China’s new investment in South Africa pales alongside the landmark $5.5bn stake that the Industrial and Commercial Bank of China acquired in Standard Bank two and a half years ago. Nevertheless, the investment by Jidong Development Group and the China Africa Development Fund is a highly significant one for two reasons. First, it reflects growing Chinese commercial interest in South African – and more broadly African – domestic markets. Second, it provides another illustration of how South African companies themselves are reorienting their own business towards Africa, China, India, Brazil and other big emerging markets, in line with a broader shift in the country’s trade patterns.
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