Latest news with #SouthAfrica-China
IOL News
18-07-2025
- Business
- IOL News
Mashatile calls for increased Chinese investment as trade deficit with China surges
Deputy President Shipokosa Paulus Mashatile delivers a keynote address at the South Africa-China Investment Forum, as part of his working visit to the People's Republic of China. Banele Ginidza Deputy President Paul Mashatile has issued a compelling invitation to Chinese corporations, advocating for increased investment in South Africa. Speaking at the South Africa-China Investment Forum in Beijing on Thursday, Mashatile highlighted a significant shift in the trade dynamics between the two nations, revealing that the trade deficit with China has escalated dramatically from less than $1 billion in the period between 1988 and 2000 to an alarming $9.71bn by 2023. Mashatile said ddressing these challenges necessitated expanding South Africa's export portfolio, encouraging value-added exports, and establishing a more balanced trade relationship. "We need to develop a more coordinated and strategic approach. We need to address challenges such as access to the Chinese market due to factors like tariff and non-tariff barriers, distance, and competition from other countries," Mashatile said. The essence of this trade imbalance, as Mashatile pointed out, stems from the current nature of the economic relationship where South Africa primarily exports raw materials and minerals while predominantly importing manufactured and capital goods from China. This disparity has raised concerns regarding the sustainability of such a model, particularly as both South Africa and China navigate increasing tariff barriers imposed by the United States. "As South Africa-China relations continue to deepen, new opportunities emerge for Chinese businesses seeking to enter the South African market, particularly in sectors such as renewable energy, green hydrogen, energy storage, infrastructure and logistics, our Special Economic Zones (SEZs), pharmaceuticals and medical devices, and the beneficiation of critical minerals, as well as in the digital economy," he said. Mashatile said South Africa sought to attract investments to increase greenfield investments, infrastructure investments, unlock funding or financial support, partnerships with SOEs, technology transfer and innovation partnerships, investments in SEZs and industrial parks, black industrialist partnerships, as well as capacity and technical assistance for SEZs. "Our SEZs offer an internationally competitive value proposition for the country with an attractive suite of incentives," Mashatile said. "They are located across the country, and each SEZ has unique offerings for investors, some of which could include tax relief, reduced corporate rate taxes and reduced costs for key inputs such as land, water and electricity." Mashatile highlighted the infrastructure investment plan as being in place to drive a range of projects in energy, water and sanitation, transport, digital infrastructure, human settlements, and agriculture and agro-processing. "The plan is supported by an Infrastructure Fund, offering investment opportunities in water development and irrigation projects across nine provinces, a road network expansion, a rehabilitation and maintenance program for construction companies, and high-demand spectrum," he said. Mashatile said South Africa's mineral exports, agricultural commodities, and manufactured items have achieved significant penetration in the Chinese market, aided by a steady flow of investment from Chinese companies since the announcement of President Cyril Ramaphosa's investment mobilisation drive. He said some of the existing partnerships included a major significant investment by the Industrial and Commercial Bank of China (ICBC), which purchased a 20% stake in the assets and earnings of Standard Bank for $5.5bn. Another major Chinese electronics manufacturer, Hi-Sense, entered the South African market in 1997. In 2013, the company established an industrial park. Mashatile cited other Chinese flagship companies such as Zhong Xing Communications (ZTE) and Huawei Technologies that were also expanding their presence in South Africa. "Over the last decade, 48 Chinese companies invested in South Africa with a capital investment of over $11.69bn," he said. BUSINESS REPORT
The South African
14-07-2025
- Business
- The South African
Paul Mashatile takes John Steenhuisen on working visit to China
Deputy President Paul Mashatile is expected to embark on a Working Visit to the People's Republic of China on Monday. He will be accompanied by Deputy Minister of International Relations and Cooperation, Thandi Moraka; Minister of Small Business Development, Stella Ndabeni-Abrahams; Tourism Minister Patricia de Lille; Minister of Trade, Industry and Competition, Parks Tau; Minister of Water and Sanitation, Pemmy Majodina and Agriculture Minister John Steenhuisen. While there, Mashatile will participate in the China International Supply Chain Expo (CISCE). 'In its third year, CISCE is the world's first national-level expo dedicated to global supply chains. It is hosted under the auspices of the Chinese Central Government and the China Council for the Promotion of International Trade [CCPIT]. 'This high-level participation by the Deputy President and the South African Delegation is a pivotal opportunity to advance the South Africa-China All-Round Strategic Cooperative Partnership in the New Era. It also reinforces South Africa's position as a gateway to Sub-Saharan Africa for trade, investment, and industrial cooperation,' the Presidency said in a statement. South Africa has been accorded Guest Country status for the expo under the theme 'South Africa: Your Pathway to Supply Chain Resilience'. Promoting strategic sectors such as renewable energy, logistics, pharmaceuticals, mineral beneficiation, and the digital economy Showcasing a robust pipeline of investable projects to attract targeted Chinese investment, particularly into Special Economic Zones (SEZs) and critical infrastructure Enhancing bilateral collaboration on clean technologies, digital skills development, and industrial standards Advancing South Africa's objectives for supply chain resilience, accelerated industrialisation, and deeper integration within the African Continental Free Trade Area (AfCFTA) framework 'In addition, the visit will include a dedicated bilateral programme aligned with the Comprehensive Strategic Partnership (CSP) and the Ten-Year Strategic Programme of Cooperation (2020-2029) between South Africa and China, with a particular emphasis on Chapter Two on Mutual Beneficial Economic Cooperation and Trade. 'The visit is also part of the evolving strategic trajectory of the South Africa-China relationship and reaffirms both countries' commitment to deepening mutual cooperation in support of inclusive economic growth and sustainable development,' the Presidency's statement read. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
