Following the introduction of China’s temporary zero-tariff preference in South Africa, the country’s bilateral trade with the Asian country reached nearly $15-billion from May to August, representing a nearly 24% increase year-on-year.

During a media briefing on October 22, Chinese Ambassador Wu Peng explained that bilateral trade had grown significantly since the implementation of this programme.

He noted that South Africa’s exports to China amounted to $5.3-billion, up nearly 25% year-on-year, during the period, significantly outpacing South Africa’s overall export growth of 17% over the same period.

Additionally, he noted that South Africa’s imports from China increased by 23% year-on-year during the same period.

He said South Africa’s agriculture exports to China surged, amounting to nearly $500- million between May and August, up by over 35% year-on-year.

“This is very remarkable,” said Peng.

“The zero-tariff policy means much more than helping South African products reach the Chinese market; it is also making companies more aware of the opportunity to invest in South Africa.

“Zero tariffs [grant] companies operating in South Africa a stronger competitive advantage when exporting to China. This, in turn, can attract investors from around the world to invest and establish business in South Africa,” he added.

China remains South Africa’s largest trading partner globally and an important source of investment.

Total bilateral trade between the two countries reached R642-billion in 2025, up from R483-billion in 2021. South African exports to China increased from R198-billion to R222-billion over the same period, while imports from China rose from R284-billion to R420-billion.

Chinese foreign direct investment stock in South Africa stood at R117-billion in 2024, with more than 200 Chinese companies having invested in the country. More than 25 South African companies have also invested in China.

“I firmly believe that under the joint leadership of our two heads of State, the all-around strategic cooperative partnership in the new era between China and South Africa will continue to advance and our practical cooperation will continue to yield fruitful results,” said Peng.

Speaking during the briefing, Trade, Industry and Competition Minister Parks Tau urged South African businesses to take advantage of duty-free access to the Chinese market, while government continued negotiations aimed at providing long-term certainty for exporters and protecting local industries.

A media statement on the South African Government News Agency’s website explained that China introduced the unilateral preference scheme, which provides duty-free market access for 100% of products, with the exception of 47 tariff lines subject to tariff-rate quotas, for the period from May 1 to April 30, 2028.

In the statement, Tau said South African products that met the applicable rules of origin could enter the Chinese market without customs duty.

Between June 1 and August 31, the South African Revenue Service issued 25 975 certificates of origin, while customs declarations increased by 199% year-on-year.

The Minister said South Africa had also developed a Top 100 value-added product portfolio for the Chinese market, covering sectors including agroprocessing, beverages, chemicals and pharmaceuticals, cosmetics, machinery, medical equipment, fabricated metals, plastics and rubber, automotive products and other industrial capabilities.

The statement says the portfolio is intended to help direct export-promotion activities towards products with identified commercial opportunities.

Tau said the scale of the relationship made predictable trade rules and balanced trade essential.

“A relationship of this importance must rest on predictable rules and balanced trade. The zero-tariff treatment runs for two years, and we are not waiting for it to expire,” he said.

In February, Tau and Chinese Minister Wang Wentao signed a framework agreement on economic partnership in Beijing. South Africa and China are now negotiating an Early Harvest Agreement through the Southern African Customs Union, with officials in Beijing working towards concluding the negotiations.

The statement explains that the proposed arrangement is intended to provide exporters with greater certainty beyond 2028, while including safeguards to protect South African industry and jobs.

“South Africa trades with all its partners. Diversifying our markets is how we protect South African jobs in an uncertain world. Predictable market access gives investors the confidence to build production in South Africa.

“That is what we want, not only more trade, but more factories, more processing and more jobs here at home,” Tau said.

He also highlighted progress on industrial development, including investment in special economic zones, automotive manufacturing, electric vehicles (EVs) and battery production.

In the automotive sector, the statement notes that Chinese vehicle manufacturers are contributing to local manufacturing through partnerships and investment in South Africa’s production capacity.

BAIC operates through a joint venture with the Industrial Development Corporation (IDC) to manufacture and assemble vehicles locally. Chery has also acquired Nissan South Africa’s manufacturing facility in Rosslyn, Pretoria.

According to the Minister, Chery retained 692 former Nissan employees and plans to scale up to nearly 3 000 direct and indirect jobs.

In the EV and battery value chain, the IDC is supporting a market feasibility study on local battery cell manufacturing, led by the Localisation Support Fund, with Afrivolt as the applicant and Gotion High Tech as the technical contributor.

The statement notes that the IDC is also pursuing strategic partnerships in battery mineral processing, battery component manufacturing and local battery energy storage system production, alongside technical support for utility-scale stationary storage.