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Deputy Minister Aziz Pahad Arrives in China Ahead of Official
Visit Beijing - South African Deputy Foreign Minister Aziz Pahad today Wednesday
31 May 2006 arrived in Beijing China ahead of his official visit scheduled from
Wednesday - Monday, 31 May - 5 June 2006. Deputy Minister Pahad's visit
to China comes within the context of South Africa's commitment to strengthen relations
with countries of the South with a view to achieving the developmental agenda
of the South in general and Africa in particular. In addition, both South
Africa and China are signatories to the New Africa Asia Strategic Partnership
(NAASP) through which the leadership of Africa and Asia committed themselves to
translating the strong political and cultural relations between both countries
into strong economic relations that would see the socio-economic conditions of
their peoples being elevated and the successful fight against poverty and underdevelopment. The
following issues are expected to be raised during bilateral political and economic
discussions with Chinese Vice Minister of Foreign Affairs Dai Bingguo on Friday,
2 June 2006: - A review of bilateral political and economic relations
between China and South Africa, including the promotion of trade and investment
between both countries;
- The One-China policy;
- The Forum on China-Africa
Co-operation (FOCAC) preparations ahead of the Summit scheduled for later this
year;
- Assessment of 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;
- Security issues including non-proliferation, conflicts, terrorism,
and the use of nuclear technology for peaceful purposes;
- The comprehensive
reform of the United Nations including the Security Council; and
- Preparations
for the Chinese Premier's visit to South Africa in June 2006.
While
in China, Deputy Minister Pahad is also scheduled to hold discussions with: - Foreign
Minister Li Ziaoxing;
- Vice-Minister of African Affairs Lu Guozeng;
- Director-General
of the Department of Policy Planning at the Ministry of Foreign Affairs Jiang
Xiajuan;
- Vice-Minister of the Research Office of the State Council, President
of the Chinese Academy of Social Sciences and President of the China Institute
of Contemporary International Relations
Deputy Minister Pahad is also
expected to meet with the Chairman of Shanghai Industrial Corporation (SIIC) which
has been active in South Africa since the 1990s, prominent members of the South
African business community in both Beijing and Shanghai and pay a courtesy call
on the Mayor of Shanghai. In addition, China's economic system is the third
largest in the world. In 2004 China had the world's seventh largest gross domestic
product (GDP). The Chinese economy continued to grow robustly at 9.8% and
9.6% in the first and second quarter of 2004. Latest figures of the first two
months of 2005 are showing that China's exports swelled to $95 billion an increase
of 36% from a year earlier while imports to china grew by 8% to $84 billion, leaving
a surplus of $11 billion. The Chinese Ministry of Commerce forecasting that 2005
surplus will be a lot bigger. China had a surplus of $32 billion in 2004. Much
of the export growth has been in textiles and garments, shoes, electronic goods,
computers and cellphones. In January 2005 China exported garments to the value
of $9.5 billion. Economic Bilateral Relations South Africa
is China's key trade partner in Africa accounting for 20,8% of the total volume
of China-Africa trade. China has set up more than 80 companies in South Africa
since 1998 while Chinese FDI to South Africa amounted (cumulatively) to about
US$ 199.3 million, while South African FDI into China amounted to about US$ 700
million (excluding offshore investments from South African corporates such as
SAB Miller and Anglo American. South Africa's exports to China consist
mainly of raw materials such as aluminium, nickel, manganese, zirconium, vanadium
oxides, chromium ores, granite, platinum and gold. China's exports to South
Africa have included mainly manufactured products, such as footwear, textiles,
plastic products, electrical appliances, tableware and kitchenware. The
complementary nature of the two economies provided the impetus for the growth
of trade. At the same time, bilateral trade amounts to only a very small percentage
of both China and South Africa's international trade profile, suggesting that
there is still enormous potential for an increased exchange of goods and services. According
to 2004 statistics South Africa exports reached nearly R5.5 billion with China
and imported more than R18 billion of manufactured goods from China. 
Total
China-Africa trade reached about $29.5 billion in 2004, an increase of 59% over
2003. Growth since 2001 has increased at an average of 31.2 percent a year.
Issued
by Ronnie Mamoepa on 082 990 4853 Department of Foreign Affairs
Private
Bag X152
Pretoria
0001 31 May 2006 | 
