Chinese
officials' statements should always be taken with considerable seriousness,
especially when it comes to matters of trade.
Under
this framing, we took note when Mr Wu Peng, current Chinese Ambassador to South Africa, posted on X's social
media platform that;
"…China
and South Africa need to strengthen our bilateral trade and economic
cooperation. Chinese government welcomes more South African agricultural and
industrial products to enter the huge Chinese market."
China
has profound importance in global agriculture. In 2023, China was a leading
importer, accounting for 11% of global agricultural imports, with imports
valued at US$218 billion. The leading suppliers of farm products to China are
Brazil, the U.S., Thailand, Australia, New Zealand, Indonesia, Canada, Vietnam,
France, Russia, Argentina, Chile, Ukraine, the Netherlands, and Malaysia.
However,
China has been on a journey to diversify its agricultural exports beyond these
suppliers, which has accelerated following the U.S. initial tariffs in 2018 and
is ongoing in 2025.
South
and Latin American countries, as well as Australia, have been the primary
beneficiaries of China's diversification strategy so far.
But
South Africa must also be part of this conversation. And what Ambassador Wu
Peng raises — China’s interest in South African agricultural products — is a
starting point for a deeper trade conversation.
The
first step will have to be for South African authorities to approach China to
present a range of products that can be exported, and then build from there.
South
Africa remains a negligible player in the Chinese agricultural market,
accounting for a mere 0.4% (US$979 million) of China's agricultural imports of
US$218 billion in 2023. These exports include a variety of fruits, wine, red
meat, nuts, maize, soybeans, and wool.
However,
there is room for more ambitious agricultural export efforts.
The
South African agricultural sector—organized agriculture and
researchers—consistently points out the need to lower import
tariffs in China and remove phytosanitary constraints on various
products.
There
is now a pathway to have a productive conversation about this matter and move
with speed.
Email:
wandile@agbiz.co.za
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