Forging stronger links with China
President Jacob Zuma leads 100-strong business contingent to Asian giant
Jeff Radebe, The New Age, Johannesburg, 3 December 2014
One of Africa's leading economies and the world's largest developing country
are on track to forge even stronger trade and investment ties that will
define the long-term relations of the respective nations.
President Jacob Zuma, accompanied by a 100-strong business delegation, will
this week begin a two-day state visit to China which will culminate in the
signing of 10 agreements.
The visit consolidates the strong economic and political ties we have built
over the past 16 years since the establishment of formal diplomatic
relations and opens new opportunities to grow our economy.
The agreements in the pipeline include the strengthening of bilateral
relations, deepening areas of cooperation, setting requirements for the
export and import of products, promoting investment and concluding financing
deals.
President Zuma and his Chinese counterpart President Xi Jinping will review
the bilateral relations between the two nations to ensure that the strategic
relationship is strengthened and that development in South Africa and Africa
is prioritised.
During the visit the China-South Africa 5-10 Year Framework on Cooperation
will be adopted that will ensure that the agreements from the Beijing
Declaration signed during President Zuma's previous state visit in 2010 are
strengthened and expanded.
Importantly, we will use this opportunity to discuss how it can support our
nation's industrialisation by investing in the development of science and
technology, agro-processing, mining and mineral beneficiation, renewable
energy, finance and tourism.
The National Development Plan which charts our course to 2030 commits us to
an industrialised path in order to grow our economy so that we can overcome
the triple challenges of unemployment, poverty and inequality.
It highlights that South Africa could become a global leader in the
manufacturing of goods, and rendering of services to the mining industry,
where it has the know-how.
The state visit will also review progress on the cooperation of Chinese
companies in equipment manufacturing and the localisation of procurement
through joint ventures with South African companies for the building of new
passenger trains.
To improve passenger rail services the government has embarked on one of the
world's biggest rail projects to overhaul passenger trains. We are building
a factory in Ekurhuleni early next year to produce the required parts.
The project will create over 1500 direct jobs in the factory and 33000
indirect jobs over the first 10 years.
It is through the various agreements entered into since the establishment of
formal ties in 1998 that China has become the top destination for South
Africa's exports making it the country's single largest trading partner
since 2009.
Last year our bilateral trade with China increased by 32% to R270bn from
R205bn in 2012. South Africa is China's largest trading partner in Africa.
However, the trade relationship has been skewed in China's favour as South
Africa's major exports have traditionally been raw materials from the mining
industry.
In contrast, South Africa imports finished products such as clothing,
machinery and equipment. Recognising the need for a more equitable trade
balance, the two countries are working to correct the situation.
South Africa is promoting its value-added exports to China and this year was
designated as the Year of South Africa in China.
Through this initiative we have showcased South African innovations and best
practices in areas such as science and technology, mining, arts and culture,
tourism and people to people interaction.
We also used the opportunity to profile South Africa's political, economic,
social and cultural achievements since the advent of a democracy. Next year
has been designated the Year of China in South Africa.
To help rectify the trade imbalance there has been a deliberate move to
increase investment by Chinese firms in South Africa. Between January 2003
and January 2014 we have recorded 38 foreign direct investment projects
valued at R13.3bn.
The Minister of Trade and Industry, Rob Davies, emphasised that measures are
in place to ensure a fair trade spread.
"We agreed there should be procurement missions coming to South Africa
targeting the acquisition of value added products," he said.
Away from the headlines there are numerous Chinese companies that are
helping to reduce unemployment.
During the period, a total of 10992 jobs were created. The visit will help
strengthen this relationship. Both countries champion developmental issues,
South-South cooperation and participate in a number of multilateral forums.
Moreover, the work of South Africa and China through the BRICS grouping is
helping reform the global political and economic architecture. The level of
cooperation between China and South Africa in addressing global challenges
showcased with the headquarters of BRICS's New Development Bank in Shanghai
and its African Regional Centre in South Africa. China regards South Africa
as a key partner in advancing its relations with the African continent.
. Jeff Radebe, Minister in the Presidency
From: http://tnaepaper.co.za/
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