Shipments from China to South Africa rose by 29% in the first eight months of 2026, compared with a year earlier. Local factories say the flood of cheaper goods is making it hard for them to survive.
Chinese exports to South Africa have more than doubled since the start of the decade, Polity.org.za reported. They rose by almost $10 billion in the first eight months of this year, compared with the same period six years ago.
“You don’t see the appetite from government to actually protect local industry, and yet they continue to talk about industrialisation and beneficiation,” said Busi Mavuso, head of Business Leadership South Africa.
“The real fact of the matter is that we don’t have a clear trade policy as a country,” Mavuso said in an interview. She said the country continues to put politics before economics.
According to the report, the pace picked up after US President Donald Trump returned to the White House. Chinese makers facing higher US trade barriers are looking for buyers in other countries.
Among Africa’s major economies, only Nigeria saw a bigger rise in Chinese imports. China makes up more than a third of South Africa’s manufacturing imports, according to central bank data. It takes only about 5.9% of the country’s exports.
South Africa’s manufacturing industry shrank for a third quarter in a row in the three months to June.
Moody’s Ratings ranked South Africa as the most exposed to Chinese trade competition of the eight African countries it studied. It pointed to the country’s large manufacturing sector and its heavy reliance on Chinese inputs in its exports.
The International Trade Administration Commission (Itac) said it is investigating five new applications from companies seeking relief from imports.
The applicants include makers of ceiling plasterboard, plastic used in drink bottles and cold rolled steel. Among them are the South African Fasteners Manufacturers’ Association, Saint-Gobain Construction Products South Africa, ArcelorMittal South Africa and Hosaf, a unit of KAP.
“Part of that increase can be attributed to increased imports from East Asia, including China,” Itac said in an emailed response to questions.
At Alvern Cables in Germiston, east of Johannesburg, works director Jaycen Padiachy said the company had hoped for a rebound after the pandemic. Instead, he said, the recovery has faltered.
“What we are noticing now is a lot of competition in the market; imports are affecting our business,” Padiachy said. The company, founded in 1967, makes electrical cables for homes, factories and infrastructure.
“Under recent market conditions, we’ve had to work on reduced time for a short period,” he said.
The Department of Trade said it is taking the threat seriously. Maoto Molefane, the department’s acting deputy director general, called the trade upheaval “a serious wake-up call”.
“For the longest time we’ve been dependent on a particular region, but going forward, South Africa is looking at other areas,” Molefane said.
The government wants companies to sell to more markets. It is promoting what it calls a “butterfly strategy” to build trade links with different regions.
The report said South African factories still have the ability to produce. Factory capacity use stood at about 76% in 2026, down from 83.2% in 2003.
The problem is weak demand at prices that keep local factories competitive. Many South Africans face a high cost of living and unemployment, so cheaper imports often win.
“Capability and capacity is not an issue,” said Sello Takatso, senior manager for manufacturing at Nedbank Group. “With the mounting challenges of imports that are taking place, we are competing on price point.”
Source: this article is based on reporting by Polity.org.za. Image: Polity.org.za. Written with the help of AI and published by the Tzaneen Voice Business desk. See our Editorial Standards.
Anelisa Nkuna covers business and money news for Tzaneen Voice. Anelisa reports on the rand, fuel prices, interest rates, jobs, Eskom, Transnet, farming and company results. The aim is simple: explain what the numbers mean for household budgets, small businesses and workers in South Africa.