SA, China discuss economic, trade relations

It is anticipated that South Africa and China will this year establish a Strategic Dialogue that will serve as a mechanism to enhance cooperation between the two countries as China is South Africa's largest trading partner.

According to the Department of Foreign Affairs, discussions will also focus on cooperation in the arena of international affairs and peacekeeping in Africa and China's involvement in these missions, cooperation in capacity building and human resource development in support of the objectives of the Accelerated and Shared Growth Initiative of South Africa.

The establishment of diplomatic relations between the two countries has resulted in an exponential increase in political, economic, trade and multilateral cooperation.

Exports to China grew from R7.85 million in 1996, to well over R8.5 billion in 2005. Imports for the same period surged from R2.4 million in 1996 to R31.5 billion in 2005.

South Africa, on the other hand, has the potential to export commodities ranging from energy, mining and mineral related technology, financial services, biotechnology, infrastructure development and construction, to agro-processing and tourism to China.

South Africa also plans to participate in the 2010 Shanghai Expo, which is one of the largest in the world.

According to the Department of Foreign Affairs, the partnership between South Africa and China continues to strengthen through frequent meetings as well as high level visits in both directions.

South Africa's business entrepreneurs will also have the opportunity to exhibit and participate in the World Expo, giving them access to the world's biggest market.

Chinese investments into South Africa are currently tabled at $130 million, mostly in a chromium mine, while South Africa's investments in China are totalled at $400 million.

This includes investments by Anglo American, SAB Miller and a $120 million investment by property group LRPS.

Cabinet has also identified the clothing and textiles industry, chemical, mineral beneficiation, agro-processing, business process outsourcing, tourism, arts and crafts, automotives aerospace, marine and rail transport industries as priority sectors for investment.

Yang's visit to the country will span only two days, thereafter, he is set to visit the Democratic Republic of Congo on Tuesday.

While in South Africa, Minister Yang is also expected to pay a courtesy call on President Thabo Mbeki.

Article published courtesy of BuaNews