Long-term trade prospects remain bright

Although China's imports from South Africa have been negatively affected by falling international commodity prices, the long-term prospects for trade and economic cooperation between the two countries remain bright due to their ever-deepening cooperation, said Zhao Zhongxiu, vice-president and trade professor at the University of International Business and Economics in Beijing.

"The trade relationship between the two countries is still stable and complementary in nature," said Zhao.

Zhao also identified growth potential in sectors including manufacturing, tourism and financial services. He indicated the two countries should extend their cooperation to products such as coal, gas, oil, engineering machinery, machine tools and agriculture machinery, instead of focusing solely on the mining industry.

South African President Jacob Zuma (right) takes part in a ceremony in Pretoria on March 20, 2015 marking the accomplishment of a China-South Africa cooperative project on electric locomotives production. Zhai Jianlan / Xinhua

According to the Ministry of Foreign Affairs, China's major exports to South Africa are electrical appliances, electronic products, textiles and metals, while its principal import is minerals.

Last year, the bilateral trade volume between China and South Africa declined significantly to $46 billion, a 23.66 percent drop year-on-year. China's exports for the same year were $15.8 billion, a slight rise on the $15.7 billion recorded in 2014; imports stood at $30.2 billion, marking a sharp drop on the $44.6 billion recorded in 2014.

Zhao said the drop in international commodity prices since 2011 is responsible for China's falling import figures, rather than cuts in the country's import volume.

"The trade slump is a periodic phenomenon, and commodity prices were too high in the past," he said.

Zhao suggested that South Africa should open up its markets to facilitate foreign investment and trade.

"China's experience shows that economies cannot develop without opening up the market," said Zhao.

He referenced China's express industry, which grew stronger after leading international players such as UPS and FedEx entered the market.

Zhao indicated that countries such as South Africa and Brazil remain overly dependent on single or limited resources, and suggested that South Africa develop a diversified economy similar to the high-tech industry model adopted in northern Europe.

Tian Xuejun, China's ambassador to South Africa, said this year is the first year of the implementation of the outcomes of the Johannesburg Summit of the Forum on China-Africa Cooperation. "In the spirit of wide consultation, joint development and shared benefits, China will unite with all African countries to pursue win-win cooperation and common development, and open a new era of Sino-African relations."

Tian said President Xi Jinping reaffirmed with South Africa's President Jacob Zuma the commitments to strengthening bilateral cooperation in key areas such as the blue economy, production capacity, economic zones, energy, infrastructure development, human resources and finance during his State visit to the country last December.

China is now South Africa's largest trading partner, largest export market and largest source of imports, while South Africa is China's largest trading partner in Africa.

duxiaoying1@chinadaily.com.cn

(China Daily 09/05/2016 page30)