South Africa Aims to Balance Trade Deficit with China Ahead of Major Summit

South African President Cyril Ramaphosa has expressed his intention to address the trade imbalance with China. This comes as Chinese President Xi Jinping prepares for a significant summit where he will urge African nations to increase purchases of Chinese goods. The summit will also discuss China's role as a major lender to Africa.

South African President Cyril Ramaphosa has indicated a desire to narrow the trade deficit with China, as he met with President Xi Jinping ahead of a key summit involving 50 African nations. This comes at a time when China's imports from South Africa vastly overshadow exports.

The discussions point to a broader challenge for Xi, who aims to persuade African leaders to buy more Chinese products, especially given that China failed to meet its previous commitment to purchase $300 billion in African goods. Amid impending Western restrictions on Chinese exports, this summit, which begins on Wednesday, is essential for China to secure new markets for its products.

Beyond trade, this ninth Forum on China-Africa Cooperation will also focus on China's position as a leading creditor to Africa, with many nations facing mounting debt. In 2023, for the first time in seven years, China's lending to Africa saw an increase, indicating a strategic shift in its financial engagements with the continent.

(With inputs from agencies.)