South Africa is benefiting from the dispute between China and Australia

For South African wine producers such as Vergenoegd Löw, the pandemic of the new coronavirus could have been a complete disaster, but the trade conflict between China and Australia was unexpectedly thrown at them. The dispute erupted after Australia called in April last year for an international investigation into the origin of the new coronavirus that had spread from central China. Beijing responded in November by imposing high, more than 200 percent import tariffs on Australian wines. The move meant unexpected support for African producers. "Now we have a chance for a significantly higher volume of exports," said Shaun McVey, marketing manager at Vergenoegd Löw, which has signed a new agreement with China. "Instead of three to four containers a year, we have the option of delivering 15 to 20 containers," he added. According to the association of South African wine producers Wines of South Africa, exports from South Africa to China have jumped by 50% in the last three months. According to Martyn Davies of Deloitte, the continuation of the trade war between China and Australia also creates great opportunities for other sectors of the agribusiness, as Beijing has also imposed high tariffs on barley and beef. On the other hand, realizing the full potential will not be easy. According to analysts, the Chinese market carries a number of obstacles, such as a language barrier or unpredictable bureaucracy. "Many African companies are lagging far behind in this regard," Davies said, adding that Australian companies have been involved in the Chinese market for 35 years. The conflict also meant support for the African extractive sector. Over the last decade, Beijing has invested in many projects in Africa to ensure a steady supply of raw materials. Now these investments are starting to pay off for African states. While, for example, imports of bauxite to China from Australia fell by 22% year on year in the last quarter of last year, imports from West African Guinea increased by 70%. It is similar with coal. After Australia's coal exports to China fell to zero in December, South Africa exported coal to thermal power plants to China for the first time in five years. And exporters believe that deliveries will continue to grow throughout the year.