The South African government said on Monday it was aggressively seeking greater foreign investment from China despite fears that this may harm certain sectors within the economy.
”We want greater investment in South Africa,” said deputy foreign affairs minister Aziz Pahad.
He told reporters in Pretoria that where South Africa would lose in certain sectors — the textile and clothing industry — it would gain in others, such as mining, tourism and energy.
”China is developing into a major economic superpower and we need to take advantage of that,” Pahad said.
Since the initiation of economic reforms beginning in 1978, China has become one of the world’s fastest growing economies. Over the past 10 years, its Gross Domestic Product has grown at an average annual rate of nearly 10%.
Spin-offs from this growth have benefited the South African market, Chinese ambassador to South Africa, Liu Gui Jin said.
According to Chinese custom’s figures, South African exports to China in 1998 amounted to $690-million. By the end of 2003 it had grown by 23% to $1 840-million.
”This is South Africa’s biggest increase to any one country,” he said.
Bilateral trade in the first quarter of this year amounted to $1,67-billion, an increase of 66,6% from the same period in 2003.
”When other export markets like the United Kingdom dropped in 2003 by nine percent, South Africa’s exports to China rose by 42%,” Jin said, explaining that any future agreements would be mutually beneficial and far outweighed any negative impact China had on certain sectors.
Deputy President Jacob Zuma will meet his Chinese counterpart, Zeng Qinghong, in Pretoria on Tuesday.
Various agreements pertaining to education, grant aid and co-operation between the SA Chamber of Commerce and Industry and the China Council for Promotion of International Trade will be signed. – Sapa