Ties enhanced by 'China Year in South Africa'

2015 happens to be the "China Year in South Africa", with a special focus on increasing bilateral trade and economic cooperation between the countries. Shanghai municipal commission of commerce is actively implementing the consensus reached between Chinese President Xi Jinping and South African President Jacob Zuma on economic cooperation, deepening the ties between the two countries.

This is evident with the China- South Africa Economic Forum or South Africa-Shanghai China Trade and Investment Cooperation Forum, which will be held on Sept 1 at the Sandton Convention Centre in Johannesburg, South Africa. This forum is part of the Belt and Road Initiative Economic Forum Global series and aims to enhance business opportunities for Chinese and South African businesses in the areas of investment, technology and trade.

The forum is organized in accordance with the overall arrangements of the Ministry of Foreign Affairs and Shanghai municipal people's government to achieve these goals, says Jiang Hongxia, deputy director of Scofcom. "We'll also further enhance the trade and investment cooperation between Shanghai and South Africa, especially between Shanghai and Kwa-Zulu Natal province."

Belt and Road Initiative is the most ambitious plan by the Chinese government to define a new Silk Road. The main focus of the program is emerging markets, and the government has already committed $40 billion to advance trade and investment with target countries, including South Africa. A senior-level government delegation from both countries and over 100 delegates will attend the forum.

The forum also coincides with the inaugural China Homelife and China Machinex exhibitions which will run from Sept 1-3 at the Sandton Convention Centre, Johannesburg. Over 200 premium Chinese companies will be exhibiting products ranging from textiles and garments, home electronics, to building materials and new energy.

Organized by Meorient International Exhibitions, China Homelife and China Machinex are one of the top rated Chinese product sourcing fairs in emerging markets, now with a footprint in nine countries including; Poland, Turkey, Brazil, Jordan, UAE (Dubai), India, Egypt, South Africa and Kazakhstan. Collectively in 2015, the portfolio of shows will bring together over 5,000 exhibitors and approximately 75,000 visitors from the nine countries.

When choosing to bring China Homelife and China Machinex to Africa, Meorient found that South Africa plays an important role as the hub to the African region regarding the import of Chinese products. Chinese export to this region is growing at around 20 percent year-on-year and the Chinese government is keen on further enhancing the trade relations. The two collocated shows will provide a platform for Chinese manufacturers and African buyers to come face to face and do business over three days.

Due to the increasing volume of exports of products from China to Africa, Meorient feels that there is a need to further streamline efficient export buying processes within southern Africa and its surrounds. 2014 saw $15,449,362 worth of exports from China to South Africa.

According to Meorient, China is increasingly playing the role of "lead manufacturer" globally and has the ability to supply a wide range of quality products at very competitive prices. The improving economic situation across Africa is increasing the demand for products. Most African governments have also identified the need and have committed to improving bilateral trade. It's very important that trade platforms such as China Homelife and Machinex are available to take this strategic initiative forward on a practical level, such as making the right buyer meet the right seller.

Chief Operating Officer for Meorient, Binu Pillai feels however that there is still a misperception regarding Chinese products. "Unfortunately there's a misperception about Chinese products regarding their quality. Chinese manufacturers have the ability to manufacture products with different quality based on the buyer's requirement. Many times, orders from the importer are for low quality products which are then sold at a premium price in the local market. Chinese companies are then blamed for the low value for money."

The reality is, China has access to some of the best manufacturing technology and raw materials in the world and the product quality has substantially improved over the past few years. The government focus for next 10 years is on "quality" rather than "quantity".

China Homelife and China Machinex South Africa aim to increase trade relations between China and southern Africa by offering a wide variety of quality products to top decision makers and buyers. The show has eight key product sectors; Hardware and tools, building materials, home electronics and appliances, textiles and garments, furniture, lighting, escalators and elevators as well as Power and Electricity. Meorient can assure that the exhibitors participating in this year's show are some of the best quality products manufactured in China, selected through a quality control process.

(China Daily Africa Weekly 08/28/2015 page21)