China and South Africa inked a framework agreement for a new trade deal on Friday as Africa's leading economy increasingly weighs other options following the steep import tariffs imposed on it by the U.S. and its diplomatic fallout with the Trump administration.
South Africa's Ministry of Trade and Industry said the agreement would start negotiations over a deal that would give some South African goods, such as fruit, duty-free access to the Chinese market. The ministry said it expected the trade deal to be finalized by the end of March.
In return, the trade ministry said China will get enhanced investment opportunities in South Africa, where its car sales have seen rapid growth.
The U.S. slapped 30% duties on some South African goods under U.S. President Donald Trump's reciprocal tariffs policy, one of the higher rates applied across the world. South Africa has said it is still negotiating with the U.S. for a better deal.
The China-South Africa deal follows others looking for alternatives to U.S. partnership in the face of Trump's aggressive trade policies.
The announcement on the negotiations between China and South Africa came days after Trump issued a short-term renewal of a longstanding free-trade agreement between the U.S. and African nations. The U.S. extended the African Growth and Opportunity Act, which South Africa is a major beneficiary of, just until the end of the year and indicated it would be modified to fit the administration's America First policy.
China is already South Africa’s largest trade partner for both imports and exports, while Chinese economic influence across the African continent continues to grow and it dominates in the extraction of Africa’s critical minerals that are key components for new high-tech products.
"South Africa looks forward to working with China in a friendly, pragmatic and flexible manner," the trade ministry said.
Trade and Industry Minister Parks Tau, who traveled to China to sign the agreement, said the deal would benefit South Africa’s mining, agriculture, renewable energy and technology sectors.
U.S.-South Africa diplomatic ties have plunged to their worst point in decades after the Trump administration accused South Africa of pursuing an anti-American foreign policy and allowing the violent persecution of a white minority group at home. South Africa's government has denied allegations that white Afrikaner farmers are being killed in a widespread effort to seize their land as baseless.
Trump has also barred South Africa from taking part in meetings of the Group of 20 rich and developing nations this year in the U.S.
South Africa's biggest exports to China are gold, iron ore and platinum-group metals, while Chinese cars have quickly grown their market share in South Africa. Industry groups estimate Chinese brands have grown from around 2.8% of the South African market in 2020 to between 11% and 15% last year.
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