South African President Cyril Ramaphosa has outlined his intention to reduce his country’s trade deficit with China, raising a potential obstacle to Chinese President Xi Jinping’s upcoming efforts to encourage African nations to buy more Chinese goods. This statement comes just days before the Forum on China-Africa Cooperation Summit, where Xi is expected to push for increased trade between China and the 50 participating African nations.
Ramaphosa’s remarks highlight a key challenge for Xi in his bid to expand China’s export market in Africa. China has faced criticism for not fulfilling a 2021 pledge to purchase $300 billion worth of African goods. As Western countries tighten restrictions on Chinese exports, particularly in sectors like solar panels and electric vehicles, finding new buyers for Chinese goods has become a critical priority for the Chinese leader.
During discussions with Xi in Beijing’s Great Hall of the People, Ramaphosa emphasized South Africa’s desire for a more balanced trade relationship. “As South Africa, we would like to narrow the trade deficit and address the structure of our trade,” Ramaphosa stated, according to a statement from his presidential office. He further called for “more sustainable manufacturing and job-creating investments.”
Beyond trade, South Africa is also seeking China’s assistance in overcoming its persistent economic challenges, including a decade of stagnation. The country aims to leverage Chinese investment to bolster its infrastructure, hoping to address issues like power outages, port inefficiencies, and underdeveloped railways that have hampered growth.
In a clear signal of China’s willingness to support South Africa’s economic recovery, Xi proposed elevating bilateral ties to a “new era of all-round strategic partnership,” according to Chinese state media reports. This commitment suggests a willingness from China to address South Africa’s infrastructure needs and help the country overcome its economic hurdles.