13-06-2025
- Business
- The Citizen
Nzimande signs letter of intent in China to boost AI in SA
In October last year, Communications Minister Solly Malatsi said AI could be a game changer for South Africa. Minister of Science, Technology and Innovation Dr Blade Nzimande has signed a letter of intent with the aim of focusing on information and communication technologies with a specific emphasis on Artificial Intelligence (AI) research and innovation. Minister Nzimande recently led a delegation in a high-level engagement with Will Meng, CEO of Huawei South Africa, and executives at the company's headquarters in Shenzhen, China. China and South Africa Emphasising the importance of South Africa-China cooperation, Nzimande stated that 'the signing of this Letter of Intent further solidifies' the long-standing relationship between South Africa and China. 'Most fundamentally, this Letter of Intent gives much-needed impetus to the progressive agenda of building a global political and economic order that promotes the equitable development of countries, particularly from the Global South, and to contribute to the betterment of all humanity.' The strengthening of relations comes just days after a successful Belt and Road Science and Technology Conference in Chengdu, China, and following a highly productive bilateral meeting between Minister Nzimande and China's Minister of Science and Technology Yin Hejun, which included a Letter of Intent on AI. Picture: Department of Science, Technology and Innovation ALSO READ: Eskom launches AI chatbot 'Alfred' to expedite fault reporting AI a 'game changer' In October last year, Communications Minister Solly Malatsi said AI could be a game changer for South Africa. The opportunities inherent in the use of AI in Africa can be viewed from several perspectives, including the role it will play in bringing cutting-edge healthcare to more people, especially those who previously did not have access to these. AI's role also extends to advancing food security, addressing environmental and climate-related challenges that affect agricultural productivity and livelihoods, and potentially helping to power economic growth. Ethical use Malatsi said AI is unavoidable, and South Africa should not be lagging. 'It's unavoidable in terms of AI, just in terms of the global impact it's making, and also the fact that this is where the presence of technology is, and I think we need to embrace it'. Malatsi said the key issue is the ethical use of AI. ALSO READ: AI agents to enhance interaction with computers, Microsoft says
IOL News
04-06-2025
- Politics
- IOL News
Cultural exchange between South Africa and China: A focus on growth and opportunity
Unlocking the potential of South Africa-China relations through cultural exchange Explore the rich landscape of South Africa-China relations as the Chinese Consulate in Durban reveals plans for deeper cultural exchanges and educational opportunities for local students. The Chinese Consulate in Durban, South Africa has revealed plans for deeper cultural exchanges and educational opportunities for local students. In an exclusive, yet candid interview with the Daily News this week, Li Zhigong, the Chinese Consul in Durban said these initiatives are set to foster understanding and collaboration between the two countries. As both nation continued to seek to strengthen their ties, cultural exchange emerged in the conversation as a pivotal tool for fostering understanding and collaboration. Li elaborated on how the Chinese Consulate in Durban promotes cultural exchange and mutual understanding between the two nations. He explained that the consulate actively collaborates with local institutions and the Confucius Institute at Durban University of Technology in the region to bring Chinese culture to South Africa while also celebrating South African traditions. "This dual approach enhances respect and comprehension between the two countries," he said. The Consulate has organised a variety of events aimed at bridging cultural divides. Festivals, exhibitions, and film screenings are among the many initiatives that have enriched Durban's cultural landscape. According to Li, Notable events include the vibrant celebrations of Chinese New Year, the Mid-Autumn Festival, and the National Day Reception. "These gatherings serve not only to celebrate Chinese heritage but also to foster dialogue and interaction with local communities," he explained. Furthermore, the consulate has supported various groups from China to present Chinese Pictures and Films Shows, calligraphy workshops, and traditional dance performances. One particularly exciting initiative on the horizon is the "China Cultural Camp" hosted by the Shude Chinese School in Durban. Set to take place in the latter half of this year, this camp will welcome dozens of teachers from China, offering local children and anyone interested in Chinese culture a unique opportunity to engage and partake in an enriching cultural experience. Education remains another cornerstone of the cultural exchange between South Africa and China. Li detailed how South African students and scholars can access scholarships or exchange programmes in China. "Applications can be made through the Chinese Embassy's scholarship platform or via the Confucius Institute for both language and degree scholarships. These comprehensive programs cover tuition, accommodation, and living stipends. The Consulate consistently works to ensure that the application process is transparent and fair, providing guidance and liaising with educational institutions to facilitate student access," he said. As both countries continue to navigate their relationship, cultural exchanges play a vital role in promoting cooperation, understanding, and a shared vision for the future. "Investment in cultural exchanges is an investment in our future partnerships,' concluded Li.
