Minister Dlamini Zuma to hold discussions with Chinese Counterpart

Pretoria - South African Foreign Minister Dr Nkosazana Dlamini Zuma will on Tuesday 15 May 2007 depart Brussels for Beijing, China where she is expected to hold bilateral political and economic discussions with her counterpart Foreign Minister Yang Jiechi on Sunday 20 May 2007.

Minister Dlamini Zuma was in Brussels where she led a senior South African Government delegation including Ministers Nosiviwe Mapisa-Nqakula and Marthinus van Schalkwyk to the SA-EU Ministerial Troika meeting.

In China, discussions between Ministers Dlamini Zuma and Yang come within the context of South Africa's priority to consolidate political, economic and trade relations with the Peoples Republic of China.

Issues on the agenda of discussions between Ministers Dlamini Zuma and Jiechi are expected to include, among others:

• The status of bilateral political and economic relations between both countries;
• Preparations for the Binational Commission scheduled to be held in the second half of 2007;
• Celebration of the 10th Anniversary of Diplomatic relations;

A briefing on political developments in Africa including peacekeeping and conflict resolution;

• A briefing on developments in Asia; and
• Other issues of global importance.

While in Beijing, Minister Dlamini Zuma is also expected to pay a courtesy call upon the Chinese Premier and visit Shanghai.

Minister Dlamini Zuma will depart from Beijing for Hanoi, Vietnam on Tuesday 22 May 2007 where she will provide political support to President Thabo Mbeki during his State Visit to Vietnam.

BILATERAL ENGAGEMENT WITH CHINA

South Africa's strategic engagement with China is a key foreign policy priority. South Africa and China share many of the same social and developmental challenges, including those induced by globalisation and historic inequity.

China has been identified as a key global actor with whom South Africa seeks to broaden relations in support of South-South cooperation, another key objective of South Africa's foreign policy. In this context, South Africa hopes to mobilise China's support to promote African concerns in the UN and other multilateral fora. The Forum on China-Africa Cooperation was initiated in October 2000, as the chief instrument of engagement between the PRC and Africa.

South Africa adopted the "One China" Policy in December 1997, resulting in the severing of diplomatic relations with Taiwan. Full diplomatic relations with the PRC were established in January 1998. Emphasising the strategic importance of these relations was the signing of the Pretoria Declaration on Partnership in April 2000 and the Programme for Deepening Strategic Partnership in June 2006. A Bi-National Commission was established in 2002, the third session of which is scheduled to be held during 2007. President Mbeki concluded a State Visit to the Peoples Republic of China in November 2006 and both Premier Wen Jiabao (June 2006)and President Hu Jintao (February 2007) visited South Africa. These visits underline the strength of the bilateral partnership.

South Africa is China's key trade partner in Africa, accounting for nearly 21 percent of the total volume of China-Africa trade. In 2006 South African exports amounted to nearly R14, 02 billion, with imports reaching R46, 72 billion. In 2006 China became South Africa's 2nd largest import trading partner, and 6th largest export partner.

South Africa's exports to China consist mainly of raw materials such as aluminium, nickel, manganese, zirconium, vanadium oxides, chromium ores, and 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.

CHINA AND SOUTH AFRICA: TRADE STATISTICS (Rand '000 - Stats supplied by dti)

If one considers trade between South Africa and the Greater China region (PRC, Hong Kong, Macau and Taiwan), South African exports in 2006 amounted to R 23, 54 billion, while South African imports from the region amounted to R56, 98 billion. Total trade between South Africa and the Greater China region therefore reached a massive R 80, 52 billion during 2006.

THE ROLE OF CHINA IN AFRICA

Since 2000, China's trade with Africa had nearly tripled to US$39, 8 billion in 2005. Trade between China and Africa reached $55.5 billion in 2006, an increase of 40 percent year-on-year. China exported $26.7 billion to Africa, an increase of 43 percent over the previous year, while China imported goods worth $28.8 billion from Africa, up 37 percent. Raw materials and agricultural products are still major African exports to China, and the export of high-tech products is also on the rise.

By the end of 2005, China had invested $6.27 billion in 49 countries in Africa, in sectors such as trade, production and processing, resource development, transportation, agriculture and development of agricultural products.

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. Developing countries, and particularly African states, can provide the natural resources China desperately needs. Chinese officials believe Beijing can increase its oil and gas imports from Africa, which currently supplies 30 percent of China's total imports. Although China's primary interest in Africa is energy, it has major interests in other natural resources, particularly metals, food and timber. It exports textiles and low-cost consumer goods, primarily electronic and high-technology products, and invests in infrastructure. China backs its trading relations with aid, debt relief, scholarships, training and the provision of specialists. It is also a major supplier of military hardware, and has supplied peacekeepers - to the DRC and Liberia - and election observers to Ethiopia.

Issued by Ronnie Mamoepa on 082 990 4853

Department of Foreign Affairs
Private Bag X152
Pretoria
0001

15 May 2007