South Africa and China Finalize Economic Partnership Framework in Beijing

South Africa and China formalized a significant economic accord, the China-Africa Economic Partnership Agreement (CAEPA) Framework Agreement, in Beijing on February 6, 2026. South Africa’s Minister of Trade, Industry and Competition, Parks Tau, executed the document alongside China's Minister of Commerce, Wang Wentao, during a session of the Joint Economic Trade Commission (JETC) meeting. This strategic agreement is designed to enhance bilateral economic engagement by granting South African exports preferential, duty-free access to the Chinese market.

The framework addresses cooperation across trade, investment, new energy initiatives, and multilateral coordination, critically incorporating safeguards intended to protect South Africa's domestic industrial capacity. This development follows Pretoria's active pursuit of export destination diversification, a strategy intensified by unilateral tariffs imposed by the United States in 2025. China remains South Africa's largest trading partner, with bilateral trade reaching $34.18 billion in 2023.

The agreement is structured to deliver immediate commercial benefits, with follow-on negotiations scheduled to produce an 'Early Harvest Agreement' by the end of March 2026 to secure short-term trade advantages. Beyond tariff adjustments, the accord signals a concerted effort to rebalance trade flows, which have historically involved South Africa exporting raw materials, such as mineral products, in exchange for manufactured goods from China.

Senior Agricultural Economist Paul Makube of First National Bank (FNB) noted the development presents a substantial opportunity for local farmers to increase exports of high-value produce beyond traditional Western markets. Makube indicated that improved market access could stimulate demand for agricultural commodities, pointing out that in 2023, South Africa supplied approximately 0.4% of China's total agricultural imports, valued at US$979 million out of a US$218 billion total.

The comprehensive CAEPA framework also prioritizes increased Chinese investment within South Africa, focusing on sectors such as renewable energy and technology, areas Minister Tau identified as emerging opportunities. To further cement these relations, China committed to dispatching an inward buying mission, and Pretoria accepted an invitation for South Africa to exhibit at the 9th China International Import Expo in Shanghai in November 2026. The agreement aligns with the broader BRICS objective of strengthening South-South partnerships to promote sustainable development and industrial transformation.

The inclusion of industrial capacity safeguards reflects a deliberate policy to balance market access with the protection of domestic manufacturing capabilities, a key consideration following previous trade imbalances. The overall strategic pivot toward Asia is framed within a national imperative to build economic resilience following the imposition of steep duties by the United States.