growth policies
3 April 2007
Business in South Africa should look increasingly to China for lessons in
developing the country's economy.
Labour Minister Membathisi Mdladlana who is currently on a week-long visit
to China has urged Business Unity South Africa (BUSA) to establish contact with
their Chinese counterparts.
The Minister was speaking at a meeting with the employer organisation, the
China Enterprise Confederation in Beijing today (Tuesday).
"It's interesting to observe how China has managed to maintain its ideology
in the face of globalisation and reformed their economy on their own terms," he
said.
Since opening up its markets to the world, China's economy has grown in
leaps and bounds in recent years, with investment from more than 500 000
foreign companies.
"It is clear that there is something right that China is doing, and South
Africa has a lot to learn from sharing experiences with them. Close
co-operation with China would be of great benefit."
The signing of a Memorandum of Understanding by Presidents Thabo Mbeki and
China's Hu paved the way for the signing of a similar agreement between the two
countries' Labour Ministries last year.
"This�together with our political and historical ties, forms a firm base for
business to capitalise on," the Minister said.
China Enterprise Confederation's Vice President Chen Lan Tong said the
Confederation has 545 000 members throughout China. He said over 500 000
foreign companies have invested in the country.
"In the main these are high tech industries. There is also expansion in the
banking and insurance sectors."
Although China's beginning to reap the fruits of reform and the opening up
of markets, the country still faces some hurdles.
"Restructuring of state enterprises remains a challenge. The state is still
in control of key industries. We encourage local business to also look abroad
for opportunities, and South Africa is one of those destinations," said
Chen.
South Africa is giving a lot of support to China's construction
industry.
BUSA's Vic van Vuuren who is part of Minister Mdladlana's delegation has
welcomed the Minister's suggestion to form partnerships with China's Employer
Organisation.
Enquiries:
Zolisa Sigabi
Cell: 082 906 3878
Issued by: Department of Labour
3 April 2007
