13 June 2006
Pretoria - South African President Thabo Mbeki will host Chinese Premier Wen
Jiabao on a two-day official visit scheduled from Wednesday - Thursday, 21 - 22
June 2006 at Tuynhuys in Cape Town.
The visit to South Africa by Premier Wen Jiabao is part of his seven nation
African visit, the first by a Chinese Premier in fifty years aimed at the
strengthening and consolidating political and economic relations between South
Africa and China in particular and Africa in general.
China considers South Africa a strategic partner in its endeavours to
strengthen and consolidate its historical relations with Africa. In addition,
2008 will see a decade since the establishment of bilateral diplomatic
relations between both countries.
In this regard, South Africa and China are signatories to the New Africa
Asia Strategic Partnership (NAASP) whose thrust is the strengthening of
economic relations between the continents of Africa and Asia to reflect the
strong political, cultural and people-to-people relations that have existed for
many decades. Stronger economic relations through increased foreign direct
investment (FDI), market access and trade relations are intended to contribute
to the alleviation of poverty and underdevelopment that is experienced by the
peoples of Africa and Asia.
Accordingly, discussions between President Thabo Mbeki and Premier Wen
Jiabao on Wednesday, 21 June 2006 are expected to include:
* A review of bilateral political and economic relations between China and
South Africa, including the promotion of trade and investment between both
countries and the One-China policy. In this regard, China is now the world's
seventh-largest economy and among the fastest growing. Gross Domestic Product
(GDP) officially grew by 9.5% in 2004, the fastest for eight years, and has
averaged above 8% growth over the last decade. This rapid increase is partly a
function of China growing from a low base, but also derives from China's
considerable and ongoing economic reforms, including its 2001 Word Trade
Organisation (WTO) accession.
* The Forum on China-Africa Co-operation (FOCAC) preparations ahead of the
Summit scheduled for later this year. Within this context, President Mbeki and
Premier Jiabao are expected to assess the implementation of the New Africa-Asia
Strategic Partnership 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 the New Partnership for Africaâs Development (NEPAD) as
Africa's socio-economic development plan;
* Co-operation between South Africa and China under the auspices of South
Africa's Accelerated and Shared Growth Initiative (AsgiSA) and Joint Initiative
for Priority Skills Acquisition (JIPSA);
* Security issues including non-proliferation and the use of nuclear
technology for peaceful purposes;
* Co-operation in multilateral fora including the:
* G-77 + China that focuses primarily on strengthening South-South
co-operation in the interests of achieving the developmental agenda of the
South
* the newly established Human Rights Council of which both South Africa and
China are members
* the forthcoming Group of 8 (G-8) Summit to be hosted in Russia from 17-19
July 2006. Both South Africa and China, in addition to Mexico and Brazil, will
be participating in the Summit as "Strategic Outreach Partners" of the G-8. In
this regard, the 2006 G-8 meeting will discuss:
* International energy security (including climate change)
* Healthcare: Prevention of communicable diseases
* Education development; and
* The G-20 that focuses largely on the successful conclusion of the Doha
Development Round and the World Trade Organisation negotiations. China chaired
this forum in 2005 and South Africa is the current chair. In this regard, both
South Africa and China have synergistic views on the reform and strengthening
of the international trading and financial system;
* Other issues of multilateral interest inter alia, the comprehensive reform
of the United Nations.
President Thabo Mbeki and Premier Wen Jiaboa will, on conclusion of
discussions co-sign the Programme of Co-operation on Deepening the Strategic
Partnership between the Peoples Republic of China and South Africa.
While in South Africa, Premier Wen Jiabao is also expected to meet with
Deputy President Phumzile Mlambo-Ngcuka, co-host the China-South Africa
Business Co-operation Forum together with Deputy President Mlambo-Ngcuka, hold
discussions with the Speaker of Parliament Baleka Mbete and the Chairperson of
the National Council of Provinces Mninwe Johannes Mahlangu and meet with
representatives of the Chinese enterprises and the Overseas Chinese Community
in South Africa.
Economic Bilateral Relations
Trade and Investment Links with South Africa
Since the establishment of diplomatic relations in 1998, trade between China
and South Africa has grown significantly, with China becoming South Africa's
second largest import trading partner in 2005, comprising 9% of total imports
and 8th largest export partner, comprising 3% of total exports from South
Africa.
In fact both imports and exports grew 30% in 2005 compared to 2004. China
still enjoys a massive trade surplus with SA - in 2005 imports from China
totalled R31,476 million, while exports came to R8,763 million. There is a
sizeable trade imbalance in favour of China in our bilateral trade.
EXPORTS
1996: R785 150
1997: R907 220
1998: R913 461
1999: R1 657 646
2000: R2 410 801
2001: R3 829 982
2002: R4 744 393
2003: R6 704 340
2004: R6 580 392
2005: R8 763 191
IMPORTS
1996: R2 396 743
1997: R3 190 095
1998: R4 347 047
1999: R5 010 606
2000: R6 935 164
2001: R9 098 558
2002: R14 266 388
2003: R16 600 250
2004: R23 021 153
2005: R31 476 631
TOTAL
1996: R3 181 893
1997: R4 097 315
1998: R5 260 508
1999: R6 668 252
2000: R9 345 965
2001: R12 928 540
2002: R19 010 781
2003: R23 304 590
2004: R29 601 545
2005: R40 239 822
BALANCE
1996: -R1 611 593
1997: -R2 282 875
1998: -R3 433 586
1999: -R3 352 960
2000: -R4 524 363
2001: -R5 268 576
2002: -R9 521 995
2003: -R9 895 910
2004: -R16 440 761
2005: -R22 713 440
Foreign Direct Investment
Chinese investments into South Africa currently amount to US$130 million,
mostly in a Chromium mine.
South African investments in China amount to US$400 million including
investments by Anglo American (funds from the United Kingdom though), SAB
Miller, MIH, a US$120 million investment by property group LRPS.
Enquiries: Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
13 June 2006
Source: SAPA
