Deputy President Paul Mashatile has encouraged Chinese-funded enterprises in South Africa to increase their investments in crucial sectors of the economy, particularly the automotive industry and infrastructure development.
Speaking at the launch of the corporate social responsibility report of Chinese-funded enterprises in South Africa, on Wednesday, he said: “Your participation and investment in our country is critical for creating jobs and promoting economic growth and development.”
Mashatile acknowledged the South Africa-China Economic Trade and Association’s (SACETA) “substantial contributions” to the country’s economic and social development.
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SACETA was established in April 2011 and serves as a platform for fostering economic and trade collaboration between the two countries.
Mashatile told attendees that the 200 Chinese-funded enterprises locally serve as role models for businesses, demonstrating that profitability should be balanced with social good.
He said it is essential for nations to cultivate strong partnerships to thrive and navigate the challenges of the modern world.
“We should leverage our expertise to navigate towards a more sustainable path, guided by the principles of joint pursuit and a shared future. Our countries have complementary strengths and resources, making us ideal economic partners.”
Addressing the trade deficit
However, the Deputy President acknowledged that the trade structure has been imbalanced, noting that last year’s value of China’s imports far exceeded its exports.
According to Mashatile, total bilateral trade increased from R614 billion in 2022 to R692 billion in 2023, while China’s R146 billion deficits remained the highest among any of the country’s trading partners.
He announced that government intends to work with China in addressing the trade deficit and structure of bilateral trade by broadening its export basket, especially to export more value-added products.
“South Africa mostly exports minerals and agricultural products to China while importing mostly manufactured goods from China. At a time when African economies are becoming more integrated, China’s technological prowess may help Africa industrialize and export more than just raw materials.”
Moreover, Mashatile stressed that China could lend a helping hand by streamlining import procedures and lowering regulatory hurdles, which could make China a larger market for local products, benefiting both South African producers and Chinese customers.
