Deputy Foreign Minister Aziz Pahad concludes Official Visit to Peoples Republic of China

Shanghai - Deputy Foreign Minister Aziz Pahad will tomorrow Monday 5 June 2006 conclude his official visit to the Peoples Republic of China that saw him visit Beijing and Shanghai from Wednesday - Monday, 31 May - 5 June 2006.

Deputy Minister Pahad was accompanied by Deputy Minister of Finance Jabu Moleketi and senior officials from the Foreign Affairs and Trade and Industry.

While in Beijing Deputy Ministers Aziz Pahad and Jabu Moleketi held discussions with Foreign Minister Li Zhaoxing, the Assistant Minister of Foreign Affairs for Africa Mr HE Yafei, Vice Minister of the Research Office of the State Council, Jiang Xiaojuan, Head of the Communist Party International Department and representatives of the South African business community based in China.

Discussions focused on:

  • Bilateral political and economic relations between both countries;
  • Developments in Africa including conflict resolution and peacekeeping in the Great Lakes region, Angola, Sudan, Cote d'Ivoire;
  • Preparations for the visit to South Africa by the Chinese Premier Wen Jiaboa scheduled from 21-22 June 2006 and the forthcoming Sino-Africa Summit to be hosted in Beijing in November 2006;
  • Co-operation in multilateral fora including South Africa's chairmanship of the Group of 20 (G-20) and the Group of 77 + China (G-77 + China);
  • The comprehensive reform of the United Nations; and
  • Other issues of international interest including the nuclear issue in Iran and North Korea, Iraq and the escalating tensions between Israel and Palestine.

Discussions affirmed that South Africa is a strategic partner for China and that both countries were allies in efforts to achieve the developmental agenda of the South. It was reiterated by both China and South Africa, that as signatories to the New Africa Asia Strategic Plan, both countries should be increasingly consolidating their political relations into stronger economic relations with a view to creating better lives for all their people and fighting poverty and underdevelopment.

South Africa is presently 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.)

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.

In addition, both President Mbeki and Chinese President Hu Jintao, as outreach partners together with India and Mexico, will be representing the interests of developing countries at the Group of 8 (G-8) Summit to be hosted by Russia in July 2006. South Africa and China have both also been elected to the United Nations newly implemented Human Rights Council.

Ministers Pahad and Yafei reiterated their positions that it is imperative the United Nations and all its institutions, as the premier institution charged with protecting and defending multilateralism, be transformed if it is to effectively deliver on this mandate.

Both countries agreed to continue their co-operation in multilateral fora with a renewed focus on the implementation of the developmental agenda of the South.

Assistant Minister Yafei also indicated China's intention to synergise economic co-operation projects with Africa through the framework of NEPAD as the Continent's socio-economic development programme. In this regard, China has committed itself to cancelling some of Africa's debt, providing "soft loans" to African countries and increasing official development assistance (ODA) to the Continent.

With regard to peace and security in Africa, Assistant Minister Yafei received a thorough briefing from Deputy Minister Pahad. Deputy Minister Pahad also thanked China for its contribution to United Nations peacekeeping operations on the Continent and for its efforts to contribute to post-conflict reconstruction and development in countries like Angola and the Sudan,

China reiterated its position that, flowing from its historical relations with the continent, it will continue to be involved in Africa through peacekeeping operations and post-conflict reconstruction and development.

Deputy Ministers Pahad and Yafei reiterated that the conflict situations in the Middle East, including Iran, Afghanistan, Israel and Palestine must be resolved if global peace and security is to be achieved. The inflammatory situation in the Middle East cannot be sustained and increasingly gives to rise to greater global tensions and creates a more fertile climate for terrorism.

The South African delegation also received an extensive briefing by Minister Xiaojuan regarding China's experiences of socio-economic development including its achievement of an average of 9.6% growth in the last 25 years and efforts to develop its human capital through primary and tertiary education, on-the-job training and other initiatives.

These lessons will be useful to South Africa as it implements its Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and Joint Initiative for Priority Skills Acquisition (JIPSA) under the stewardship of Deputy President Phumzile Mlambo-Ngcuka.

Deputy Minister Pahad said it would be imperative that both the South African government and private sector and parastatals take lessons from China's exponential growth in a very short time.

In Shanghai, Deputy Minister Pahad held discussions with the Vice Mayor of Shanghai, the Vice President of the Shanghai Industrial Investment Co-operation and South African businessman based in Shanghai.

The Shanghai Industrial Investment Co-operation was founded and registered in Hong Kong in July 1981 and has grown in scale and overall strength, being the largest and most powerful integrated overseas business group from Shanghai. The Shanghai Industrial Investment Co-operation has been active in South Africa since 1990.

Deputy Minister Pahad will return to South Africa on Tuesday, 6 June 2006.

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

4 June 2006

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