Jintao
4 February 2007
Pretoria: South African President Thabo Mbeki will host his Chinese
counterpart, President Hu Jintao, on his first state visit to South Africa (SA)
scheduled from Tuesday to Thursday, 6 to 8 February 2007, at the Union
Buildings in Pretoria.
President Hu who will visit South Africa within the context of an
eight-nation African tour (Liberia, Sudan, Cameroon, Zambia, Namibia,
Mozambique, Seychelles and South Africa) is scheduled to consolidate bilateral
political economic relations between South Africa and China during his visit.
President Hu's African tour follows the China-Africa Co-operation Forum (FOCAC)
Summit held in Beijing in November 2006.
President Hu will be accompanied by Foreign Minister Li Zhaoxing, Minister
of National Development and Reform Commission Ma Kai and Minister of Commerce
Bo Xilai.
Issues on the agenda of discussions between Presidents Mbeki and Hu at the
Union Buildings on Tuesday, 6 February 2007 are expected to include, among
others:
* the status of bilateral political and economic relations between both
countries
* the implementation of the eight point plan with regard to China's engagement
with Africa announced by President Hu at the FOCAC Summit
* preparations for the celebration of ten years of formal diplomatic relations
between South Africa and the People's Republic of China commencing January
2008
* conflict resolution, peacekeeping and peace building in Africa as China
continues to play a significant role in African peacekeeping
* the promotion and support of the Accelerated and Shared Growth Initiative for
South Africa (AsgiSA) and the Joint Initiative for Priority Skills Acquisition
(JIPSA) and to target Chinese foreign direct investment into the beneficiation
sectors of the economy
* the support of the Chinese government with regard to the implementation of
the New Partnership for Africa's Development (NEPAD) as the Continent's
socio-economic upliftment programme
* co-operation within the United Nations Security Council seeing that China is
a permanent member and South Africa has just acceded to the two-year
non-permanent seat
* the nuclear situation in North Korea and Iran
* other issues of multilateral interest including the comprehensive reform of
the United Nations.
Presidents Mbeki and Hu are scheduled to sign the following agreements on
conclusion of discussions:
* Protocol on Phytosanitary Requirements for the Export of Pear Fruit from
China to South Africa
* Protocol on Phytosanitary Requirements for Export of Table Grapes from South
Africa to China
* Protocol on Phytosanitary Requirements for the Export of Apple Fruit from
China to South Africa
* Protocol on Phytosanitary Requirements for the Export of Tobacco-Leaf from
the China to South Africa
* Agreement between South Africa and the People's Republic of China (PRC) on
Co-operation in the Minerals and Energy Sector
* Memorandum of Understanding regarding the Establishment of the South
Africa-China Minerals and Energy Sectoral Co-operation Committee
* Agreement on Economic and Technical Co-operation between South Africa and the
PRC.
Whilst in South Africa President Hu is scheduled to receive a courtesy call
from Deputy President Phumzile Mlambo-Ngcuka, deliver a keynote address at the
University of Pretoria, visit the Cradle of Humankind World Heritage Site and
engage with the Chinese in South Africa.
President Hu will depart from South Africa on Thursday, 8 February 2007.
Bilateral Economic Relations
China-Africa trade has tripled in just five years. Beyond commercial ties,
Beijing has cultivated "soft power" in African capitals by training over 6 000
African civil servants and are sending over 15 000 Chinese doctors to 34
African countries. There are approximately 800 firms that are operating in 49
African countries.
The driving force behind China's relations with Africa is its demand for
resources. Hence, China's relation with Africa since 1996 has been based on
resource security. China also sees Africa as a source for food security; China
has become a net food importer due to pressure on Chinese land versus
under-utilised African land resources. China's resource and energy needs have
certainly contributed to Africa's economic growth by boosting prices and
exports from Africa and will continue to do so in the foreseeable future.
Since the establishment of diplomatic relations in 1998, trade between China
and South Africa has grown significantly, with China becoming South Africa's
2nd 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 South Africa - in 2005 imports from China
totalled R31,476 million, while exports came to R8,763 million.
Figures in R'000
Year: 1996
Exports: 785,150
Imports: 2,396,743
Total: 3,181,893
Balance: -1,611,593
Year: 1997
Exports: 907,220
Imports: 3,190,095
Total: 4,097,315
Balance: -2,282,875
Year: 1998
Exports: 913,461
Imports: 4,347,047
Total: 5,260,508
Balance: -3,433,586
Year: 1999
Exports: 1,657,646
Imports: 5,010,606
Total: 6,668,252
Balance: -3,352,960
Year: 2000
Exports: 2,410,801
Imports: 6,935,164
Total: 9,345,965
Balance: -4,524,363
Year: 2001
Exports: 3,829,982
Imports: 9,098,558
Total: 12,928,540
Balance: -5,268,576
Year: 2002
Exports: 4,744,393
Imports: 14,266,388
Total: 19,010,781
Balance: -9,521,995
Year: 2003
Exports: 6,704,340
Imports: 16,600,250
Total: 23,304,590
Balance: -9,895,910
Year: 2004
Exports: 6,580,392
Imports: 23,021,153
Total: 29,601,545
Balance: -16,440,761
Year: 2005
Exports: 8,763,191
Imports: 31,476,631
Total: 40,239,822
Balance: -22,713,440
Items where South Africa has export potential
The Chinese market represents opportunities for exports, tie-ups and
investment in the following sectors:
* energy
* mining and mining related technology
* engineering
* financial services
* biotechnology
* infrastructure development and construction
* capital equipment
* agro-processing
* tourism.
Foreign Direct Investment
Currently Chinese investments into South Africa are US$130 million, mostly
in a chromium mine. SA investments in China are US$400 million including
investments by Anglo American [funds from the United Kingdom (UK) though], SAB
Miller, MIH, a US$120 million investment by property group LRPS.
The following sectors have been identified in Cabinet as priority sectors
for investment:
* clothing and textiles
* chemicals
* mineral beneficiation
* agro-processing
* business process outsourcing
* tourism
* arts and crafts
* automotives
* aerospace, marine and rail transport.
For further information, please contact:
Ronnie Mamoepa
Cell: 082 990 4853
Issued by: Department of Foreign Affairs
4 February 2007
Source: SAPA
