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

This research paper examines the geopolitical and economic implications of US-led 'mega-regional' trade agreements—the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP)—and China's domestic economic reforms. The author argues that South Africa's current inward-looking trade strategy risks undermining its international competitiveness and regional leadership as the global trading system evolves.

• The United States is pursuing two 'mega-regional' trade agreements, the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), because US trade policy makers 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, focusing on investment, intellectual property, and potentially currency management. The TTIP involves 29 countries and a third of world trade, aiming to establish common regulatory standards and reduce remaining tariff barriers.
• Chinese perspectives on the TPP are split between those who see it as a US geopolitical strategy to isolate China and cement the 'pivot to Asia', and those who believe the agreement can serve as an external catalyst for China's own domestic economic reforms, similar to how WTO accession functioned 20 years prior.
• China is undergoing domestic economic reforms under the Xi Xinpeng administration, with the Shanghai free trade pilot zone serving as a site for experimentation. Key areas of focus include the private sector taking a 'decisive role' in the economy, as well as reforms to state-owned enterprises, the financial system, foreign investment restrictions, and currency.
• South Africa's current trade strategy is described as increasingly inward-looking, which the author suggests undermines its role as a regional economic gateway and its international competitiveness. The author notes that South Africa lacks a trade strategy for East Asia and faces potential devaluation of trade preferences with the EU if the TTIP is concluded, as well as potential reciprocal obligations from the US regarding 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} }