How SA-China trade reached R544 Billion last year

Despite world economies having been ravaged by the impact of the Covid pandemic, the SA-China trade continued to grow, with the two countries’ trade volume having last year reached R544 billion, according to Small Business Development Minister Stella Ndabeni-Abrahams.

Addressing the occasion on Tuesday at the Chinese embassy in Pretoria to mark the founding of the People’s Republic of China 73 years ago, Ndabeni-Abrahams described the birthday of a nation during the Year of the Water Tiger in China, which traditionally represented strength, bravery and wisdom as “qualities that are especially meaningful in our current global context”.

“China has shown the world how hard work, resilience and determination – all joined together to build a nation that can stand tall amongst the community of nations – to grow and to reap the benefits of economic development and industrialisation.

“In recognition of the symbolism behind the Year of the Water Tiger, we must embrace the wisdom of the tiger, as we move forward in our relations and acknowledge the partnership that has grown and developed, as part of the South Africa-China Comprehensive Strategic Partnership.

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“Within this context, SA and China look forward to celebrating 25 years of diplomatic relations in January 2023,” said Ndabeni-Abrahams.

SA-China Investment

On SA-China investment, Ndabeni-Abrahams said there were “a sizable number of South African companies invested in China in various sectors, with many of the big transactions based on shareholding arrangements”.

She added: “These investments not only drive economic cohesion between our two countries but also bring our people and cultures together.

“Along these same lines, South Africa hopes to see more Chinese companies investing in the South African economy – especially with a view to boosting our local manufacturing and industrialisation efforts.

“We encourage the Chinese government and business community, to support our SMMEs (small, medium and micro enterprises) through joint ventures and skills transfers, given that SMMEs are an important driver of economic growth and development in China.

“We continue to call upon Chinese companies to be brave, and strong and to show wisdom like Water Tigers, by coming to South African shores and recognise the benefits of using our country as a base from where to access the largest emerging single market in the world – the continent of Africa.

“In this regard, the African Continental Free Trade Area provides for improved competitiveness and enhanced regulatory harmonisation towards greater economic integration of the continent.

“South Africa remains a gateway to the continent – has the infrastructure and other services required to support manufacturing and corporate investment, both domestically and the rest of Africa.

“It would be remiss of me if I were not to applaud the Chinese embassy’s efforts – together with the South Africa-China Economic and Trade Association – for hosting a jobs fair in South Africa in April 2022, where 1 000 jobs were offered to South African youth, as part of a further initiative to create 19 000 local jobs over the next three years. “

South Africa, said Ndabeni-Abrahams, was “very pleased with the recent progress that has been made in terms of various infrastructural projects that China is supporting”.

These included the:

Recent visit to South Africa by a team of Chinese experts on the development of small harbours in South Africa – a project forming part of the larger Oceans Economy initiatives in the country, also referred to as Operation Phakisa.

Upcoming launch of the Poverty Alleviation Village pilot project.

Establishment of China-supported vaccine research, development and manufacturing capability in South Africa to combat Covid and other diseases prevalent in developing countries.

In his keynote address, Peoples’ Republic of China ambassador to South Africa, Chen Xiaodong, said: “Since the Communist Party of China (CPC) 18th national congress, the party central committee, with comrade Xi Jinping as the core, has led the Chinese nation to win the battle against poverty – building a moderately prosperous society and embarking on a new journey towards the second centenary goal.

“This is a new journey to promote high-quality development with the people at the centre.

“We have efficiently coordinated the epidemic response and socio-economic development.

“Thus, to the greatest extent possible, we have both safeguarded the life and health of the people and ensured overall economic and social development.

“In recent years, China’s GDP has been growing by 6.6% on an annual basis – contributing over 30% to world economic growth.

“We have eliminated absolute poverty – unseen before in human history.

“This is the new journey featured by green development and innovation.

China has been pushing ahead with its goal to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.

“To bridge the development gap between the North and the South, President Xi Jinping has proposed the Global Development Initiative – announcing a series of programs such as the Global Development and South-South Cooperation Fund.”

brians@citizen.co.za