Foreign and Military Affairs

China, S. Africa ink deals on trade, energy

(China Daily)
Updated: 2010-11-19 08:05

CAPE TOWN, South Africa - China and South Africa inked a series of energy and trade deals on Wednesday during Vice-President Xi Jinping's three-day visit to the nation with Africa's largest economy.

The four inter-governmental agreements were announced during a bilateral trade commission co-chaired by Xi and South African Deputy President Kgalema Motlanthe.

According to the Foreign Ministry, the documents covered cooperation in energy, trade statistics collection and analysis, banking surveillance and Chinese enterprises' involvement in South Africa's commonweal.

No monetary details of the agreements were released.

South Africa has also signed a deal with China's Yingli Solar to build a $435 million manufacturing plant with a local partner, a senior government official said.

Yingli will start building the plant within 12 months, said the source.

Motlanthe said the help of countries including China is vital for South Africa's new economic growth path, which aims to create millions of jobs, mainly in the private sector.

South Africa has seen China as a model of state action in the economy, with Pretoria hoping to join it in the BRIC - Brazil, Russia, India and China - a group of fast emerging economies.

"For the growth path to be a success we require the support of partners such as China," Motlanthe told reporters.

"The Chinese government undertook (encouraging) more imports from South Africa, especially value-added products, and will urge Chinese companies to invest in infrastructure development, automotive manufacturing, energy and information and communication technology," Motlanthe said in a statement.

"We see the future destiny of our two countries as inextricably linked with the African continent."

China last year overtook the United States to become South Africa's largest export destination. Trade between the two countries last year totaled some $16 billion.

South Africa exports about $5.5 billion a year in minerals to China, while it has been increasingly a destination for Chinese foreign direct investment.

In August, South African President Jacob Zuma visited Beijing, signing a slate of cooperation deals on mineral resources, investment in railways, power transmission, construction, mining and nuclear power.

Xi is also scheduled to visit Angola and Botswana later.

Agencies - China Daily