China-South Africa Partnership Delivers Results as Trade, Investment and Zero-Tariff Opportunities Accelerate

By: Austin Menzi Moyo Snr

What was agreed between China and South Africa during President Cyril Ramaphosa’s State Visit to China in September 2024 is increasingly translating from diplomatic commitments into practical economic opportunities, with trade, investment, agriculture, energy and industrial cooperation gaining momentum.

The 2024 State Visit established an important framework for taking China-South Africa relations into a new phase. Among the commitments were efforts to improve the structure of bilateral trade, increase South African exports of value-added products, expand two-way investment, encourage manufacturing closer to sources of raw materials, facilitate technology and skills transfer, and create employment.

Two years later, there is growing evidence that these commitments are beginning to produce tangible outcomes.

According to South African government figures presented at the South Africa-China Economic and Trade Forum in March 2026, bilateral trade increased by 6.4%, from US$34.2 billion in 2024 to US$36.4 billion in 2025. Chinese investment in South Africa has also grown substantially, with US$8.11 billion invested across 103 foreign direct investment projects, supporting 5,694 jobs, according to Deputy President Paul Mashatile.

South African companies have also been expanding their presence in China, with investments of about US$689 million reported across sectors including health, ICT, financial services, manufacturing and services.

These developments give practical meaning to the 2024 commitment to build a more balanced and mutually beneficial economic relationship.

Zero tariffs open a new chapter for South African exporters

Perhaps the most important development to emerge from the broader China-South Africa economic agenda in 2026 is China’s temporary zero-tariff preference scheme for qualifying South African exports.

The scheme took effect on 1 May 2026 and provides qualifying South African goods with zero customs duties when entering the Chinese market, subject to the applicable tariff schedule and rules of origin. SARS has subsequently established the operational framework for issuing certificates of origin.

The arrangement currently runs until 30 April 2028 and is regarded as a transitional measure while negotiations continue towards a broader China-Africa Economic Partnership Agreement involving SACU.

This could become an important catalyst for South African agriculture, manufacturing and mineral beneficiation.

The opportunity is particularly significant because China is one of the world’s largest consumer markets. Lowering the tariff cost of qualifying South African products can make exporters more competitive while creating an incentive for producers to increase volumes, improve processing capacity and develop products specifically for the Chinese market.

The South African government has stressed that the longer-term objective is not simply to export more raw commodities, but to increase value-added exports and industrial production.

Agriculture is already opening new doors

Agriculture provides one of the clearest examples of how the relationship is developing.

In September 2026, South Africa secured a new market-access protocol allowing its cherry producers to export to China for the first time.

The agreement was signed in Beijing on 8 September during the ninth Sanitary and Phytosanitary Ministerial Meeting between the two countries.

The Department of Agriculture said China imported approximately 586,900 tonnes of cherries worth US$3.3 billion in 2025, highlighting the scale of the potential market.

South African authorities estimate that the opening of the Chinese market could stimulate additional investment in cherry production and contribute approximately 600 new jobs.

At the same time, negotiations to open the Chinese market to South African blueberries are at an advanced stage, with the aim of finalising a protocol before the end of 2026.

This is precisely the type of development envisaged by the 2024 State Visit, which identified increased market access for South African agricultural products as an important part of restructuring bilateral trade.

Chinese automotive investment strengthens South Africa’s industrial base

The automotive sector is another area where the partnership is becoming increasingly visible.

Chinese automotive companies have been expanding their manufacturing and localisation activities in South Africa, supporting the country’s ambition to develop stronger local supply chains.

A significant recent development has been Chery’s acquisition of a manufacturing facility in Rosslyn, Pretoria.

In August 2026, Chery brought 23 Chinese component suppliers to South Africa to meet local suppliers and explore opportunities to establish a more localised automotive supply chain.

This is important because the economic benefits of an automotive investment extend beyond vehicle assembly. They can include component manufacturing, engineering, logistics, technology transfer, technical training and opportunities for South African small and medium-sized enterprises.

The development reflects the direction agreed in 2024, when China and South Africa encouraged investment in manufacturing bases close to sources of raw materials and highlighted skills transfer, technology and employment creation.

