Deputy President Paul Mashatile has urged South Africa and China to deepen their economic relationship, calling for greater investment across strategic sectors to accelerate industrialisation, create employment and foster long-term sustainable growth in the country.
Addressing delegates at the South Africa-China Economic and Trade Forum at Cape Town's Mount Nelson Hotel on Friday, Mashatile emphasised that while the bilateral partnership has already delivered concrete economic gains, significant untapped potential remains that both nations must work to unlock.
Trade volumes climb as focus shifts to value-added exports
The Deputy President pointed to China's position as South Africa's largest trading partner, noting that two-way trade grew by 6.4% — rising from US$34.2 billion in 2024 to US$36.4 billion in 2025. He said the government is now prioritising a restructuring of trade flows to encourage the export of processed, value-added products rather than unrefined raw commodities.
"We firmly believe that this forum serves as a platform for aligning government strategies with private sector engagement. The issues discussed in our diplomatic and technical sessions are expected to be implemented by private sector players, leading to job creation, industrialisation, and shared prosperity."
Chinese investment in the country has reached US$8.11 billion, spanning 103 foreign direct investment projects and generating more than 5 600 jobs, Mashatile noted. South African firms have reciprocated with US$689 million in investment into China, targeting sectors including healthcare, information and communications technology, manufacturing and financial services.
The forum took place on the back of the 9th Session of the Bi-National Commission, which Mashatile co-chaired alongside Chinese Vice President Han Zheng. That session reaffirmed the enduring bonds between Pretoria and Beijing, grounded in mutual respect and a shared commitment to development. Mashatile highlighted the recently signed Framework Agreement for the China-Africa Economic Partnership Agreement (CAEPA) as a key instrument expected to reduce costs for Chinese imports of South African goods while broadening market access for local industries. He added that ongoing negotiations around an Early Harvest Agreement could result in certain South African exports qualifying for permanent zero-tariff treatment, pending consultations within the customs union.
Energy transition and green hydrogen flagged as major opportunities
Mashatile identified a range of priority sectors ripe for investment, among them mineral beneficiation, renewable and clean energy, ICT, agriculture, automotive manufacturing and the hydrogen economy. He stressed the need to move beyond simply shipping raw minerals abroad, arguing that investment in processing capacity and supporting infrastructure would lay the foundation for durable industries and sustained economic expansion.
"With strategic partnerships, we can lead the way into a new energy future, positioning our country as a global leader in clean fuels and sustainable industrialisation."
On the energy front, the Deputy President said cooperation with China could fast-track South Africa's shift towards renewable power generation, particularly in solar, wind and energy storage technologies. He also drew attention to the nation's considerable potential as a globally competitive green hydrogen producer, citing its abundant natural resources as a decisive advantage in the production of clean fuels at low cost.
Mashatile encouraged Chinese investors to capitalise on the opportunities presented by South Africa's Special Economic Zones and industrial parks, which provide dedicated infrastructure, financial incentives and access to a skilled workforce. He underscored the country's political stability, robust legal framework and world-class infrastructure as compelling reasons for investment — and positioned the nation as a strategic gateway to the wider African market of 1.4 billion people. He concluded by urging governments and the private sector on both sides to convert diplomatic agreements into real, measurable outcomes that drive inclusive economic growth across the board.
South Africa's deepening economic ties with China carry significant implications for job creation and industrial development, particularly as the country battles persistent unemployment. Expanded investment in mineral beneficiation, renewable energy and green hydrogen could diversify the economy beyond raw commodity exports, benefiting local businesses and workers. If framework agreements translate into reduced tariffs and broader market access, South African producers stand to gain competitive advantages, though outcomes will depend on how effectively diplomatic commitments convert into private sector action.
