President Mbeki to host Chinese Counterpart President Hu Jintao
Pretoria - South African President Thabo Mbeki will host his Chinese counterpart,
President Hu Jintao on his first State Visit to South Africa scheduled from Tuesday-Thursday
6-8 February 2007 at the Union Buildings in Pretoria.
President Hu who will
visit South Africa within the context of a eight-nation African tour (Liberia,
Sudan, Cameroon, Zambia, Namibia, Mozambique, Seychelles and South Africa) is
scheduled to consolidate bilateral political economic relations between South
Africa and China during his visit. President Hu's African tour follows the China-Africa
Co-operation Forum (FOCAC) Summit held in Beijing in November 2006.
President
Hu will be accompanied by Foreign Minister Li Zhaoxing, Minister of National Development
and Reform Commission Ma Kai and Minister of Commerce Bo Xilai.
Issues on
the agenda of discussions between Presidents Mbeki and Hu at the Union Buildings
on Tuesday 6 February 2007 are expected to include, among others:
The
status of bilateral political and economic relations between both countries;
The
implementation of the eight point plan with regard to China's engagement with
Africa announced by President Hu at the FOCAC Summit;
Preparations for
the celebration of ten years of formal diplomatic relations between South Africa
and the People's Republic of China commencing January 2008;
Conflict
resolution, peacekeeping and peacebuilding in Africa as China continues to play
a significant role in African peacekeeping;
The promotion and support
of AsgiSA and JIPSA and to target Chinese Foreign Direct Investment into the beneficiation
sectors of the economy;
The support of the Chinese government with regard
to the implementation of NEPAD as the Continent's socio-economic upliftment programme;
Co-operation
within the United Nations Security Council seeing that China is a permanent member
and South Africa has just acceded to the two-year non-permanent seat;
The
nuclear situation in North Korea and Iran;
Other issues of multilateral
interest including the comprehensive reform of the United Nations.
Presidents
Mbeki and Hu are scheduled to sign the following agreements on conclusion of discussions:
Protocol
on Phyto-Sanitary requirements for the export of pear fruit from China to South
Africa
Protocol on Phyto-Sanitary Requirements for Export of Table Grapes
from South Africa to China
Protocol on Phyto-Sanitary Requirements for
the Export of Apple Fruit from China to South Africa
Protocol on Phyto-Sanitary
Requirements for the Export of Tobacco-Leaf from the China to South Africa
Agreement
between South Africa and the PRC on Co-operation in the Minerals and Energy Sector.
Memorandum
of Understanding regarding the Establishment of the South Africa-China Minerals
and Energy Sectoral Co-operation Committee.
Agreement on Economic and
Technical Co-operation between South Africa and the PRC.
Whilst in
South Africa President Hu is scheduled to receive a courtesy call from Deputy
President Phumzile Mlambo-Ngcuka, deliver a keynote address at the University
of Pretoria, visit the Cradle of Humankind World Heritage Site and engage with
the Chinese in South Africa.
President Hu will depart from South Africa
on Thursday 8 February 2007.
Bilateral Economic Relations
China-Africa
trade has tripled in just five years. Beyond commercial ties, Beijing has cultivated
"soft power" in African capitals by training over 6000 African civil
servants and are sending over 15 000 Chinese doctors to 34 African countries.
There are approximately 800 firms that are operating in 49 African countries.
The
driving force behind China's relations with Africa is its demand for resources.
Hence, China's relation with Africa since 1996 has been based on resource security.
China also sees Africa as a source for food security, China has become a net food
importer due to pressure on Chinese land versus under-utilised African land resources.China's
resource and energy needs have certainly contributed to Africa's economic growth
by boosting prices and exports from Africa and will continue to do so in the foreseeable
future.
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 totalled R
31,476 million, while exports came to R 8,763 million.
Year
Exports
Imports
Total
Balance
1996
785,150
2,396,743
3,181,893
-1,611,593
1997
907,220
3,190,095
4,097,315
-2,282,875
1998
913,461
4,347,047
5,260,508
-3,433,586
1999
1,657,646
5,010,606
6,668,252
-3,352,960
2000
2,410,801
6,935,164
9,345,965
-4,524,363
2001
3,829,982
9,098,558
12,928,540
-5,268,576
2002
4,744,393
14,266,388
19,010,781
-9,521,995
2003
6,704,340
16,600,250
23,304,590
-9,895,910
2004
6,580,392
23,021,153
29,601,545
-16,440,761
2005
8,763,191
31,476,631
40,239,822
-22,713,440
Figures
in R 000 Items where South Africa has export potential
The Chinese market
represents opportunities for exports. Tie-ups and investment in the following
sectors:
Energy
Mining and mining related technology
Engineering
Financial
services
Biotechnology
Infrastructure development and construction
Capital
equipment
Agro-processing
Tourism
Foreign Direct
Investment Currently Chinese investments into South Africa are US$ 130 million,
mostly in a Chromium mine. SA investments in China are 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.
The following sectors have
been identified in Cabinet as priority sectors for investment:
