Deputy President Jacob Zuma to Co-Chair
Second South Africa - People's Republic of China (PRC)
Binational Commission (BNC), Pretoria, South Africa,
29 June 2004
Deputy President Jacob Zuma will tomorrow, Tuesday
29 June 2004, together with his Chinese counterpart,
Vice President Zeng Qinghong co-chair the Second South
Africa - People's Republic of China (PRC) Bi-national
Commission in Pretoria.
Vice President Zeng Qinghong will be accompanied by
Ministers of Education, Zhou Ji; Commerce, Bo Xilai;
State General for Quality Supervision, Inspection and
Quarantine, Li Changjiang; Vice Minister of Foreign
Affairs, Dai Bingguo; and the Assistant Minister of
Foreign Affairs, Lu Guozeng.
During the visit, the following bilateral agreements
will be signed:
- Agreement on Education;
- Exchange of Letters in regard to Grant Aid to South
Africa on Human Resources Projects;
- MOU between the General Administration of Quality
Supervision, Inspection and Quarantine of the PRC
and the Department of Agriculture of the RSA on Sanitary
and Phytosanitary Consultation Mechanism;
- Protocol of Phytosanitary Requirements for the Citrus
Export from South Africa to the People's Republic
of China;
- Cooperation Agreement between the Chamber of Commerce
and Industry South Africa (CHAMSA) and The China Council
for Promotion of International Trade (CCPIT); and
- Letter of Intent between Sasol and Consortium of
Chinese Companies.
The Importance of China
China is an economic giant. Its 1997 GDP was nearly
$900 billion, the seventh largest in the world. With
$158 billion in goods exports in 1996, China was the
world's -ninth largest merchandise exporter.
Since the initiation of economic reforms, beginning
in 1978, China has become one of the world's fastest
growing economies. Over the past 10 years, China's GDP
has grown at an average annual rate of nearly 10%.
FDI in China has doubled over the past decade, now
totalling more than US$500 billion on a cumulative basis.
The annual figure was over US$53 billion on an annual
basis.
It has the world's fastest growing car market - its
auto market grew by 35% in 2003. It is now the world's
twelfth largest producer of vehicles and the world's
third greatest steel manufacturer. China also is the
world's leading producer of coal, cement, iron ore,
and tin; it ranks second for manganese ore; third for
lead and zinc; and fourth in petroleum production, pumping
126 million barrels a day from its wells.
With a population of more than one billion citizens,
China is vast consumer market.
Relations with South Africa
Since diplomatic relations were established with China
in 1998, bilateral relations have expanded rapidly in
the political, economic, technological, cultural, educational
and scientific fields. In this regard, the BNC is an
appropriate vehicle to add additional value to the existing
bilateral relations between both countries.
In addition, as a rapidly rising economic giant, a
Permanent Member of the United Nations Security Council,
and the largest developing country in the world, China
is seen as a strategic partner of South Africa.
South Africa and China share a common perspective on
various global issues, viz:
- Restructuring of the UN
- Reform of the Global trading System
- Enhanced South-South Cooperation
In this regard, several high-level visits from China
to South Africa have taken place during the last five
years:
- Vice President Hu Jintao visited South Africa in
February 1999;
- Vice Premier Qian Qichen was invited to South Africa
to attend the inaugural ceremony of President Thabo
Mbeki as the Special Envoy of President Jiang Zemin
in June 1999;
- Mr. Li Peng, Chairman of the National People's Congress
Standing Committee paid an official visit to South
Africa in November 1999;
- President Jiang Zemin paid a State Visit to South
Africa in April 2000 during which the Pretoria Declaration
was signed which provides a political framework for
the development of relations and also serves as an
instrument to strengthen relations in an integrated
manner. During this visit, both Heads of State also
decided to set up a Binational Commission between
both countries;
- Mr Li Ruihuan, Chairperson of the Chinese People's
Political Consultative Conference visited South Africa
in April 2001; and
- Premier Zhu Rongji visited South Africa in September
2002.
President Thabo Mbeki, accompanied by eight Cabinet
Ministers, paid a very successful State Visit to China
in December 2001 during which the framework for the
BNC was formalised. The inaugural meeting of the BNC
was also held during this visit at which time the first
round of the South Africa - China Joint Economic Commission
took place.
Economic Relations with South Africa
South Africa is the largest trading partner of China
in Africa. The trade volume between China and South
Africa accounted for 20% of the total trade volume between
China and Africa. The direct bilateral trade between
the two countries started in the early 1990s. The trade
volume between China and South Africa has increased
from R 9.3 billion in 1990 to R 23,3 billion in 2003.
Beijing is particularly interested in specific South
African technologies, such as mining, electricity supply
and power stations, water management, solar energy,
pollution control, military technologies and nuclear
research.
Chinese Foreign Direct Investment (FDI) to South Africa
amounted (cumulatively) to about R 500 million, while
South African FDI into China amounted to about R 4 billion.
