It will want to keep strong ties with the US through the trade agreement without getting into a difficult position between the two economic powerhouses.
South Africa must tread carefully in its economic relationships to avoid being caught in the escalating tension between east and west, and more specifically, China and the US. The country’s hosting and the outcome of the 2023 Agoa Summit should strengthen its role in diplomatic relations and contribute towards safeguarding the country’s economic interests.
The country recently hosted the 15th Brics summit, which resolved to expand the Brazil, Russia, India, China and South Africa grouping to 11 member states. The enlargement will bolster Brics’ role as a geopolitical alternative to the west, which is dominated by the US. Might this be a direct challenge to American hegemony?I have been researching major global economic developments, such as globalisation and the impact of the 2008 global financial crisis, for 20 years.
Note that the geopolitical tensions between China and the US are not just about trade disputes. They also include espionage, China’s Belt and Road Initiative, climate change and environmental issues, and tensions over Hong Kong, Taiwan and South China Sea disputes.SA walks a tightrope of international alliances – it needs Russia, China and the westAs a major source of infrastructure financing to sub-Saharan Africa, China is now the region’s largest bilateral official lender.