China, SouthAfrica intergovernmental meet held in Beijing
December 4, 2014, 7:15 am

flanked by seven South African Ministers, including Finance Minister Nhlanhla Nene, Foreign Minister Maite Nkoana-Mashabane and Trade Minister Rob Davies met members of the Chinese Cabinet headed by Premier Li Keqiang in Beijing on 4 December 2014 [GCIS]

Zuma on a state visit to China from 4–5 December was flanked by seven South African Ministers, including Finance Minister Nhlanhla Nene, Foreign Minister Maite Nkoana-Mashabane and Trade Minister Rob Davies. This is Zuma’s first visit to China since his second term re-election in May.

“One of the major objectives of the State Visit is to ensure that our relations with China remain central to realising our developmental agenda through our foreign policy,” said Zuma ahead of his arrival in Beijing on Wednesday.

The two sides are expected to sign a raft of deals in agriculture, environmental affairs, trade and industry as well as finance.

Zuma’s high-powered delegation to Beijing also includes South African business heads, who will attend the South Africa-China Business Forum on Friday in Beijing, aimed at expanding trade and investment ties between South Africa and China.

“It is expected that approximately 150 Chinese enterprises will attend the business forum. The expectation is that numerous deals will be concluded as a result of the interaction,” said South African Trade Minister Rob Davies.

China is South Africa’s largest trade partner. However, contrary to expectations, China’s Commerce Ministry data shows direct investment between the two countries has declined significantly.

China invested $54 million in South Africa in 2013, almost 70 per cent less than in the previous year. South Africa invested close to $13 million in China, nearly 50 per cent less than 2012.

Zuma is expected to discuss increasing Chinese investment in South Africa during his meeting with his Chinese counterpart Xi Jinping. The two leaders had met last month during the G20 Summit in Australia and in July during the 6th BRICS Summit in Brazil where the group of five leading emerging economies scored with the announcement of a new development Bank and a $100 billion currency reserve arrangement.

Trade between South Africa and China grew from $11 billion in 2008 to $24 billion dollars in 2013.

During Chinese President Xi Jinping’s State visit to South Africs, 2014 was declared year of South Africa in China and 2015 will be the Year of China in South Africa.

South Africa, one of Africa’s largest economies alongwith Nigeria, has become an increasingly important port of call for China as a gateway to the continent.

China and South Africa have also boosted cooperation in recent years within the BRICS bloc, fueled by frustration with a lack of participation in global governance, particularly in the World Bank and International Monetary Fund.

In 2011, South Africa joined to give the BRICS a broader geographic representation. South Africa will establish an African regional center for the newly formed $100 BRICS bank.

“South Africa sees China as a key partner in the implementation of some of the infrastructure and development plans on the continent. China regards South Africa as a key partner in advancing its relations with the African continent,” said Foreign Minister Maite Nkoana-Mashabane ahead of Thursday’s meet.

South African and Chinese leaders will also discuss the security situation of the African continent with possible Chinese assistance being sought on peaceful missions that South Africa is involved in, including request for support of the African Capacity to Respond to Immediate Crisis (ACIRIC) process.

TBP