Boosting SA economy and creating jobs
Chinese businesses have contributed billions in tax revenue
Chinese enterprises’ investment in SA has promoted SA’S economic growth. They do not only provide taxe revenue and employment, but they have also cemented the basis of SA’S economic development.
Since Hegang Group took over SA’S Palabora Mining Company in 2013, it has accrued a total of R2.14bn tax revenue.
After the Industrial and Commercial Bank of China (ICBC) acquired around 20% of the shares in the Standard Bank Group in 2008, it has cumulatively paid tax of around R13.21bn. Chinese power and fibre-optic cable manufacturer Hengtong has paid US$17.4M in taxes since it invested in SA’S Aberdare in 2016; Huawei SA’S tax revenue has exceeded $100m in the past three years; Chinese rolling stock manufacturer CRRC has paid more than R3.4bn since its entry into the SA market in 2012; Hisense SA has accrued tax revenue of $109m since 2014; Gold One Management Services paid a total of R1.105bn in taxes from 2012 to 2017.
Paying taxes is a legal duty that every company is required to perform and an important aspect of social responsibility. While focusing on their own development, Chinese enterprises strictly follow the laws and regulations of SA to actively pay taxes and support the country’s economic development.
Chinese enterprises in SA are mostly labour-intensive industries, which involve a wide range of fields and focus on the localisation of employees.
These enterprises have made it a point to not withdrawing capital, not lay off employees, and not reducing their salaries, thereby alleviating the severe incidence of job losses and unemployment in SA.
Gold One Management Services employs 2,600 local employees in their gold project, and the localisation rate of its employees is 99.9%; the Sandton Skye apartment project and the IFC office building project invested in by China CRI Construction SA created over 2,000 jobs.
CRRC SA directly creates more than 1,000 jobs while maintaining more than 10,000 jobs through the subcontracting, joint venture, and local procurement of upstream and downstream railway industrial chain.
In June 2016, Baic Automobile SA and SA’S Industrial Development Corp made a joint investment and established a factory for the production of passenger vehicles and off-road vehicles in the Coega Development Zone of Nelson Mandela Bay, which created some 13,000 jobs.
China Telecom is committed to contribute for localisation development, as well as using local staff and it has created 1,010 direct jobs for South Africans.
Based on the information from the enterprises, we can see the number of employees who work for Chinese enterprises in SA is more than 32,000, while the number of local employees is about 30,000, and the localisation rate of employees was 93.75% by the end of 2017.