6 August 2024 – China and South Africa should establish a free-trade zone “as soon as possible”, a Renmin University academic has suggested as Beijing has been the top target of the country’s anti-dumping actions.
In an article published on Wednesday, Song Lifang, vice-president of the university’s Belt and Road Economic Research Institute, suggested that Beijing set up an economic integration organisation in the region to counter anti-dumping measures.
Despite being South Africa’s biggest trade partner, Beijing faced 44 anti-dumping investigations and 25 anti-dumping measures from its fellow Brics member between 1995 and 2021, according to Song, referring to data from the World Trade Organization and China’s Ministry of Commerce.
The action accounts for 17.53 of South Africa’s anti-dumping investigations and 17.36 per cent of its anti-dumping measures in the 26-year period.
In comparison, South Africa launched 23 anti-dumping investigations against India, 16 against South Korea and 13 against Taipei in the same period.
Anti-dumping duties are protectionist tariffs that a government imposes on imports.
Chinese steel products have been the main targets of South Africa’s actions. Steel products are the subject of more than one-third of South Africa’s anti-dumping investigations against China, and a quarter of the country’s steel-related investigations target Beijing.
Steel is a pillar industry in South Africa, and China is the primary source of South Africa’s steel imports.
China should “actively respond” to South Africa’s anti-dumping policies and “expand direct investment in South Africa with a focus on the steel industry”, said Song, who teaches at Renmin University’s school of economics.
“China should … establish a regional economic integration organisation represented by a free-trade zone with South Africa as soon as possible, attach importance to the study of the Southern African Customs Union and its anti-dumping [policies] against China,” Song said.
China and South Africa launched free-trade negotiations as early as two decades ago, but a substantial arrangement has yet to be reached. At last year’s Brics summit, Chinese companies signed deals to buy US$2.2 billion worth of South African products.
Last month, South Africa imposed an import duty of 45 per cent plus value-added tax on all clothing, up from a tariff of 20 per cent previously imposed on low-value parcels. The move was seen as part of efforts to stop Chinese-backed shopping platforms like Shein and Temu from undercutting domestic retailers.
Song noted that the other members of the Southern African Customs Union, including Botswana, eSwatini, Lesotho and Namibia, have adopted measures identical to those of South Africa.
“The impact and losses caused by South Africa’s anti-dumping against China, in fact, not only involve bilateral trade between China and South Africa, but also multilateral trade between China and the five countries of the Southern African Customs Union,” she wrote.
Song said that South Africa’s economic reconstruction and recovery plan should be coordinated with China’s Belt and Road Initiative, Beijing’s strategy to build global trade and infrastructure links.
She added that the two sides should focus on deepening post-Covid economic recovery and cooperation in industrial and supply chains. Source: (South China Morning Post)
