What International Trade Agreement Exists Between South Africa And China

ESwatini is the only African country that recognizes Taiwan vis-à-vis China, and bilateral trade is through Taiwan or Hong Kong. The handover of Hong Kong to the PRC in 1997 was a factor in the transition to official recognition, as South Africa had close trade ties with the region, which was then under British administration. Pretoria feared that Beijing would downgrade its consulate after the handover and that the country would no longer be allowed to use Hong Kong as a transit route for air traffic and trade. [12] In addition, prominent South African politicians and government officials of the post-apartheid government, particularly the Communist Party of South Africa, were firmly committed to transferring recognition to the PRC. [13] It is clear that the feasibility of such an agreement, as well as the rules of origin and tariffs for related products, need to be carefully considered. Nevertheless, there is enough substance between China and SACU to warrant further studies and lend credibility to the potential of such an alliance. The aim of this study is to examine the short- and long-term effects of China`s economic growth on its imports from South Africa. The study uses the self-regressive distributed shift (ARDL) approach to estimate China`s import demand function based on quarterly data from 1992 to 2015. The use of the ARDL modelling framework distinguishes this study from previous studies that have also looked at China`s trade with South Africa. Thus, this study differs from other studies in different ways. One way this study differs from previous studies is that it deals with the direct impact of Chinese economic growth on South Africa`s exports to China. In addition, the study also assesses the long-term impact of China`s growth on its imports from South Africa.

To our knowledge, no study has looked at the long-term impact of China`s growth on its imports from South Africa. Other previous studies, such as Rangasamy & Swanepoel (2011), examine the impact of China`s economic growth on South Africa`s trade and inflation. Another study by Sandrey & Jensen (2007) assesses the welfare benefits of the China-South Africa free trade project. This current study therefore addresses some of the gaps in the literature and thus contributes to the literature on China`s economic impact in South Africa. Neither the BRICS bloc nor the Belt and Road Initiative are free trade areas, although the BRICS can provide a common forum through which other free trade agreements can be negotiated. The importance that the BRICS enjoy and its planned actions almost certainly mean that it is a platform to incentivize this – and the 2019 BRICS Brasilia declaration expressed exactly this scenario. Chinese President Xi Jinping has just returned from Brazil, where he attended the annual meeting of the BRICS countries in Brasilia. With the presidents and prime ministers of India, Russia and South Africa all in attendance, the Brasilia summit statement said the BRICS bloc had expressed common goals of « expanding trade and innovation. » Davis, D.R. (1995). Intra-industrial trade: a Heckscher-Ohlin-Ricardo approach. Journal of International Economics, 39, pp.

201-226. Department of Economics, Harvard University, Cambridge, MA 02138, USA. As a member of the BRICS, South Africa`s commitment to prioritizing the role of emerging economies in the international development agenda will be strengthened. .

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