visit
31 May 2006
Beijing - South African Deputy Foreign Minister Aziz Pahad today Wednesday,
31 May 2006, arrived in Beijing, China ahead of his official visit scheduled
from Wednesday, 31 May, until Monday, 5 June 2006.
Deputy Minister Pahad's visit to China comes within the context of South
Africa's commitment to strengthen relations with countries of the South with a
view to achieving the developmental agenda of the South in general and Africa
in particular.
In addition, both South Africa and China are signatories to the New Africa
Asia Strategic Partnership (NAASP) through which the leadership of Africa and
Asia committed themselves to translating the strong political and cultural
relations between both countries into strong economic relations that would see
the socio economic conditions of their peoples being elevated and the
successful fight against poverty and underdevelopment.
The following issues are expected to be raised during bilateral political
and economic discussions with Chinese Vice-Minister of Foreign Affairs, Dai
Bingguo on Friday, 2 June 2006:
* a review of bilateral political and economic relations between China and
South Africa, including the promotion of trade and investment between both
countries
* the one China policy
* the Forum on China-Africa Co-operation (FOCAC) preparations ahead of the
summit scheduled for later this year
* assessment of the implementation of the New Africa-Asia Strategic
Partnership (NAASP) a year after its adoption by African and Asian Heads of
State and government at the summit in Indonesia and the synergies of this
partnership with New Partnership for Africaâs Development (NEPAD)
* security issues including non-proliferation, conflicts, terrorism and the
use of nuclear technology for peaceful purposes
* the comprehensive reform of the United Nations (UN) including the Security
Council
* preparations for the Chinese Premier's visit to South Africa in June
2006.
While in China, Deputy Minister Pahad is also scheduled to hold discussions
with:
* Foreign Minister Li Ziaoxing
* Vice-Minister of African Affairs Lu Guozeng
* Director-General of the Department of Policy Planning at the Ministry of
Foreign Affairs Jiang Xiajuan
* Vice-Minister of the Research Office of the State Council, President of the
Chinese Academy of Social Sciences and President of the China Institute of
Contemporary International Relations.
Deputy Minister Pahad is also expected to meet with the Chairman of Shanghai
Industrial Corporation (SIIC) which has been active in South Africa since the
1990s, prominent members of the South African business community in both
Beijing and Shanghai and pay a courtesy call on the Mayor of Shanghai.
In addition, China's economic system is the third largest in the world. In
2004 China had the world's seventh largest gross domestic product (GDP).
The Chinese economy continued to grow robustly at 9,8 percent and 9,6
percent in the first and second quarter of 2004. Latest figures of the first
two months of 2005 are showing that China's exports swelled to $95 billion an
increase of 36 percent from a year earlier while imports to china grew by eight
percent to $84 billion, leaving a surplus of $11 billion. The Chinese Ministry
of Commerce forecasting that 2005 surplus will be a lot bigger. China had a
surplus of $32 billion in 2004. Much of the export growth has been in textiles
and garments, shoes, electronic goods, computers and cellphones. In January
2005 China exported garments to the value of $9,5 billion.
Economic bilateral relations
South Africa is China's key trade partner in Africa accounting for 20,8
percent of the total volume of China-Africa trade. China has set up more than
80 companies in South Africa since 1998 while Chinese Foreign Direct Investment
(FDI) to South Africa amounted (cumulatively) to about US$199,3 million, while
South African FDI into China amounted to about US$700 million (excluding
offshore investments from South African corporates such as SAB Miller and Anglo
American.
South Africa's exports to China consist mainly of raw materials such as
aluminium, nickel, manganese, zirconium, vanadium oxides, chromium ores,
granite, platinum and gold.
China's exports to South Africa have included mainly manufactured products
such as footwear, textiles, plastic products, electrical appliances, tableware
and kitchenware.
The complementary nature of the two economies provided the impetus for the
growth of trade. At the same time, bilateral trade amounts to only a very small
percentage of both China and South Africa's international trade profile,
suggesting that there is still enormous potential for an increased exchange of
goods and services.
According to 2004 statistics South Africa exports reached nearly R5,5
billion with China and imported more than R18 billion of manufactured goods
from China.
Total China-Africa trade reached about $29,5 billion in 2004, an increase of
59 percent over 2003. Growth since 2001 has increased at an average of 31,2
percent a year.
For more information contact:
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
31 May 2006
Source: SAPA
