Minister Parks Tau signs Framework Agreement on Economic Partnership for Shared Prosperity (CAEPA).

Minister Parks Tau and his counterpart from the People's Republic of China, Minister Wang Wentao, have signed the Framework Agreement on Economic Partnership for Shared Prosperity.

This landmark agreement will be followed by the negotiation and conclusion of an Early Harvest Agreement by the end of March 2026, which will see China provide duty free access to South African exported products and enhance Chinese investment into South Africa. The Comprehensive Agreement on Economic Partnership for Shared Prosperity covers a number of areas including:

• Trade cooperation
• Investment cooperation
• New energy cooperation
• Multilateral cooperation

As this agreement is a framework, South Africa looks forward to working with China in a friendly, pragmatic and flexible manner, while ensuring consistency with World Trade Organisation principles and the development objectives of both sides, with a view to providing a stable and predictable environment for economic cooperation and win win outcomes. Both sides intend to further expand bilateral trade, including by promoting the export of South African agricultural products and high value manufactured goods to China. South Africa already exports a number of agricultural products to China including citrus and rooibos tea, amongst others.

"As China South Africa relations continue to deepen, new opportunities emerge for South African businesses seeking to enter the Chinese market, particularly in sectors such as mining, agriculture, renewable energy and technology," said Minister Tau.

China will send an inward buying mission to visit South Africa and has invited South Africa to participate in the Country Exhibition and Business Exhibition of the 9th China International Import Expo, to be held in Shanghai, China in November 2026. China also invited South Africa to a steel investment event to promote investment opportunities in South Africa's steel industry.

South Africa is a major destination for Chinese investment in Africa and the leading African country in terms of actual investments in China. "We have seen a significant and steady increase in Chinese investments in South Africa, while South African companies are showing a growing interest in investing in the Chinese market. Chinese automotive companies are investing into the South African economy and creating much needed employment opportunities. We look forward to attracting even more Chinese investment into South Africa, and also introducing many South African products into the Chinese market," Minister Tau said.

The agreement is intended to enhance the bilateral trade relationship, with a view to identifying complementarities in the two economies and not to encroach on sensitivities in either country. Negotiations will be undertaken to ensure that the necessary safeguards are built into the agreement to protect South Africa's industrial capacity.

"We hope that the signing of the Framework Agreement and the outcomes of our Joint Economic Trade Commission meeting will signal the urgency we attach to growing our bilateral trade and investment relations. Together with the Framework Agreement, these outcomes should provide a strong foundation for a mutually beneficial partnership and for our respective private sectors to do more business together," Minister Tau remarked.

Enquiries:
Ministerial Spokesperson
Kaamil Alli
Cell: 082 520 6813
E-mail: [email protected]

Director: Media Relations
Bongani Lukhele
Cell: 079 5083 457
E-mail: [email protected]

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