Deputy President Jacob Zuma concludes his Official Visit to the People's Republic of China, 30 September 2004

Deputy President Jacob Zuma today, 30 September 2004, concluded his official visit to the Peoples Republic of China, which began on 26 September.

The visit has served to further boost the warm and strong relations, and reaffirmed the partnership for development, between South Africa and China.

The purpose of the visit was to:-

• Honour the long-standing invitation to Deputy President Zuma by Vice President ZENG Qinghong to visit China;
• Maintain the momentum of bilateral trade relations, especially after the recent Bi-National Commission;
• Promote the African agenda and New Partnership for Africa's Development;
• Seek continued Chinese support for all peace and development initiatives on the African continent.

The Deputy President was accompanied by Ministers Thoko Didiza of Agriculture and Land Affairs, Lindiwe Sisulu of Housing and Deputy Ministers Aziz Pahad of Foreign Affairs, Lulama Xingwana of Minerals and Energy and Lindiwe Hendricks of Trade and Industry.

The Delegation visited the cities of Shenzhen, in Guangdong Province, the capital Beijing and Xi'an in Shaanxi Province, and met with political leaders as well as representatives of the Chinese business community.

In Beijing, Deputy President Zuma held intensive discussions with his counterpart, Vice President ZENG Qinghong, during which they re-affirmed the longstanding sound relations between the countries, and pledged to deepen co-operation on various levels and issues for mutual benefit. The two leaders reviewed the decisions of the South Africa-China Binational Commission which met in June 2004 in Pretoria, and welcomed the steps that had been taken already to implement the agreements reached.

The Deputy President paid a courtesy call on President Hu Jintao, and met with Mr Wu Bangguo, Chairperson of the National People's Congress, Premier Wen Jiabao and Governor Cheng Andong of Shaanxi Province and held fruitful discussions with all the leaders.

The discussions centred on a wide range of issues, including the following:

• The necessity to increase trade relations, especially in the areas of minerals, energy, telecommunications, agriculture, science and technology and others. South Africa is the largest trading partner of China in Africa. The trade volume between China and South Africa has increased from R 9.3 billion in 1990 to R 23. 3 billion in 2003 and the two countries seek to further intensify economic linkages.
• The need to strengthen co-operation between China and Africa through the Sino-Africa Forum. The South African side welcomed Chinese support for the New Partnership for Africa's Development as well as the shared interest in conflict resolution and peacekeeping in Africa.
• The importance of stronger co-operation on South-South relations to advance the agenda of developing countries, and agreed on the need for the reform of international multilateral institutions to cater for the interests of the developing world.

The Deputy President and delegation were exposed to the developments in the City of Shenzhen in Guangdong Province, which was the first Special Economic Zone initiated and promoted by DENG Xiaoping, and which boasts one of the most robust and fastest growing economies since China adopted a policy of opening-up and reform. By the end of 2002, the GDP of Shenzhen had reached RMB 225.682 billion, with a year on year increase of 15 per cent. The city's GDP per capita reached USD 5604,60 in 2002. Deputy President Zuma was keen to see what lessons could be learnt by South Africa, especially with regards to boosting small and medium enterprises.

Ministers and Deputy Ministers met with their counterparts and a lot of progress was made in a number of areas.

Minerals and Energy

• Deputy Minister Xingwana of Minerals and Energy met Vice Chairperson of the National Development and Reform Commission Mr Zhang Guobao. They agreed on the need to promote joint venture projects between the two countries.
• On Tuesday, 28 September, a Memorandum of Understanding was signed by Sasol and the Combined Chinese Working Team, comprising the Shenhua Coal Liquefaction Corporation Group and the Ningxia Coal Group Company Ltd, Industry Group, under the co-ordination of the National Development and Reform Commission of the People's Republic of China, to evaluate the feasibility of establishing two potential coal to liquids projects in China based on Sasol's indirect coal liquefaction technology.

Agriculture

• Minister Didiza met with the Minister of Administration of Quality Supervision, Inspection and Quarantine Mr Li Changjiang, and agreed that South Africa will expedite the completion of the import requirements on cooked poultry meat from China. In addition, China would lift the embargo on South African animal products which was put in place in 2000 after the outbreak of the foot and mouth disease. The Minister also met her counterpart Mr Du Qinglin and they agreed to strengthen the exchange of information and collaboration.

Trade and Industry

• Deputy Minister Hendricks met Minister Gan Guoping of the State Administration for Industry and Commerce, and exchanged experiences on competition policy and consumer protection.

Foreign Affairs

• Foreign Affairs Deputy Minister Pahad met Assistant Minister for Africa in the Department of Foreign Affairs Mr Lu Guozeng

Housing

• The Minister of Housing, Dr Sisulu and Minister of Construction Liu Zhifeng discussed cooperation between SA and China on technical exchanges for the provision of low cost housing.

The South African business delegation interacted with their Chinese counterparts in support of the intentions of the two governments to increase bilateral economic activity.

The Chinese side indicated that opportunities existed in China for South African companies to invest in a number of areas, such as:

• State owned enterprises
• The energy and chemical Industry
• Infrastructure development and construction
• Water resources
• Environmental treatment
• Power resources

The South African business delegation included among others, Mr Max Sisulu of Sasol, Mr Lazarus Zim of Anglo American, Dr Diliza Mji of British Aerospace, Mr Shadrack Dladla of Balengwe Holdings, Mr Lawrence Peterson of Ibhubesi Trading, Mr Abbey Chikane of Gem and Jewellery, Ms Gisela Albrecht of Marketing Media Asia, Dr Xolani Mkhwanazi of Bateman Africa, Mr Joe Modibane of Mr Prepaid, Mr Nick Evans of Landpac, Mr Colin Napier of Crown Travel and Ms Emily Weng of Travel Destination.

Enquiries: Lakela Kaunda at 0986 1350 1263 644

Issued by the Presidency
Pretoria
30 September 2004