SA, China sign R2bn worth of contracts
1 April 2010
South Africa and China have signed contracts that will see Chinese companies sourcing products such as mohair, bulk wine, wool, frozen fish, copper, manganese, granite blocks, ferrochrome and lobsters worth some R2.3-billion from South Africa.
Trade and Industry Minister Rob Davies and the chairman of the National Committee of the Chinese People's Political Consultative Conference, Jia Qinglin, witnessed the signing of contracts between 26 South African and Chinese companies at the Sheraton Hotel in Pretoria this week.
"The signing of these contracts marks the deepening of mutually beneficial economic relations between South Arica and China," Davies said. "It will also deliver concrete results in the form of new investments and trade partnerships in key areas of opportunities between South African and China."
Promising emerging market
Davies said South Africa, which was working to position itself as the most promising emerging market in the world, combined a well-developed business services support and dynamic investment environment with a number of global competitive advantages and opportunities.
"As an open economy we would welcome greater investment from China. We would encourage partnerships by Chinese companies to support the economic development in South Africa, build local industrial capacity and support the integration of local production value chains."
Bilateral trade between China and South Africa has experienced an upward trend, growing significantly from R23-billion in 2003 to R119.7-billion at the end of 2009.
"Our trade statistics depict a trade surplus in favour of China since 2003, but this declined from R46-billion in 2008 to R22-billion in 2009," Davies said. "This is the second Trade Cooperation Forum aimed at sourcing goods from South Africa in excess of R1.2-billion."
Value-added products
Qinglin said China would continue to expand imports from South Africa, particularly value-added products, so as to increasingly optimise bilateral trade.
"The two countries should deepen two-way investment," Jia said, citing South Africa's expertise in energy development, mineral exploration and manufacturing and China's advantages in textile, garment, electronics, and telecommunications and processing.
China would encourage businesses with strong capacity and good credit to expand investment in South Africa's manufacturing so as to transfer technology, train staff and spur employment, Qinglin added.
SAinfo reporter
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