By Diana Chiyangwa
Johannesburg South Africa: In preparation for the state visit, by Chinese President Xi Jinping, South Africa, and China held talks on trade and investment in Johannesburg on 10 August 2023. China’s Ministry of Commerce organized a business delegation to South Africa for trade and promotion activities, with the aim of strengthening trade and economic ties between China and South African enterprises.
Minister of Trade, Industry, and Competition Ebrahim Patel said that the talks held on 9 and 10 August in Pretoria with Chinese Minister of Commerce Wang Wentao, have led to significant outcomes to boost trade, investment, and job creation.
The talks were held during an official session of the Joint Economic Committee (JETC) between the two countries and focused on changing the comparisons of trade so that South Africa exports more manufactured and value-added products to China. Two-way trade between the two countries last year was in excess of R900 billion and Chinese investments in South Africa are now close to R200 billion.
The JETC discussion noted the extraordinary progress China had made in green technologies, including electric vehicles. The two Ministers reviewed the progress made in developing Memoranda of Understanding on the green economy, the blue (oceans) economy, digital trade, investment, and Special Economic Zones.
The hybrid event attracted major Chinese importers, representing several industries with interests covering renewable energy, precious minerals, chrome ore, manganese ore, textile, agricultural and aquatic products, and others. China is South Africa’s largest trading partner, and amongst the talks, China agreed to partner South Africa’s efforts to industrialize further and to transition to a greener energy manufacturing economy.
“The partnership with China is not just purchasing agreements, it goes with a range of technical cooperation in support of this agreement. Some of them will be using green technologies, China is one of the largest green producers in the world. In agriculture, to the scope for us to bring technologies where less water is used, technology is used to avoid soil degradation and to address changes in weather patterns,” said Patel
In relation to the broader partnership with China, Minister Patel highlighted that South Africa launched a major satellite capability as part of the Space X launch in the United States and South Africa has put on the capacity for an Agri sect that will send high-resolution pictures to South Africa on how agricultural space where climate change has caused some damages which will guide the country using technologies developing in South, China and else in the world to repair and give rural communities some support.
“Climate change is often put forward simply as a challenge to urban societies but the rural poor communities are one of the greatest potential victims of climate change. So, we must bring the power of technology and innovation to protect livelihood and jobs.” Patel added
During the event of the signing ceremony, Minister Wang Wentao said that the China-South Africa trade and economic cooperation enjoys bright prospects and great potential. China and South Africa will celebrate the 25th anniversary of their diplomatic relations in 2023, which also marks the “Year of South Africa” for BRICS.“
“The MOFCOM-led trade promotion mission to South Africa is here to procure import commodities, a concrete measure to implement the consensus reached by the two presidents,” said Wang Wentao
Present at the signing event ceremony were H.E. Chen Xiaodong, Chinese Ambassador to South Africa, and Mr. Stavros Nicolaou, Member of SA BRICS Business Council, who also addressed the event. The JETC talks included the two Ambassadors, Commissioner Edward Kieswetter of SARS and Ayabonga Cawe of ITAC, Deputy Ministers Gina and Majola, and a senior Chinese delegation.
About twenty Chinese enterprises, including China Poly Group, China Chengtong, China National Agricultural Development Group, BYD, and CATL, participated in the event. The parties agreed to a stepped-up set of activities in the next 6 months to boost economic relations and finalize and implement agreed measures.
