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 SA signs billions worth of contracts with China

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PosOnderwerp: SA signs billions worth of contracts with China   Mon Apr 05, 2010 10:33 pm

SA signs billions worth of contracts with China
Thursday, 01 April 2010
Twenty-six South African and Chinese companies signed contracts valued at billions of rands in Pretoria on Wednesday, the department trade and industry said.


Minister of Trade and Industry Rob DaviesThe signing ceremony, held at the Sheraton Hotel, was witnessed by Trade and Industry Minister Rob Davies and the chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), Jia Qinglin.

The contracts would see Chinese companies sourcing products such as mohair, bulk wine, wool, frozen fish, copper, manganese, granite blocks, ferro chrome and lobsters from South Africa to the value of R2.3 billion, marking the deepening of mutually beneficial economic relations between the two countries.

Davies said this would also deliver "concrete results" in the form of new investments and trade partnerships in key areas of opportunities between the two countries' products.

"As an open economy we would welcome greater investment from China. We would encourage partnerships by Chinese companies to support the economic development in South Africa, build local industrial capacity and support the integration of local production value chains, he said.

Qinglin said the two countries should deepen two-way investments, citing South Africa's expertise in energy development, mineral exploration and manufacturing and China's advantages in textile, garment, electronics, and telecommunications and processing.

"China will encourage businesses with strong capacity and good credit to expand investment in South Africa's manufacturing so as to transfer technology, train staff and spur employment," he said.

Bilateral trade between China and South Africa has experienced an upward trend since 2002. The total trade between the two countries is R119, 7 billion and grew by two percent in 2009, as compared to R118 billion in 2008.

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