Energy cooperation is moving towards investment

Energy is another major area of future opportunity.

In August 2026, South Africa led a high-level investment mission to China focused specifically on electricity and energy infrastructure.

The mission sought to connect Chinese industrial and technological capabilities with South Africa’s requirements under the country’s Integrated Resource Plan 2025.

The Department of Electricity and Energy said the mission generated a pipeline of investment interest, including interest from six major energy-sector original equipment manufacturers.

The discussions cover areas linked to energy infrastructure, generation capacity, grid modernisation, transmission and industrial development.

This takes forward another important element of the 2024 cooperation agenda, which identified new-energy investment and closer cooperation in renewable energy and related technologies as areas of strategic importance.

From commodities towards value-added production

Despite the progress, South Africa’s government recognises that much more needs to be done.

The country’s exports to China remain heavily influenced by commodities, and government has identified diversification and greater value addition as priorities.

The next phase of cooperation is therefore expected to focus increasingly on sectors such as mineral beneficiation, electric vehicles, battery manufacturing, renewable energy, hydrogen, ICT, textiles, agro-processing and advanced manufacturing.

South Africa is also seeking to attract investment that uses the country’s raw materials, infrastructure, skills and access to the African market to produce higher-value goods locally.

The China-South Africa economic relationship could consequently develop beyond the traditional model of South Africa exporting resources and importing manufactured products.

The objective is to create more integrated industrial value chains in which South African businesses participate in production, processing, technology, logistics and exports.

The next opportunity: a deeper economic partnership

The momentum accelerated further in February 2026 when South Africa and China signed the Framework Agreement on Economic Partnership for Shared Development.

The agreement covers trade, investment, new energy and multilateral cooperation and is intended to provide a stronger institutional foundation for future economic cooperation.

South Africa and China are working towards arrangements that can provide qualifying South African exports with more stable and predictable access to the Chinese market, while simultaneously encouraging further Chinese investment in South Africa.

The South African government has identified sectors including mining, agriculture, renewable energy and technology as areas where significant opportunities exist.

A partnership looking beyond trade

The importance of the China-South Africa relationship extends beyond the value of goods crossing their respective borders.

The 2024 joint statement established cooperation across areas including science and technology, sustainable housing, culture, agriculture, health, education, renewable energy and digital development.

It also reaffirmed the importance of cooperation through the Forum on China-Africa Cooperation and support for the African Continental Free Trade Area.

For South Africa, this creates the possibility of positioning itself not only as an exporter to China, but also as a manufacturing, investment and distribution platform for the wider African market.

For Chinese companies, South Africa offers access to a sophisticated industrial economy, established financial and logistics infrastructure and the broader opportunities presented by Africa’s increasingly integrated market.

What comes next?

The next phase will be about implementation.

The zero-tariff arrangement gives South African producers a powerful incentive to identify products that can compete successfully in China. The challenge will be ensuring that producers, particularly smaller businesses, understand the rules of origin, certification requirements, Chinese standards and market-access procedures.

The automotive sector will need to translate investment announcements into deeper local supply chains and skills development.

The energy partnership will need to convert investment interest into bankable projects and infrastructure.

Agriculture will need to build production capacity capable of supplying China’s enormous consumer market consistently and competitively.

And negotiations towards longer-term economic arrangements will remain important for creating greater certainty for businesses.

The developments since 2024 suggest that the China-South Africa relationship is moving from agreements towards implementation.

The figures are significant, but perhaps more important is the direction: rising bilateral trade, billions of dollars in Chinese investment, new manufacturing opportunities, expanded agricultural market access, zero-tariff opportunities and growing cooperation in energy and technology.

For South African businesses, farmers, manufacturers and exporters, the message is increasingly practical: the Chinese market is becoming more accessible, while Chinese investment is creating opportunities within South Africa.

The 2024 State Visit therefore should not be viewed simply as an event from the past. Its significance is increasingly visible in the economic opportunities unfolding in 2026—and the coming years could determine how effectively South Africa converts those opportunities into exports, factories, skills, jobs and broader industrial development.

Key sources: The Presidency of South Africa, South African Government, SARS, SAnews and China’s Ministry of Commerce.