For decades, South Africa has been China’s top source for metals such as gold, diamonds and platinum but now Beijing is opening up to more agricultural exports as it moves to reduce its dependency on countries such as the United States and Australia.
The newly appointed Chinese ambassador, Wu Peng, told local media that Beijing was implementing measures to fast-track food exports
“This year, we are working hard with the South African side towards signing export protocols for yet more South African goods, including wool, dairy products, pet food, and wild aquatic products,” Wu told IOL News.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
“The Chinese government is committed to advancing high-level opening-up. We are ready to share our mega-sized market with all countries, including South Africa.”
South Africa has been China’s largest trading partner in Africa for 14 consecutive years, and in the first half of this year, the value of that trade hit US$27.5 billion, according to China’s General Administration of Customs.
In the same period, imports from South Africa rose by 10.7 per cent to US$17.29 billion year on year, but Chinese exports to the African nation dropped by 18.6 per cent in that period to US$10.2 billion.
South Africa’s exports to China are predominantly minerals or metals, but more recently it has started buying products such as soybeans, wine, rooibos tea, aloe gel and citrus fruits.
And later this year, South Africa is expected to start exporting avocados after the two countries signed a deal at the Brics Summit in Johannesburg last year.
Derek Donkin, chief executive of the South African Subtropical Growers’ Association, said Chinese inspectors were coming to South Africa this month for a final inspection before exports could start.
“We hope to be able to send the first shipment soon after that if the inspection goes well,” Donkin said.
South Africa will become the third African country after Kenya and Tanzania to export avocados to China.
Wu said some South African agricultural products, including wine, rooibos tea and aloe gel, were already very popular in China.
China plans to help African countries boost productivity to increase rural incomes. Photo: Bloomberg alt=China plans to help African countries boost productivity to increase rural incomes. Photo: Bloomberg>
Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa, said there had been increased exports of wool to China although some export markets temporarily closed due to concerns related to foot and mouth disease in 2022 and 2023.
“The impact of those temporary closures is visible on export volumes of wool. In 2022, South Africa’s wool exports fell by 19 per cent year-on-year to 42 239 tonnes. The major decline in volume was in the Chinese market,” Sihlobo said, adding that exports recovered 18 per cent year on year in 2023.
Lauren Johnston, an associate professor at the University of Sydney’s China Studies Centre, said the initial focus was expected to be on increasing exports of products for which there is demand, such as chillies, nuts, avocados and citrus fruits.
It also wants to help African countries improve productivity to help boost rural incomes, employment and food security.
Johnston also said that Beijing wanted to increase trade with African countries to reduce its dependence on countries such as the US and Australia – particularly for products such as soybeans.
China has the world’s largest number of pigs and soybeans are a vital source of food for the animals. Johnston noted that the price of pork was “typically the key political or social protest risk metric in China”.
She also said China would benefit by importing products such as wool and pet food from South Africa because it would free up arable land for use at home.
“Anything that reduces pressure on China’s arable land and agricultural productivity without creating or deepening trade dependencies is good for China,” Johnston said.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.
Source Agencies
