South African signs 26 new trade agreements with China

SA and China have inked 26 agreements valued at R94bn that will go some way to address their trade imbalance.

The Industrial Development Corporation (IDC) and Beijing Auto Works signed a R12bn agreement, the biggest of the lot, to build a car manufacturing plant in SA, Trade and Industry Minister Rob Davies said on Wednesday during Chinese President Xi Jinping’s second state visit to SA.
The China Development Bank is providing a loan facility of $500m to Eskom to support the cash-strapped utility’s infrastructure plan.
China is SA’s largest trading partner, but concern has been raised about the balance of trade.
In April, SA recorded a R73bn trade deficit with China. At the time, International Relations and Cooperation Minister Maite Nkoana-Mashabane said exports to China amounted to R94bn last year. Imports from China in the same period stood at R167bn, with trade between the two countries totalling R262bn. China exports manufactured goods to SA, while importing raw materials for beneficiation.
Mr Davies said the new agreements would begin to improve the situation.
IDC CE Mvuleni Qhena said the entity would identify a site for the car manufacturing plant, which was expected to create 2,500 direct and 7,500 indirect jobs. Cars built at the plant would be exported to the rest of Africa. Currently, other African countries, including Angola, imported cars from China, he said.