Relationship feted in words and in silence

South African President welcomes further Chinese investment

The rude health of China's relationship with South Africa was made clear in Beijing on Dec 5 through both rousing words and one poignant silence.

"The state visit to China has been very successful," President Jacob Zuma said at the South Africa-China Business Forum. "The fruitful discussions with President Xi Jinping and Premier Li Keqiang reaffirmed the warm and wonderful relations between South Africa and China."

The silence came in the form of a tribute at the beginning of the forum to mark the first anniversary of the death of South Africa's founding president Nelson Mandela.

In the keynote speech, Zuma paid tribute to Mandela, saying his contribution and that of the ruling African National Congress laid a firm foundation for the new and democratic South Africa.

The country would not waiver in its efforts to increase annual economic growth to 5 percent over the next five years, he said.

Trade between China and South Africa was worth more than 270 billion rand ($24 billion) last year.

"As we work toward an ambitious target of 5 percent growth by 2019 in South Africa, we believe we have laid a sound economic foundation, which makes our country ready to advance an economic partnership with China in the pursuit of inclusive growth and job creation," Zuma said.

Cooperation with China has helped South Africa progress, and the two have agreed to work more closely together, he said, in particular by signing the Five-to-10-Year Framework on Cooperation. He encouraged further Chinese investment in key areas such as mineral resources, improving industrial capacity and improving the agro-processing and energy sectors, in particular in regards to nuclear energy cooperation.

"We regard the memorandum of understanding on cooperation between the China National Nuclear Corp and the Nuclear Energy Corp of South Africa as a mechanism which will enhance the mutual exchange of information, best practices and lessons learned in the nuclear energy sector, which will also encourage and identify additional opportunities for cooperation."

To improve the attractiveness to foreign investment, Zuma said, South Africa has proposed building a special economic zone. China has many years of experience in the development of such zones, and South Africa hopes it can help in this regard.

"President Xi has indicated China's readiness to cooperate with us in this area. We have a package of support measures aimed at promoting industrialization in general and the development of new industrial hubs."

Zuma also sought collaboration as his country embarks on promoting Operation Phakisa, inspired by China's marine economy development exercise. The aim is to extract maximum benefit from the economic potential offered by the oceans.

Marine transport, offshore oil and gas exploration, aquaculture, marine protection services and ocean governance are some of the areas Zuma is interested in, and he said he believes China's expertise, scientific research and development of technology can help.

The ocean has the potential to contribute about 177 billion rand and create up to one million direct jobs, he said.

In the financial realm, the BRICS Development Bank presents a good opportunity for South Africa, Zuma said. He said he expects an early start to the African Regional Center of the South African BRICS Development Bank.

Zuma said he is happy to see more and more Chinese choose South Africa as a tourist destination. China became the country's fourth-largest overseas tourist market, with 96,900 Chinese tourists making it their first stop on overseas tours last year.

He also expressed his gratitude to China for the role it played in supporting Africa to combat the Ebola epidemic by providing more than 1 billion rand in aid.

"This means that China shares our view that Ebola is not an African problem but a global challenge that requires a serious response by the world at large."

The forum was hosted by South Africa's Department of Trade and Industry and China's Ministry of Commerce as well as the state-owned Assets Supervision and Administration Commission of the State Council, which is the equivalent of the Department of Public Enterprises in South Africa.

More than 100 South African business leaders who accompanied Zuma on his visit to China, as well as about 150 Chinese business people, took part in the forum. Ma Zehua, chairman of the BRICS Business Council (China) says China and South Africa should work more closely in four areas in particular: trade, infrastructure, finance and people-to-people exchanges.

Industrial and commercial circles of both countries should push for business visa policies to be eased to improve business communications, he says. They should work to resolve trade disputes, reduce trade barriers and help both parties reduce costs and contribute to a healthy trading environment.

"In the infrastructure area, Chinese companies would like to share our advanced technologies and experience, and to take part in the infrastructure projects of the North-South economic corridor of Africa, to help promote the network building of the Africa region and release economic vitality."

In the financial sector, Chinese companies should give advice and support the setting up of development banks and other financial collaboration between two countries, he says.

CSR Corp Ltd of China and China CNR Corp Ltd signed an export deal for vehicles in March that provides more for than 60 percent of components and parts sold in Africa to be made and assembled in South Africa, he says. The two companies will also transfer technology to improve the manufacturing and maintenance abilities of South Africa's automotive industry.

Huang Shuhe, vice-minister of the state-owned Assets Supervision and Administration Commission, says China and South Africa have entered into many agreements to help state-owned companies work with counterparts in each of the countries.

"The willingness on both sides to work together is increasing, and the areas and the degree of collaboration will also increase."

Contact the writers through liuhongjie@chinadaily.com.cn

(China Daily Africa Weekly 12/12/2014 page19)