B&R, the bulwark against rising protectionism
South Africa seeks more exports of value-added products to China: minister
Editor’s Note:
South Africa is China’s biggest trading partner on the African continent. Bilateral trade relations have been continuously expanding over the past year, with this year also marking the 20th anniversary of diplomatic ties between the two countries.
Ahead of the 10th BRICS Summit to be held in South Africa from Wednesday to Friday, Global Times reporter Shen Weiduo (GT) interviewed Charles Manuel (Manuel), Minister Counsellor of Economics at the South African Embassy in Beijing, to seek his opinions on bilateral economic and trade relations as well as Chinese enterprises’ investment.
GT: What is the status quo for bilateral trade relations between China and South Africa? How do you view those relations?
Manuel: Trade between South Africa and China has grown exponentially since the two established bilateral diplomatic relations 20 years ago. The bilateral trade volume jumped from 9.4 billion yuan ($1.38 billion) in 1998 to about 237 billion yuan today.
The bulk of South Africa’s trade with China is focused on commodities and it is our ambition to export more valueadded products to China. We have seen enormous interest and growth of investment of Chinese companies in our manufacturing sector, and Chinese companies are particularly interested in the automotive, renewable energy, electronics and rail sectors. Other new growing points include agriculture, chemicals and the ocean economy.
GT: How do you look at Chinese enterprises’ investment and businesses in South Africa?
Manuel: The relationship between South Africa and China is based on three pillars: friendship, trust and mutual respect. This explains why more than 600 Chinese companies have been set up in South Africa and why we have more than 300,000 Chinese nationals living and working in South Africa. Our expectations are very simple: we want sustainable partnerships with China and expect our Chinese partners to support our industrialization drive as well as our regional integration drive.
GT: What opportunities will the China-proposed Belt and Road (B&R) initiative bring to South Africa?
Manuel: We believe that the B&R initiative is a gamechanger and will revolutionize the way business is done. It is already serving as a catalyst for industrial development and trade in many emerging economies. The B&R initiative will open existing markets, create new markets and can serve as a bulwark against the rising tide of protectionism.