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President Thabo Mbeki to host Chinese Premier Wen Jiabao 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. 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 it's 2001 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 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 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)
- Health Care: 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 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
SA - in 2005 imports from China totaled R31, 476 million, while exports came to
R8, 763 million. There is a sizeable trade imbalance in favour of China in our
bilateral trade. 
Figures in R 000 Foreign Direct Investment Chinese investments
into South Africa currently amounts 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 UK though), SAB Miller, MIH, a US$
120 million investment by property group LRPS. Issued by Ronnie Mamoepa
on 082 990 4853 Department of Foreign Affairs
Private Bag X152
Pretoria
0001 13
June 2006
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