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With the trade war between the world's two biggest economies, the USA and China continuing to drag an and weighing heavily on investor sentiment and financial markets, we take a look at South Africa's imports and exports from both the United States and China from January 2018 to October 2018.
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What's SA's trade with trade war countries USA and China like?
So what exactly are we importing from the United States and China and exporting to the United States and China? And what is the value of the goods we are importing and exporting from and to these countries respectively? The bar chart below takes a look at South Africa's exports to the United States and China from the start of 2018 up to October 2018. It shows the 23 major product categories as defined by South African Revenue Service (SARS), South Africa's official customs authority.
The bulk of South Africa's exports to China is Mineral Products, with Mineral products to the value of R64.7 billion has been exported to China from January 2018 to October 2018, accounting for 69% of South Africa's exports to the world's second biggest economy. The main export from South Africa to the United States is that of Precious Metals, with a total value of R20.2 billion in precious metals being exported to the United States from January 2018 to October 2018, accounting for 29% of South Africa's exports to the United States during this period. A summary of South Africa's exports to United States and China is provided below:
Exports to the United States:
Exports to China:
The total value of exports by South Africa to China is 36.6% more than the total value of exports by South Africa to the United States during the period in question, clearly showing the importance of China as a destination for South African exports.
- Live animals: R 354 567 429
- Vegetables: R 2 397 708 349
- Animal or vegetable fats: R 7 593 573
- Prepared foodstuffs: R 1 325 510 342
- Mineral Products: R 6 761 736 631
- Chemicals: R 6 606 015 566
- Plastics & Rubber: R 1 219 552 068
- Raw hides & leather: R 142 668 877
- Wood Products: R 108 217 409
- Wood pulp & paper: R 296 057 942
- Textiles: R 249 435 361
- Footwear: R 26 436 884
- Stone & Glass: R 284 304 862
- Precious Metal: R 20 205 202 575
- Products Iron & Steel: R 15 376 842 189
- Machinery: R 5 899 602 038
- Vehicles aircraft & vessels: R 6 226 330 266
- Photographic & medical equipment: R 348 521 012
- Toys & Sport apparel: R 169 107 267
- Works of art: R 299 267 295
- Other unclassified goods: R 50 327 274
- Equipment Components: R 440 303
- Total Exports to United States: R 68 335 445 512
Exports to China:
- Live animals: R 597 379 728
- Vegetables: R 3 079 309 652
- Animal or vegetable fats: R 2 491 741
- Prepared foodstuffs: R 1 306 435 805
- Mineral Products: R 64 708 900 016
- Chemicals: R 1 013 077 791
- Plastics & Rubber: R 345 358 558
- Raw hides & leather: R 463 221 152
- Wood Products: R 203 637 681
- Wood pulp & paper: R 3 100 457 329
- Textiles: R 3 159 519 291
- Footwear: R 28 208 706
- Stone & Glass:R 118 134 673
- Precious Metal: R 1 505 018 834
- Products Iron & Steel: R 12 954 333 525
- Machinery: R 590 298 956
- Vehicles aircraft & vessels: R 99 011 565
- Photographic & medical equipment: R 87 782 371
- Toys & Sport apparel: R 5 903 644
- Works of art: R 6 263 392
- Other unclassified goods: R 8 844 486
- Equipment Components : R0
- Total Exports to China: R 93 383 588 896
The total value of exports by South Africa to China is 36.6% more than the total value of exports by South Africa to the United States during the period in question, clearly showing the importance of China as a destination for South African exports.
The chart below shows the total value of imports by South Africa from the United States and China respectively since the start of 2018.
Imports from the United States:
The single biggest import by South Africa from the United States so far in in 2018 is Machinery, with a total value of R17.5 billion being imported from the United States during the period, and it making up 28.9% of South Africa's total imports from the United States during the period in question.
