SA, China sign 7 agreements
30 June 2004
South Africa and China signed seven agreements involving education, business and agriculture after a binational commission meeting in Pretoria this week.
Deputy President Jacob Zuma told reporters that the visit by his Chinese counterpart, Zeng Qinghong, had helped develop political trust that would manifest itself in the building of a strong partnership between the two countries.
"We certainly do share views on a number of issues, and there are many similarities between our two countries", Deputy President Jacob Zuma said, adding that South Africa and China had agreed to work together both economically and politically.
Zen, Zuma and their ministers signed agreements pertaining to education, grant aid to South Africa on human resources projects, and export quality control on agricultural goods.
Agreements on the export of citrus products to China, co-operation between the Chamber of Commerce and Industry SA and the China Council for
Promotion of International Trade, and a letter of intent between petroleum company Sasol and six Chinese companies, were also signed.
A possible free trade agreement between China and the Southern African Customs Union was also discussed.
Ian Watson, chief executive of Transvaal Ferro-Chrome Ltd (now International Ferro Metals), said Chinese companies had purchased 25% equity in International Ferro Metals for R1.5-billion. He said that China, a huge market for metals produced in South Africa, was starting to invest considerable sums in the local market.
Sasol has also embarked on a feasibility study on two US$3-billion projects in China, involving extracting oil from coal using Sasol technology, with a consortium of six Chinese companies.
"China has plenty of coal but imports 100 million tons of crude oil a year and is looking at South African investment and expertise to reduce this amount", Chinese ambassador to South Africa Liu Gui Jin said
earlier.
South Africa, currently China's largest trading partner in Africa, established diplomatic with China in 1998. Trade between the two countries almost doubled between 1990 and 2002, from R9.3-billion to R18.3-billion.
Zuma said that ways of permanently including China in the New Partnership for Africa's Development were being considered in order for China's economic boom to have a positive effect on the rest of the continent.
"The South Africa/China relationship is a critical element in helping both countries, as well as the continent, move forward", he said, adding that strong South-South relations would make for a strong bargaining bloc on the world stage.
"The ill-fated World Trade Organisation round of talks at Cancun indicated that the South needs to remain united and focused in order to achieve its development goals", he said.
Zuma also welcomed renewed commitment from Beijing to participate in African peacekeeping operations, and went on to
ask China for help in the provision of "resources both human and material" to bring about peace.
SouthAfrica.info reporter
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