South Africa and China Step Up Investment Push Following US Tariff Hike

South Africa and China have pledged to deepen investment ties in the wake of new US tariffs that threaten to disrupt global trade flows. The move reflects both countries’ shared interest in strengthening economic cooperation while mitigating the impact of protectionist policies.

South African Trade Minister Ebrahim Patel said discussions with Chinese officials this week focused on expanding industrial partnerships and unlocking capital for infrastructure and manufacturing projects. “We see China as a strategic partner in diversifying our economy and building resilience against external shocks,” Patel stated during a press briefing in Pretoria.

As highlighted by Reuters, the talks follow Washington’s decision to impose new tariffs on a range of imports, a policy shift that has rattled markets and placed additional strain on developing economies reliant on export trade. Chinese delegates reaffirmed their commitment to expand trade and investment channels with Africa’s most industrialized nation, particularly in energy, transport, and mining.

Figures from South Africa’s Department of Trade, Industry and Competition show bilateral trade with China exceeded $55 billion in 2024, making Beijing the country’s largest trading partner. Analysts told Bloomberg that the renewed investment drive could help South Africa attract critical funding at a time of subdued domestic growth and rising financing costs.

With the US tightening access to its markets, South Africa and China appear determined to position their partnership as a buffer against geopolitical uncertainty, signaling a pivot toward stronger South-South cooperation.

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