Imports from China:
As was the case with South African imports from the United States, the single biggest import by South Africa from China is Machinery, with South Africa importing Machinery from China to the value of R88.3 billion since the start of 2018. Machinery imports from China by South Africa accounts for 46.4% of South Africa's imports from China during the period January 2018 to October 2018. So why is it that South Africa is importing such large quantities and or value of Machinery? Is it due to the fact that we dont have the technical know how to manufacture these ourselves, or is it just cheaper to import it than the source it from a local supplier/manufacturer. We suspect it is a bit of both, with South Africa's manufacturing industry being in decline for the last two decades now as our economy opened up more and more and more being imported from the rest of the world.
South Africa's imports from China is 3.1 times the size of their imports from the United States. And the impact on South Africa's trade balance because of the size of South Africa's imports from China is significant. The chart below takes a look at South Africa's trade balance with the United States and China for the major product categories from the start of 2018 up to October 2018.
- Live animals: R 1 394 314 642
- Vegetables:R 787 398 603
- Animal or vegetable fats: R 40 409 615
- Prepared foodstuffs: R 1 073 656 771
- Mineral Products: R 2 638 574 557
- Chemicals: R 10 387 283 635
- Plastics & Rubber: R 3 098 625 916
- Raw hides & leather: R 27 207 129
- Wood Products: R 184 093 665
- Wood pulp & paper: R 1 484 774 319
- Textiles: R 588 708 633
- Footwear: R 32 612 233
- Stone & Glass: R 1 257 205 467
- Precious Metal: R 137 056 792
- Products Iron & Steel: R 1 553 621 027
- Machinery: R 17 505 685 678
- Vehicles aircraft & vessels: R 7 929 661 423
- Photographic & medical equipment: R 5 267 119 120
- Toys & Sport apparel: R 936 379 928
- Works of art: R 42 907 579
- Other unclassified goods: R 146 916 335
- Equipment Components: R 3 989 648 695
- Total Imports from the United States: R 60 503 861 762
The single biggest import by South Africa from the United States so far in in 2018 is Machinery, with a total value of R17.5 billion being imported from the United States during the period, and it making up 28.9% of South Africa's total imports from the United States during the period in question.
Imports from China:
- Live animals:R 1 079 370 157
- Vegetables:R 617 145 587
- Animal or vegetable fats:R 22 469 255
- Prepared foodstuffs:R 1 518 538 594
- Mineral Products:R 2 964 555 888
- Chemicals:R 13 675 201 853
- Plastics & Rubber:R 10 135 248 301
- Raw hides & leather:R 2 055 405 800
- Wood Products:R 662 422 778
- Wood pulp & paper:R 1 719 300 949
- Textiles:R 17 735 113 754
- Footwear:R 7 606 369 565
- Stone & Glass:R 3 861 040 275
- Precious Metal:R 364 160 175
- Products Iron & Steel:R 15 280 441 081
- Machinery:R 88 321 387 320
- Vehicles aircraft & vessels:R 6 183 657 561
- Photographic & medical equipment:R 3 818 632 036
- Toys & Sport apparel:R 8 840 759 932
- Works of art:R 41 397 312
- Other unclassified goods:R 32 919 397
- Equipment Components:R 3 694 230 263
- Total Imports from China :R 190 229 767 833
As was the case with South African imports from the United States, the single biggest import by South Africa from China is Machinery, with South Africa importing Machinery from China to the value of R88.3 billion since the start of 2018. Machinery imports from China by South Africa accounts for 46.4% of South Africa's imports from China during the period January 2018 to October 2018. So why is it that South Africa is importing such large quantities and or value of Machinery? Is it due to the fact that we dont have the technical know how to manufacture these ourselves, or is it just cheaper to import it than the source it from a local supplier/manufacturer. We suspect it is a bit of both, with South Africa's manufacturing industry being in decline for the last two decades now as our economy opened up more and more and more being imported from the rest of the world.
South Africa's imports from China is 3.1 times the size of their imports from the United States. And the impact on South Africa's trade balance because of the size of South Africa's imports from China is significant. The chart below takes a look at South Africa's trade balance with the United States and China for the major product categories from the start of 2018 up to October 2018.
South Africa's trade balance with the United States:
South Africa has a positive trade balance with the United States to the tune of R7.9 billion from the start of 2018 to October 2018. So basically South Africa exported R7.9 billion more in goods to the USA than what they imported from them. Thus SA being the main beneficiary of trade between the two countries. However the story looks TOTALLY different when looking at South Africa's trade balance with China.