Daily Maverick
08-05-2025
- Business
- Daily Maverick
‘I've met the Chinese ambassador over MEC Meyer's ban' – Western Cape Premier Winde
South Africa-China relations once again came under the spotlight in the Western Cape Legislature as the fallout over the banning from China of MEC Ivan Meyer continues. Western Cape Premier Alan Winde says he has met both MEC Ivan Meyer and Chinese officials over the ongoing fallout in the provincial legislature over Meyer's ban from visiting China, after a trip to Taiwan. Winde revealed this during a debate in the legislature on Thursday, 8 May on Meyer's ban, which dates back to January. Two weeks ago, the African National Congress (ANC) staged a walkout in support of its caucus member Rachel Windgovel, who was asked to leave the sitting after she refused to apologise for claiming Meyer's trip to Taiwan 'betrayed' South Africa. Meyer was not physically present in the chamber on Thursday and has remained silent on the issue. It came up during a mini-debate, after ANC leader of the opposition Khalid Sayed asked if Meyer's trip potentially jeopardised trade relations with China. Winde told members of the legislature: 'I have had a meeting with the Chinese ambassador on this specific subject, also with the consul general.' He also said he had discussed the issue with Meyer, who serves as MEC of Agriculture, Economic Development and Tourism. Winde did not go into any further details. Winde said Meyer's trip was 'not an official engagement conducted on behalf of the Western Cape government or any of its entities'. Winde continued, 'It was conducted strictly in his personal and private capacity and not as a member of this government… If the honourable member probably realises that, it was the ANC that actually made his father a consul general in that country, and, of course, then you find personal relationships.' Meyer's father, Piet Meyer, was a member of the Western Cape executive who also served as an ambassador to Taiwan. He died in 2020. Trade relations During the debate, Winde said, 'We deeply value our ties and friendship with the People's Republic of China, especially our long-standing regional partnership with Shandong province.' He said the partnership with China was the first of its kind for an SA province. 'Our relations with China have benefited the Western Cape not only in terms of trade and investment, but also in terms of sustainable development, innovation and entrepreneurship at large.' The ANC's Sayed said, 'The recent visit to Taiwan by MEC Meyer does, in fact, run the risk of jeopardising and straining the Western Cape's and indeed South Africa's vital diplomatic trade and investment relations with the People's Republic of China, especially considering South Africa's official foreign policy position regarding the One China policy'. In response, the DA's Bennedicta van Minnen said, referring to Sayed: 'Just eight days ago, the honourable member proudly showed footage on X of himself engaging with Russian representatives, recklessly risking our trade relations with Europe and the United States.' Personal vs public roles During the debate, the Good party's Brett Herron said there was a fundamental principle: 'When you are an elected official, the lines between your personal and public life are inevitably blurred. This is not just a matter of perception; it is a matter of responsibility.' Herron said Meyer, in his government role, held a position of trust. 'His foremost duty is to protect and advance the economic interests of this province. So how can that duty be effectively carried out if he is personally banned from entering China, our largest trading partner in Asia?' 'If the MEC visited Taiwan in a personal capacity, the question of what exactly happened, or how egregious was his behaviour, to lead to a ban? On the other hand, if he met with Taiwanese officials, the trip cannot fall under the banner of a personal visit.' Herron continued: 'Let us be clear: China is not just another market. It is a key player in our province's export strategy, tourism potential and foreign investment pipeline. Being banned from engaging directly with Chinese officials and business representatives places MEC Meyer in a compromised position. It limits his ability to build relationships, attract investment and promote trade, all of which are critical functions of his portfolio.' Ferlon Christians from the African Christian Democratic Party (ACDP) questioned why the ANC wanted to have a political debate on the issue, as the trip had been in Meyer's private capacity. 'How can we … tell members you cannot go to China, you cannot go to America because you're a member of the house, or you are the executive, you cannot do that?' he said. The controversy dates back to January 2025, following a Daily Maverick report about Meyer and his family being barred by the Chinese embassy in Pretoria from visiting China, Hong Kong and Macao. The embassy said at the time that it regarded Meyer's visit as 'blatantly violating' Beijing's One China policy. The issue emerged as South Africa instructed the Taiwan representative office to vacate its Pretoria premises and relocate to another city. Beijing rigorously applies a One China policy, insisting that any country that recognises China must not in any way give diplomatic recognition to Taiwan. At the end of 1997, South Africa switched recognition from Taiwan to China, but formally agreed to allow Taiwan to continue an official presence in Pretoria under the name 'Taipei Liaison Office'. DM
