China has committed to encourage its enterprises to increase investment in South Africa’s manufacturing industry and promote the creation of value-adding activities in close proximity to the source of raw materials. This was announced by the Minister of Trade and Industry, Dr Rob Davies as he was speaking at the opening of the South African National Pavilion at Xiamen, China.
Sixty two (62) South African companies from the Top 10 sectors for export and investment are showcasing their products and projects at the 17th annual China International Fair for Investment and Trade (CIFIT) taking place from 8 to 11 September 2013.
The companies are from the sectors of agro-processing, automotive components, mining engineering and equipment, chemicals, electro-technical, mining and beneficiation, renewable energy and infrastructure. China bestowed South Africa with the status of ‘Guest of Honour Country’ at CIFIT, in celebration of 15 years of diplomatic relations between the two countries.
Davies said that the intention of the exhibition was to enhance the trade and investment relations between South Africa and China.
“The exhibition is part of a multi-faceted approach of the South African government to promote trade between the two countries,” he added.
Davies also stated that China is a strategic partner to South Africa and currently South Africa’s largest trading partner to the country.
“The Comprehensive Strategic Partnership Agreement (CSPA) signed between South Africa and China in August 2010, prioritises improving the current structure of trade between the two countries, in particular by working towards a more balanced trade profile and encouraging trade in manufactured value-added products,” said Davies.
According to him, the Top 10 export products have exhibited significant growth rates in 2012, despite comprising a negligible percentage in the total value of exports to China. For example China has now become one of South Africa’s Top 10 destinations (8th in 2012) for wine exports, with an average growth rate between 2008 and 2012 of 57%.
“This is higher than China’s average growth rate of imports of wine from the rest of the world of 49%, and the highest growth rate of demand from any country for South African wine,” said Davies.
CIFIT is currently China's only international investment promotion event aimed at facilitating bilateral investment. It does not only showcase the investment environments, investment policies, investment projects but also attracts investment promotion agencies from various countries and regions to conduct investment briefings.
Caption: Minister Davies opens the South African National Pavillion at the 17th annual CIFIT in Xiamen, China.
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