China opens tariff-free trade door to SA

Zero-duty access boosts export hopes but structural hurdles remain

March 23, 2026.Minister of Trade,Industry and Competition Parks Tau briefing the media on government's readiness for the Sixth South Africa Investment Conference (SAIC 2026) and outline key priorities of the Conference and provide an update on preparations as the country convenes Investors,Business Leaders and Development Partners to engage on Investment Opportunities across Sectors of the Economy held at Ronnie Mamoepa in Pretoria. Picture: Freddy Mavunda © Business Day (Freddy Mavunda)

China implemented a zero-tariff policy for 20 more African countries, including SA, from Friday, opening improved export opportunities and offering some respite from swingeing US tariffs.

Trade, industry & competition minister Parks Tau said the decision to allow tariff-free exports offers a meaningful opportunity to South African exporters to expand into one of the world’s largest and most dynamic consumer markets.

China initially granted zero-tariff access to least-developed countries in 2024 and has now expanded that to include all countries with which it has diplomatic ties. That excludes Eswatini, which maintains ties with Taiwan.

China is SA’s largest trading partner. SA mainly exports raw materials and commodities to China, and the new policy offers opportunities to export other goods − such as fruit, vegetables, wine and other agricultural products − to one of the world’s largest consumer markets.

Advocacy groups and economists have, however, warned that most African countries lack the industrial and energy infrastructure to capitalise on such preferences, stressing that without targeted support for African manufacturing, technology transfer and local content, tariff preferences risk entrenching the continent’s “supplier status rather than overturning it”.

From May 1 2026 to April 30 2028, qualifying South African goods exported to China will benefit from zero customs duties under the scheme, subject to compliance with the applicable tariff schedule and rules of origin, the department of trade, industry & competition (dtic) said in a statement.

Efficient Group chief economist Dawie Roodt said what this means is that African countries wanting to export to China can do so without levies.

“It’s a good thing, and African countries will benefit from this. But African countries don’t manufacture much, and the reality is that China is so dominant when it comes to manufacturing.”

Roodt said eligible African countries would not bring much competition to China.

“What this scheme will do is to give opportunity to Chinese companies to set up factories in Africa and export back to China, and that’s happening already, so that means many Chinese companies will also benefit,” he said.

Econometrix chief economist Azar Jammine said the scheme was an attempt by China to “try and take advantage of the situation Trump has brought about”. He said the real problem was that “we are not managing to manufacture a lot of goods at a competitive level”, the country lacked sought-after skills, and there was a general decline in manufacturing.

The SA-based energy advocacy group, African Energy Chamber, has said that on paper, zero-tariff access was a welcome opportunity but pointed out that most African countries lacked the industrial and energy infrastructure to capitalise on such preferences. Many exports continued to be raw or semi-processed materials with limited value retention on the continent.

“Without targeted support for African manufacturing, technology transfer and local content, tariff preferences risk entrenching the continent’s supplier status rather than overturning it,” the group said.

The dtic said it was working with the SA Revenue Service on the customs procedures and the necessary changes to legislation that need to be implemented.

“This preferential market access framework offers a strategic opportunity for South Africa to enhance export competitiveness, diversify into higher-value-added products, and expand market access for agricultural, industrial and beneficiated goods. It also supports broader national objectives, including industrial development, employment creation and export-led growth,” the dtic said.

The scheme comes after Washington’s relations with Pretoria deteriorated last year over policy differences, resulting in the US slapping a 30% reciprocal tariff on South African exports, listing it among several countries that President Donald Trump claimed had given his country a raw deal in trade for years.

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