South Africa and China to Promote Investment Following Increase in US Import Tariffs

In response to the United States’ recent imposition of a 30% tariff on South African imports, South Africa and China are actively working to enhance bilateral trade and investment. This strategic initiative aims to counter the economic repercussions of U.S. tariffs and strengthen their economic partnership.

During the ninth annual South Africa-China trade promotion conference on September 23, 2025, officials from both nations committed to improving investment cooperation, particularly in the mining, energy, and infrastructure sectors. The U.S. tariffs mark a significant shift from the previously established duty-free status under the African Growth and Opportunity Act (AGOA).

Chinese investments in South Africa are already substantial. The Baiyin Nonferrous Group has pledged 4 billion rand (about $230 million) towards Gold One’s gold mining operations in Gauteng. Additionally, the China-Africa Development Fund plans to invest in South Africa’s energy transition projects, while companies like China State Construction are looking to boost local procurement.

South African Deputy Trade Minister Zuko Godlimpi highlighted the nation’s intent to attract more Chinese investment, especially in manufacturing and renewable energy. In 2024, Chinese investments in South Africa reached $13.21 billion, juxtaposed with $8.05 billion from South Africa to China. The trade imbalance—characterized by South Africa exporting primarily minerals while importing manufactured goods from China—is an area both countries aim to alleviate.

Chinese Ambassador Wu Peng urged businesses to increase localization efforts and assured further zero-tariff access for African nations, with over 30 countries already signing related agreements. These developments highlight a focused effort by South Africa and China to navigate U.S. trade challenges and foster a more balanced economic relationship.