South Africa's trade balance with China:
South Africa has a negative trade balance with China to the value of R96.85 billion from January 2018 to October 2018. Thus we imported R96.85 billion more in goods from China than what we exported to them. This clearly shows that China is the main beneficiary when it comes to trade between these two countries.
While the trade war between the USA and China continues, the world and South Africa included should know that the USA is still the biggest economy in the world, and they can place enormous pressure on China and its economy with this trade war, and this will hurt China and by virtue of that it will hurt South Africa as China is a big market for South African exports, and should China look to offset increased costs of the trade war they can easily start passing on some of the costs to some of the other buyers of their products, and as the above shows South Africa is a significant buyer of Chinese manufactured goods, so the trade war could ultimately start affecting markets and countries such as South Africa.
- Live animals:R -1 039 747 213
- Vegetables:R 1 610 309 746
- Animal or vegetable fats:R -32 816 042
- Prepared foodstuffs:R 251 853 571
- Mineral Products:R 4 123 162 074
- Chemicals:R -3 781 268 069
- Plastics & Rubber:R -1 879 073 848
- Raw hides & leather:R 115 461 748
- Wood Products:R -75 876 256
- Wood pulp & paper:R -1 188 716 377
- Textiles:R -339 273 272
- Footwear:R -6 175 349
- Stone & Glass:R -972 900 605
- Precious Metal:R 20 068 145 783
- Products Iron & Steel:R 13 823 221 162
- Machinery:R -11 606 083 640
- Vehicles aircraft & vessels:R -1 703 331 157
- Photographic & medical equipment:R -4 918 598 108
- Toys & Sport apparel:R -767 272 661
- Works of art:R 256 359 716
- Other unclassified goods:R -96 589 061
- Equipment Components:R -3 989 208 392
- South Africa's overall trade balance with the United States:R 7 851 583 750
South Africa has a positive trade balance with the United States to the tune of R7.9 billion from the start of 2018 to October 2018. So basically South Africa exported R7.9 billion more in goods to the USA than what they imported from them. Thus SA being the main beneficiary of trade between the two countries. However the story looks TOTALLY different when looking at South Africa's trade balance with China.
South Africa's trade balance with China:
- Live animals: - R 481 990 429
- Vegetables: R 2 462 164 065
- Animal or vegetable fats: - R 19 977 514
- Prepared foodstuffs: - R 212 102 789
- Mineral Products:R 61 744 344 128
- Chemicals:R -12 662 124 062
- Plastics & Rubber: -R 9 789 889 743
- Raw hides & leather: - R 1 592 184 648
- Wood Products: -R 458 785 097
- Wood pulp & paper:R 1 381 156 380
- Textiles: - R 14 575 594 463
- Footwear: -R 7 578 160 859
- Stone & Glass: -R 3 742 905 602
- Precious Metal:R 1 140 858 659
- Products Iron & Steel: -R 2 326 107 556
- Machinery: -R 87 731 088 364
- Vehicles aircraft & vessels: - R6 084 645 996
- Photographic & medical equipment: - R3 730 849 665
- Toys & Sport apparel: - R8 834 856 288
- Works of art: -R35 133 920
- Other unclassified goods:-R 24 074 911
- Equipment Components:- R3 694 230 263
- South Africa's overall trade balance with China : -R 96 846 178 937
South Africa has a negative trade balance with China to the value of R96.85 billion from January 2018 to October 2018. Thus we imported R96.85 billion more in goods from China than what we exported to them. This clearly shows that China is the main beneficiary when it comes to trade between these two countries.
While the trade war between the USA and China continues, the world and South Africa included should know that the USA is still the biggest economy in the world, and they can place enormous pressure on China and its economy with this trade war, and this will hurt China and by virtue of that it will hurt South Africa as China is a big market for South African exports, and should China look to offset increased costs of the trade war they can easily start passing on some of the costs to some of the other buyers of their products, and as the above shows South Africa is a significant buyer of Chinese manufactured goods, so the trade war could ultimately start affecting markets and countries such as South Africa.