership for Shared Prosperity (CAEPA), was signed by South Africa’s Minister of Trade, Industry and Competition, Parks Tau, and China’s Minister of Commerce, Wang Wentao, during a Joint Economic and Trade Commission meeting. With this signing, South Africa becomes the 33rd African country to conclude such a framework agreement with China. China had extended the proposal last year to 53 African countries.
The CAEPA is a non-binding framework that sets the basis for deeper economic cooperation. It will be followed by negotiations on an Early Harvest Agreement, expected to be concluded by the end of March 2026. Once finalized, this agreement will provide zero-tariff access for South African exports to China and is expected to further stimulate Chinese investment into South Africa.
Expanding market access for South African exports
According to the Department of Trade, Industry and Competition, the framework covers cooperation in several key areas, including trade, investment, new energy, and multilateral cooperation. Both governments have emphasized that the agreement will be implemented in a manner consistent with World Trade Organization (WTO) principles and aligned with the development objectives of both countries.
“This agreement will enhance trade with the People’s Republic of China while increasing exports and rebuilding our industrial capacity,” Minister Tau said.
The two sides have expressed an intention to expand bilateral trade by promoting South African agricultural products and high-value manufactured goods in the Chinese market. South Africa already exports products such as citrus fruits and rooibos tea to China, and officials believe the agreement will open additional opportunities across sectors including mining, agriculture, renewable energy, and technology.
“As China–South Africa relations continue to deepen, new opportunities emerge for South African businesses seeking to enter the Chinese market,” Minister Tau said, noting the potential benefits for exporters and manufacturers.
As part of the implementation process, China will send an inward buying mission to South Africa and has invited the country to participate in the 9th China International Import Expo, scheduled to take place in Shanghai in November 2026. South Africa has also been invited to a steel investment promotion event aimed at attracting investment into the country’s steel industry.
China is already a major source of direct foreign investment in South Africa and South Africa remains the leading African destination for actual Chinese investments. Chinese automotive companies, in particular, have increased their presence in the South African economy, contributing to employment creation. At the same time, South African firms are showing growing interest in investing in China.
The government has stressed that the agreement is designed to identify complementarities between the two economies while safeguarding sensitive sectors. Negotiations under the framework will include provisions aimed at protecting South Africa’s industrial capacity.
Shifting global trade dynamics
The signing comes as the country strengthens ties with China, its second-largest trading partner, following the imposition of tariffs on certain South African goods by the United States. Relations between South Africa and the US have experienced strain in recent months, with US President Donald Trump putting 30% duties on exports.
Read more: Despite US tariffs, China’s trade surplus exceeds 1 trillion dollars
Minister Tau said the agreement and the outcomes of the Joint Economic and Trade Commission meeting signal the urgency both countries attach to expanding trade and investment. “These outcomes should provide a strong foundation for a mutually beneficial partnership and for our respective private sectors to do more business together,” he said.
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