South Africa Aims to Balance Trade as China Seeks Buyers for Overcapacity Products

South African President Cyril Ramaphosa urged China’s Xi Jinping to help narrow South Africa's trade deficit with Beijing. This comes ahead of a summit where Xi is expected to encourage African nations to import more Chinese goods, despite China not fulfilling past promises. Ramaphosa seeks sustainable investments and better infrastructure support from China.

South African President Cyril Ramaphosa has called on Chinese President Xi Jinping to help narrow South Africa's trade deficit with Beijing. Ramaphosa's appeal comes just days before Xi is set to urge a summit of 50 African countries to buy more Chinese goods. Xi faces challenges convincing African leaders to import more from China, especially after not meeting a 2021 pledge to purchase $300 billion of African goods.

Western restrictions on Chinese exports such as solar panels and electric vehicles add to the urgency for Xi to find new buyers. 'As South Africa, we would like to narrow the trade deficit and address the structure of our trade,' Ramaphosa stated during discussions at Beijing's Great Hall of the People, according to a statement from his office.

South Africa, a co-founder of the BRICS along with Brazil, Russia, India, and China, is also seeking Beijing's backing to overcome a decade of economic stagnation by enhancing infrastructure. Xi indicated China's willingness to support South Africa by resolving persistent issues such as power cuts, poor port processing, and sub-par railways, proposing a 'new era of all-round strategic partnership,' Chinese state media reported.

(With inputs from agencies.)