May 21, 2008
China adresses imbalances as trade with SA soarsBack
© Reuse this As China and South Africa celebrated ten years of diplomatic ties, trade cooperation was discussed, and a focus on addressing bilateral trade imbalances was emphasised.
"That poses some very significant challenges to us, to narrow the gap, and to increase exports of higher value-added products," Davies stated. Some of the potential products identified for export to China included motor vehicles and components, steel products, platinum products, various agro-industrial products as well as services such as financial services.
Former vice foreign Minister of China Ji Peiding said that it was inevitable that some undesirable elements emerge in the rapid growth of China-Africa cooperation.
"There are some bilateral trade imbalances - some African industries are challenged by Chinese imports, and some Chinese companies have failed to meet environmental and labour standards. To solve these problems the Chinese government has worked earnestly with the African side and taken proper measures to address them," Peiding said.
In an effort to balance China Africa trade, China had given zero-tariff treatment to some African export commodities, and set up a China-Africa Development Fund for capacity building in Africa.
The Chinese government had also "limited its export to South Africa to help improve the competitive edge of relevant industries in South Africa". The most notable was the limit of textile imports from China into South Africa. "The clothing and textile quota agreement has been significant and created a breathing space for restructure of the South African industry," reiterated Davies.
Achievements in Sino-African relations were said to have reached new heights through the ICBC-Standard Bank deal, which was an investment of some $5,46-billion.
"Such mutual investment has injected new vitality into our economies," affirmed Peiding. And indeed, Davies observed that in the current global economic downturn, South-South, or China-Africa relations, offered a buffer against the global financial crisis. It was no longer the case that "when the US caught a cold the rest of us got double pneumonia", he said.
China's growth was estimated by the International Monetary Fund to decline from 11,4%, to "a still impressive" 9,3%.
Peiding stated that China was willing to share its development experience with African countries. "The mature technologies and equipment that China has developed over the past decades are more suitable to the conditions of developing countries, and more economical and applicable for African countries," he added.
"There are some people accusing China of using its cooperation with Africa to plunder African energy and mineral resources. China will never accept such unwarranted accusations, and nor will African countries," stated Peiding, and noted the more than 900 infrastructure and public welfare projects on the African continent that China had been involved in.
"China-Africa cooperation creates conditions to transform our resources and technological advantages into development advantages, which is what win-win cooperation is all about," Peiding remarked.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Video News
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...