China is encouraging its electrical vehicle manufacturers to invest in South Africa as it seeks to broaden ties between the two nations.<\/p>\n\n\n\n
\u201cWe encourage the Chinese companies to consider, very seriously consider, to move some of their assembly lines or value added in South Africa,\u201d the Asian nation\u2019s ambassador to South Africa Wu Peng said in a Bloomberg interview in Johannesburg on Wednesday.<\/p>\n\n\n\n
Peng tempered his comment by noting that market conditions would play an important role in such decisions. China is South Africa\u2019s biggest trading partner and the world\u2019s leader in EVs, an industry the African nation is seeking to grow into.<\/p>\n\n\n\n
South Africa\u2019s automotive industry, which accounted for more than R271 billion in exports last year, currently depends on shipments to the European Union, where legislation is expected to gradually reduce demand for vehicles that run on diesel and gasoline.<\/p>\n\n\n\n
While the South African government announced in February that automakers will be allowed to claim a 150% tax deduction on investment in facilities to manufacture EVs, details of the plan have yet to be released.<\/p>\n\n\n\n
Chinese companies operating in South Africa are also expected to expand cooperation in critical areas such as infrastructure, new energy and mineral processing, Peng said in an address ahead of the interview attended by dignitaries.<\/p>\n\n\n\n
Chinese companies invested in South Africa include Huawei Technologies Co. Ltd., Hisense South Africa, Zijin Mining Group Co. and ZTE Corp.<\/p>\n\n\n\n
\u201cI\u2019m convinced that in the future, more and more Chinese enterprises will come to South Africa, invest in South Africa, and build for South Africa,\u201d Peng said. \u201cTogether, China and South Africa can further unlock market potential.\u201d<\/p>\n\n\n\n