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)
Other Video News
Recent Research Reports
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...
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.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...