Africa is defining the course of its strategic alliance with China, asserting its own prerogatives in this crucially important relationship.
South Africa, a key player in Africa's economic landscape, finds itself at a crossroads in its partnership with China. As China has published comprehensive strategies towards Africa, African nations are being called upon to decide what they want from these partnerships and develop a coherent strategy.
In the last two decades, South Africa's manufacturing sector has seen significant investment from global automotive giants like BMW, Ford, Hyundai, Isuzu, Mahindra, Mercedes-Benz, Nissan, Toyota, and VW. These manufacturing locations employ thousands and produce a wide range of vehicle models for both the domestic market and for export.
Last year, China overtook the European Union (EU) as South Africa's largest trading partner. This shift has been influenced by China's economic slowdown, which has led to increased generosity towards Africa, as China seeks political allies to buy its goods.
However, this growing relationship has not been without controversy. South Africa's ideological closeness to China and support for Russia in its war against Ukraine have raised the ire of US legislators. They have campaigned for US senators to review trade relations with South Africa.
At the same time, Africa's vast control over vital commodities such as cobalt, lithium, and rare earth minerals gives the continent unprecedented leverage. China is seeking to tap into these resources, as seen in its provision of billions in loans to build infrastructure across Africa.
Recent developments, such as the US and European governments' intensive campaign to rally African governments to oppose Moscow's war in Ukraine, have further complicated the situation. However, South Africa has chosen to remain nonaligned.
President Cyril Ramaphosa, who attended the 9th Forum on China-Africa Cooperation (FOCAC) in Beijing, expressed interest in attracting China's electric vehicle manufacturer BYD to set up manufacturing plants in South Africa. This could potentially push South Africa further towards its BRIC partners.
However, there are concerns over a growing tussle between China and the United States. The US and European governments' implementation of the Carbon Border Adjustment Mechanism (CBAM) could potentially have a negative impact on South Africa's exports due to a 4% decrease in South African exports to the EU and a 0.02% reduction in South Africa's GDP, according to a country-specific study published in 2022.
Around 40 African nations were represented at the FOCAC summit, indicating a shared interest in fostering relations with China. Several ministers from the Government of National Unity were present, underscoring South Africa's commitment to this partnership.
For a person aiming for a united and coherent stance on China's trade policy in Africa, it may be beneficial to focus on identifying other global powers that hold similar positions and partner with Africa in trade with China. The United States and the European Union, both of which actively engage in trade relations and strategic economic frameworks with Africa while competing with China in various sectors, could be potential partners in this endeavour.
Read also:
- Detailed Assessment of Sony's RX100 VII Camera Model
- Sony Digital Camera RX100 VII Examination
- Ford Discontinues Popular Top-Seller in Staggering Shift, Labeled as a "Model T Event"
- 2025 Witnesses a 27% Surge in Worldwide Electric Vehicle Sales, Despite Opposition to Electrification Policies in the U.S.
