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President Jacob Zuma accepted an invitation by President Xi Jinping to pay a State Visit to the People’s Republic of China from 4 to 5 December 2014. During the visit the President is expected to officially represent South Africa at the closing ceremony for the Year of South Africa 2014 in China and hand the Year of China in South Africa 2015 to President Xi.
During President Xi Jinping’s state visit to South Africa from 25 to 26 March 2013, the two leaders agreed to designate 2014 as the Year of South Africa in China, and 2015 as the Year of China in South Africa. The Year of South Africa in China coincides with South Africa’s celebration of 20 years of Freedom and Democracy.
Some of the objectives of President Zuma’s State Visit to China are to:
- review the status of our bilateral relations with the People’s Republic of China to ensure that the strategic relationship already defined is further strengthened, focussing on the priority issues of development in South Africa and Africa
- adopt the China-South Africa 5-10 Year Framework on Cooperation that will further entrench the implementation of agreements entered into since the conclusion of the Beijing Declaration in 2010 and expand on the Comprehensive Strategic Partnership
- discuss ways of supporting our industrialisation agenda by agreeing to invest in the development of science and technology, agro-processing; mining and mineral beneficiation, renewable energy, finance and tourism
- review progress in the locomotive procurement project, particularly cooperation in equipment manufacturing and the localisation of procurement through joint ventures with South African companies
- review progress with cooperation on infrastructure development
- ensure that our relations with China remain central to realising our developmental agenda through our foreign policy, as we increase our efforts to implement the National Development Plan (NDP), cooperating in the areas of agriculture, trade and industry and finance
- continue to partner with China in addressing Africa’s developmental agenda through our co-chairship of Forum on China-Africa Cooperation (FOCAC) until 2018.
Trade with China
The total trade between South Africa and China grew from R121 billion in 2008 to R271 billion by the end of 2013. Since 2009, China has been our number one trading partner globally. However, the trade balance has been in favour of China since 2008 due to the composition of trade between the two countries where South Africa exports primary products and commodities to China, whilst importing manufactured and high-tech products from China.
A total of 11 South African companies are investing in China with a capital expenditure of R51.8 billion between January 2003 and September 2014. Investments are in a range of sectors such as consumer products, industrial machinery, minerals, business services and chemicals.
Altogether 39 Chinese companies are investing in South Africa with a capital expenditure of R14.7 billion between January 2003 and September 2014. Chinese investments are mainly in automotive (FAW), metals (Sinosteel), building and construction sectors (Jingdong). China is also considering investing in processing of agricultural products such as macadamia nuts and soya beans.
A South Africa-China Business Forum will be held on 5 December 2014. Approximately 100 South African companies operating in sectors such as finance, infrastructure, energy, manufacturing and mining and capital equipment will participate. It is expected that approximately 150 Chinese enterprises will attend the Business Forum.
