China Signs Landmark Trading Duty-Free Deal With South Africa

• The Department of Trade, Industry, and Competition celebrated the new trade partnership between China and South Africa
• The Minister of Trade, Industry, and Competition and his Chinese counterpart, Wang Wentao, signed a deal that will boost the South African economy
• While some South Africans welcomed the deal, others questioned it, as the South African government hailed it as groundbreaking

Tebogo Mokwena, a Briefly News journalist with 10 years of experience, offered valuable insights into South Africa’s business environment during his three years at Vutivi Business News.

BEIJING, CHINA — The Minister of Trade, Industry, and Competition, Parks Tau, signed a deal with the People's Republic of China on 6 February 2026, which will see China provide duty-free access to South African exported products. South Africans had mixed views about the deal.

According to a statement that the Department of Trade, Industry and Competition (DTIC) released on 6 February, the agreement is entitled the Framework Agreement on Economic Partnership for Shared Prosperity, also known as the China-Africa Economic Partnership Agreement (CAEPA). The CAEPA covers trade cooperation, new energy cooperation, multilateral cooperation, and investment cooperation, and is also expected to drive Chinese investment into the country.

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CAEPA deal with China to boost economy

The DTIC said that an Early Harvest Agreement will be reached by the end of March 2026, and this will allow South African businesses to export duty-free products to China. The DTIC said that China and South Africa intend to expand bilateral trade, and this includes promoting the export of agricultural products and high-value manufactured goods to China.

Tau lauded the deal and said that new opportunities for South African businesses seeking to enter the Chinese market in mining, technology, renewable energy, and agriculture will emerge because of the CAEPA. The department added that China, which invites South African businesses to participate in the 9th China International Import Expo, will send an inward buying mission to visit the country.

Read the full statement on X here:

China's trade relations with South Africa

China, which is part of the trade bloc BRICS with South Africa, has entered into beneficial trade deals with South Africa. In 2024, China and South Africa entered into a new bilateral trade agreement for the export of chicken feet valued at R300 million. Tourism and trade company Wesgro and four banks were involved in the deal.

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The Chinese government will reportedly contribute a large percentage of the R500 million required to refurbish one of South Africa's key military bases in Bloemfontein. It's alleged that an agreement for military aid and assistance worth R260 million was signed in Beijing in 2024.

South Africans weigh in on deal

Netizens had questions about the deal, and some celebrated it.

Morne Viljoen asked:

"The real question here is, will the trade agreement eliminate the trade deficit with China? If it does, credit where it's due. If not, we can assume the colonisation of South Africa by China will continue unopposed."

Ms Glo asked:

"This is good, but what does it say about local manufacturers? Who will create jobs locally?"

Mr Hove said:

"Let's hope SA is not gonna go ahead to put tariffs on Chinese car brands. We're still gonna want to buy Omoda."

Siya asked:

"Does this mean the Chinese vehicles are going to be even more affordable?"

Real African said:

"It's a good move, but we must read it well as the Chinese don't give out anything without them gaining something."

Cyril Ramaphosa welcomes AGOA extension

In a related article, Briefly News reported that President Cyril Ramaphosa welcomed the inclusion of South Africa in the African Growth and Opportunity Act (AGOA) extension. He spoke after United States President Donald Trump signed the extension for one more year.

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Ramaphosa said that the South African government is still in talks with the U.S. Trade Department. He said he hoped this could lead to the finalisation of a deal between the two countries.

Source: Briefly News