South Africa is the first country of destination in
sub-Sahara Africa for self-financed Chinese tourists
Economic Relations with Africa
Many unexplored opportunities exist for mutual economic
benefit between the African Continent and China:
- Investment opportunities such as, mineral extraction,
telecommunications and construction, exist in African
economies.
- China has prioritised investment in Africa and is
actively encouraging and supporting Chinese companies
that are interested in expanding their operations
in Africa. There are now 577 Chinese companies operating
in 49 African countries. The majority of these companies
are trading firms, industrial manufacturers, transport
or agricultural companies, and companies dealing in
mineral extraction. China is also actively negotiating
and signing agreements on the encouragement and protection
of investment as well as agreements on the avoidance
of double taxation. Over the period 2000 - 2002, almost
100 new Chinese companies were set up in Africa with
a total inward investment of approximately US $150
million.
- China is expected to import almost 50 per cent of
its oil requirements by 2005 since China's annual
domestic consumption of oil is expected to reach 300
million tons by 2010, of which more than half will
have to be imported.
- Other important raw material requirements include
timber, copper, non-ferrous metals and iron ore.
- China is constantly seeking new opportunities to
export to Africa and Chinese manufactured products
are considered ideal for African consumers.
- There are also indications that China is seeking
to sell more of its traditional medicines to Africa.
The China-Africa Co-operation Forum
Former President Jiang's new commercial emphasis led
to the Beijing Declaration and the Programme for China-Africa
Co-operation in Economic and Social Development adopted
in October 2000 at the Sino-African ministerial-level
conference in Beijing. The central purpose of the China-Africa
Co-operation Forum was to strengthen economic co-operation
and to consolidate areas of common interest. Jiang also
set the tone for future Sino - African relations by
committing China to closer South-South co-operation
and the creation of "an equitable and just new
international political and economic order." Furthermore,
the Beijing programme called on Sino-African business
leaders to "vigorously explore" all the "opportunities
offered" by their respective markets.
Foreign and trade ministers from 44 African countries
met Chinese diplomats in Addis Ababa from 15 - 16 December
2003, for the Second Ministerial Conference of the China
- Africa Co-operation Forum which reviewed progress
on the implementation of the agreements reached at the
October 2000 Beijing meeting, along with outlining a
new and more focused action plan.
The political framework of the Addis Ababa Action Plan
provides for continued high-level exchanges and enhanced
political dialogue along with a renewed promise from
Beijing to participate actively in African peacekeeping
operations, and to co-operate on a range of security
related issues. Co-operation in the field of social
development includes China's promise to expand its African
Human Resources Development Fund to train up to 10,
000 African technicians over the next three years. This
will be complemented by China's agreement to assist
in the following areas: medical care and public health,
cultural exchanges and people-to-people exchanges.
Bilateral Agreements
A broad range of agreements have been concluded between
South Africa and China to formalise relations. Of specific
importance inter alia are those in the fields of Police
Cooperation, Arts and Culture, Trade, Economic and Technical
Cooperation and Science and Technology Cooperation.
Bilateral Agreements include:
- Exchange of Notes on the Establishment of Informal
Offices in Pretoria and Beijing
- Joint Communiqué on the Establishment of
Consular Relations
- Memorandum of Understanding on the Establishment
of Diplomatic Relations
- Agreement concerning the Maintenance of the Consulate-General
of the Republic of South Africa in the Hong Kong Special
Administrative Region of the PRC
- Agreement concerning the Reciprocal Encouragement
of and Protection of Investments
- Exchange of Notes Exchange of Notes regarding Funding
of Edenvale / Modderfontein Low-cost Housing Project
- Agreement relating to Civil Air Transport
- Agreement on the Establishment of a Joint Economic
and Trade Commission
- Letter of Intent on Foreign Ministry Consultations
- Agreement on Trade, Economic and Technical Cooperation
- Agreement on Scientific and Technological Cooperation
- Exchange of Notes regarding the Participation in
the Integrated Fish Farming Technology Training Course
- Exchange of Notes on the Provision of Water Supply
Materials
- Notes on State to State Assurances for the Supply
of Fissionable Equipment and Material from the RSA
to the PRC
- Agreement on Phytosanitary Cooperation
- Agreement for the Avoidance of Double Taxation and
the Prevention of Fiscal Evasion with respect to Taxes
on Income
- Agreement in respect of Police Cooperation
- Pretoria Declaration on the Partnership between
the RSA and the PRC
- Agreement on Cooperation in the Fields of Arts and
Culture
- Agreement on Maritime Transport
- Agreement on Cooperation in Animal Health and Quarantine
- Memorandum of Exchange of Diplomatic Notes on South
Africa's Representation in the Macau SAR of the PRC
- Understanding on Cooperation between the National
Prosecuting Authority of the RSA and the Supreme People's
Procuratorate of the PRC
- Memorandum of Understanding on Public Health and
Medical Sciences
- Agreement on Mutual Legal Assistance in Criminal
Matters
- Extradition Treaty.
Issued by Ronnie Mamoepa on 082 990 4853.
Department of Foreign Affairs
Private Bag X152
Pretoria
0001
28 June 2004
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