May 21, 2008
China adresses imbalances as trade with SA soarsBack
Africa|Components|ICBC-Standard Bank|Industrial|Platinum|Projects|Resources|Africa|China|South Africa|United States|Agro-industrial Products|Building|Energy|Equipment|Financial Services|Higher Value-added Products|Platinum Products|Potential Products|Products|Services|Steel|Steel Products|Pneumonia|China-Africa Development Fund|Chinese Government|Environmental|Infrastructure|Ji Peiding|Rob Davies|China Africa
© 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)
Updated 5 minutes ago South African specialist mine detection and mine protected vehicle company DCD Protected Mobility unveiled on Thursday its latest product, the Oribi multirole utility truck. This is a joint development with another South African company, vehicle customising...
Updated 1 hour 21 minutes ago South Africa's rand weakened against the dollar on Thursday, falling to a 7-month low after respected Reserve Bank Governor Gill Marcus said she would not renew her contract when her five year term ends in November. Government bonds weakened alongside the currency,...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...