China’s reforms, the global trading system and South Africa’s trade strategy

The paper examines how the Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP) are being used by the US to counter China's growing influence and how China may use these frameworks to drive its own domestic reforms. It argues that South Africa's current inward-looking trade policy and lack of a strategy for East Asia leave it vulnerable to losing international competitiveness and the devaluation of its trade preferences as the global trading system evolves.

• The US is pursuing two 'mega-regional' trade agreements, the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), because US policymakers view the WTO as 'moribund' and the Doha round as a failure. The TPP involves 12 countries, including Japan and Mexico, and covers about 25% of world trade, while the TTIP involves 29 countries and a third of world trade.
• China is divided on the TPP: one perspective sees it as a US geopolitical strategy to 'isolate China in the region' and support the 'pivot to Asia', while another view suggests the TPP could serve as an 'external prop' to accelerate China's domestic economic reforms, similar to its WTO accession.
• China's domestic reform agenda, as indicated by the third plenum of the Chinese Communist Party’s eighteenth central committee, aims for the private sector to play a 'decisive role' in the economy. Key areas for liberalization include state-owned enterprises, the financial system, foreign investment restrictions, and currency reforms, with the Shanghai free trade pilot zone serving as a model.
• South Africa lacks a trade strategy for East Asia and is pursuing an increasingly inward-looking domestic policy. This trajectory risks undermining its role as a regional economic gateway, devaluing its trade preferences with the EU if the TTIP is concluded, and potentially complicating its use of the African Growth and Opportunities Act after 2015.

APA

South African Institute of International Affairs (2013). China’s reforms, the global trading system and South Africa’s trade strategy. https://saiia.org.za/research/china-s-reforms-the-global-trading-system-and-south-africa-s-trade-strategy/

Chicago

South African Institute of International Affairs. China’s reforms, the global trading system and South Africa’s trade strategy. 2013. https://saiia.org.za/research/china-s-reforms-the-global-trading-system-and-south-africa-s-trade-strategy/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=China’s reforms, the global trading system and South Africa’s trade strategy |date=9 December 2013 |url=https://saiia.org.za/research/china-s-reforms-the-global-trading-system-and-south-africa-s-trade-strategy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2013chinas, author = {{South African Institute of International Affairs}}, title = {{China’s reforms, the global trading system and South Africa’s trade strategy}}, institution = {South African Institute of International Affairs}, year = {2013}, month = dec, url = {https://saiia.org.za/research/china-s-reforms-the-global-trading-system-and-south-africa-s-trade-strategy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }