South Africa and China have launched a renewed push for deeper economic ties, with Beijing pledging fresh investments in mining, energy, and infrastructure. The move comes as Pretoria faces mounting pressure from new US tariffs that threaten its preferential access under the African Growth and Opportunity Act (AGOA).

The ninth annual South Africa-China trade promotion conference, held on Tuesday, underscored both countries’ commitment to strengthening economic cooperation. At the event, Zhang Chaoyang, chair of the South Africa-China Economic and Trade Association, announced a major development in Gauteng’s gold sector.

Gold One, owned by China’s Baiyin Nonferrous Group, will inject 4 billion rand ($230 million) into its operations, signaling confidence in South Africa’s resource-driven economy.

The China-Africa Development Fund also confirmed plans to participate in South Africa’s independent energy transition projects, designed to expand electricity capacity with private-sector backing. Meanwhile, Chinese state-linked firms, such as China State Construction, pledged to increase local procurement, boosting South Africa’s manufacturing and services sectors.

Deputy Trade Minister Zuko Godlimpi described the partnership as an opportunity to create “a mutually beneficial future,” emphasizing Pretoria’s focus on investments in infrastructure, renewable energy, and industrial capacity.

US tariffs reshape Pretoria’s global strategy

South Africa’s pivot toward Beijing comes at a time of rising trade frictions with Washington. For years, South African exports enjoyed duty-free access to the US under AGOA. However, the Trump administration has imposed tariffs of up to 30%, including penalties on steel, aluminum, and automotive goods.

These measures, according to economists, could cost Pretoria up to $2.3 billion in exports and tens of thousands of jobs.

While discussions are underway to secure a better deal, the uncertainty around AGOA’s renewal has forced South Africa to strengthen ties with its largest trading partner, China.

Chinese investments target mining, energy, and infrastructure

China has been South Africa’s leading trading partner for 16 consecutive years, with bilateral trade reaching $52.4 billion in 2024. By contrast, South Africa’s trade with the US amounted to $15.1 billion in the same period, more than three times smaller.

Chinese companies, such as Hisense, BAIC, Sinosteel, FAW, and Seraphim Solar, already maintain a strong presence in South Africa, employing thousands and contributing to local production. Official figures show that Chinese foreign direct investment totaled $13.21 billion in 2024, while South African investments in China reached $8.05 billion.

Chinese Ambassador Wu Peng urged companies to accelerate localization efforts, particularly in the automotive sector. "If you really want to look after your long-term interests, you must invest in South Africa," he said, calling on Chinese automakers to establish more factories.

Earlier this year, Beijing announced that all 53 African countries with diplomatic relations would benefit from expanded zero-tariff access, with more than 30 nations already signing framework deals.