By: ThinkBusiness Africa
In a landmark move poised to significantly reconfigure South Africa’s international trade strategy, Trade, Industry, and Competition Minister Parks Tau announced on Friday the signing of a framework economic partnership agreement with China. The accord, inked during Tau’s official visit to Beijing, paves the way for South African exports to gain duty-free access to the vast Chinese market.
The agreement, formally known as the China-Africa Economic Partnership Agreement (CAEPA), represents a pivotal step in strengthening economic ties between the two nations and is seen by analysts as a strategic “pivot to the East” for South Africa.
Minister Tau’s office confirmed the signing on Friday, following a productive three-day visit to the Chinese capital. “This agreement marks a new chapter in our economic relationship with China, opening unparalleled opportunities for South African businesses and exporters,” read a statement from the Department of Trade, Industry and Competition. “It is a deliberate effort to diversify our export markets and foster greater economic resilience.”
The timing of this agreement is particularly pertinent. South Africa has been actively seeking to bolster its trade relationships following the imposition of 30% tariffs by the United States on a range of South African goods in August 2025. This development, which strained already complex U.S.-South Africa relations, has accelerated Pretoria’s efforts to reduce its reliance on traditional Western markets.
For over 15 years, China has been South Africa’s largest trading partner. This new agreement, however, elevates their relationship from a significant partnership to a formalized “strategic cooperative partnership,” solidifying economic collaboration beyond mere transactional trade.
Beyond duty-free access, the framework is also expected to stimulate substantial Chinese investment into South Africa’s critical infrastructure projects and manufacturing sectors, aligning with South Africa’s goals within the expanded BRICS+ economic bloc.
Local industries, particularly those in the agricultural sector, are set to be major beneficiaries. Exporters of products such as citrus, wine, and beef could see significantly reduced costs and increased competitiveness in the lucrative Chinese market. This could provide a much-needed boost to South African farmers and producers facing global economic headwinds.
