President Jacob Zuma met his Chinese counterpart, Hu Jintao, on Tuesday for talks aimed at broadening the relationship between Beijing and Africa’s biggest economy.
The visit is seen as an opportunity for the two countries to explore ways of expanding their already sizeable trade ties — and also a chance for two emerging powers to solidify their strategic partnership.
Zuma — who visits Beijing and Shanghai during a three-day trip he has called “crucial” — was welcomed by Hu at Beijing’s Great Hall of the People before the two leaders went into talks.
“The talks will surely take the relations between the two countries to greater heights,” Zuma said in a speech to business leaders ahead of his meeting with the Chinese president.
After their talks, the two sides signed an agreement upgrading ties to a “comprehensive strategic partnership” and inked cooperation pacts on mineral resources, rail transport, the environment and other areas.
The China National Nuclear Corporation, which runs the nation’s growing nuclear energy programme, is also in talks to build a nuclear power plant in South Africa, Dow Jones Newswires earlier quoted a company official as saying.
Meanwhile, China’s Vice-Commerce Minister, Gao Hucheng, said Beijing would encourage domestic companies to invest in South Africa’s mining and resources sectors, the agency said.
Bilateral trade — which has been expanding since the establishment of full diplomatic relations in 1998 — last year totalled about $16-billion, according to figures from both countries.
“Trade statistics with China continue to reflect the potential that still exists for expanding the commercial relationship,” the South African Foreign Ministry said before the visit.
Booming economy
Zuma said on Tuesday that the expansion of foreign trade was a way for his country to “improve the quality of life of all South Africans”.
China, which last year overtook the United States to become South Africa’s largest export destination, mainly imports raw materials such as iron ore, as well as iron and steel, to fuel its booming economy.
Beijing also has unveiled a series of major investments since ploughing $5,5-billion into Standard Bank nearly three years ago.
In May, Chinese companies reached deals to build a $217-million cement plant and invest $877-million to take control of a small South African mining company and build a new platinum mine.
South African Trade and Industry Minister Rob Davies on Tuesday told business leaders in Beijing that his country’s exports were too dependent on primary goods and that he hoped Beijing could buy more “value-added” goods.
Zuma, who is accompanied by a number of key ministers, is due to meet Premier Wen Jiabao and other senior Chinese officials on Wednesday. He was due to visit the World Expo in Shanghai on Thursday. – AFP