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China, South Africa explore expanded trade

In a social media post, Chinese Ambassador to South Africa, Wu Peng, announced a meeting with Dr. Boitshoko Ntshabele, CEO of the Citrus Growers' Association of Southern Africa, and Fhumulani Ratshitanga, CEO of Fruit SA. The discussion focused on enhancing bilateral trade relations between China and South Africa.

Wu Peng stated on X (formerly Twitter), "In this turbulent world caused by trade protectionism, China and South Africa need to strengthen our bilateral trade and economic cooperation. The Chinese government welcomes more South African agricultural and industrial products to enter the huge Chinese market."

The Department of Agriculture responded positively to the ambassador's remarks, expressing hope for expanded access to the Chinese market. Wandile Sihlobo, chief economist at Agbiz, emphasized the importance of Wu's comments, highlighting China's prominent role in global agricultural trade. "Chinese officials' statements should always be taken with considerable seriousness, especially when it comes to matters of trade," Sihlobo said. He also noted that the ambassador's message invites South Africa to engage in discussions about diversifying China's agricultural import sources.

China is the world's largest agricultural importer, responsible for 11% of global agricultural imports in 2023. Despite this, South Africa's contribution remains small, at only 0.4%. Sihlobo pointed out that South African exports to China include fruits, wine, red meat, nuts, maize, soya beans, and wool, but there is potential for growth. He suggested reducing tariffs and addressing phytosanitary barriers to increase market access.

China's diversification of supply chains, particularly after US tariffs in 2018 and 2025, has led to increased imports from South America and Oceania. Economists suggest that South Africa should strategically position itself to capitalize on these changes. "This is an opening we cannot afford to squander," Sihlobo stated, urging South African authorities to engage China with a strategic export portfolio and negotiate the removal of trade barriers.

Agricultural stakeholders view this development as an opportunity to enhance South Africa's trade presence in Asia. South African Poultry Association CEO Izaak Breitenbach commented on the potential benefits for rural economies, job creation, and the agricultural export sector, while acknowledging the need for time and effort in these processes.

Source: Farmer's Weekly

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