Patel: SA to partner with China

[Nod]

Source: News24

In the framework agreement for trade signed a few weeks ago during President Jacob Zuma’s state visit to China, China committed itself to mineral enrichment in South Africa.

On Wednesday at a breakfast seminar held by the Progressive Business Forum at the ANC’s National General Council meeting in Durban, Ebrahim Patel, Minister of Economic Development, said that South Africa would in the coming months become involved in several discussions with Chinese industrialists and government representatives.

He said this would offer South African entrepreneurs several opportunities to set up tangible industries in this country in partnership with Chinese companies.

The Chinese government committed itself to invest in South Africa, and Chinese companies would establish manufacturing operations here in partnership with local players.

In the agreement South Africa and China committed themselves to mineral enrichment at source.

This is a very important breakthrough for all of us, because it recognises that we will have to create more jobs in developing our mineral resources.

What China wants is security of supply.

In turn, South Africa wants to create economic development opportunities by providing a safe supply, said Patel.

This announcement could lead to significant investments flowing in for manufacturing plants in South Africa’s iron, coal, platinum, manganese and chrome industries.

But Patel pointed out that governments could not tackle these industries alone. The role of the private sector would be decisive in this regard.

 

[blunomore]

The Dalai Lama can just kiss that visa goodbye !

 

[sox63]

I can really never fault more foreign investment in the country, even from the likes of China.

Off topic: I see the Asian continent is positioning itself as our biggest trading partner in the near future. The Chinese and the Indians have been leading the charge and now Japan is making a small entrance in the form of the DD takeover.

 

[blunomore]

I can really never fault more foreign investment in the country, even from the likes of China.

Off topic: I see the Asian continent is positioning itself as our biggest trading partner in the near future. The Chinese and the Indians have been leading the charge and now Japan is making a small entrance in the form of the DD takeover.

Foreign investment is not the last word, sox. We need to get more involved in beneficiation of our own resources ... more industrialised.

 

[sox63]

Foreign investment is not the last word, sox. We need to get more involved in beneficiation of our own resources ... more industrialised.

With our particular set of socio economic circumstances, I feel perhaps industrialisation is not really the way to go. Not enough skills in the country and more importantly other countries can do it better and far cheaper than we could. Its a question of knowing where we compete well in the global economy, IMO.

 

[blunomore]

With our particular set of socio economic circumstances, I feel perhaps industrialisation is not really the way to go. Not enough skills in the country and more importantly other countries can do it better and far cheaper than we could. Its a question of knowing where we compete well in the global economy, IMO.

Not the answer in the long run.

A country gets raped when it simply gives up its minerals to the 'highest bidder'. They take it, manufacture something and sell it at such a high profit.

Furthermore, 'we do not have skills' is not a good enough answer. What you do not have, you need to develop.

 

[w1z4rd]

I guess China is happy to partner with countries that wont complain about its terrible human rights record. As South Africa is trying to head down the same road China is heading.

I wish we had countries like Sweden, Norway and Finland investing in us.. but we are too corrupt and their standards are too high

 

[sox63]

Not the answer in the long run.

A country gets raped when it simply gives up its minerals to the 'highest bidder'. They take it, manufacture something and sell it at such a high profit.

Furthermore, 'we do not have skills' is not a good enough answer. What you do not have, you need to develop.

Sadly, current market investors do not see it that way. World markets are geared to seeing a quick return on their investments. And I'm sure you would agree that the time frame for developing an Industrialised SA will be anything but quick. Nevermind the costs involved in developing SA in that direction. We would be spending a crap load of money on development with very little coming into the till, for lack of a better term...

 

[blunomore]

Sadly, current market investors do not see it that way. World markets are geared to seeing a quick return on their investments. And I'm sure you would agree that the time frame for developing an Industrialised SA will be anything but quick. Nevermind the costs involved in developing SA in that direction. We would be spending a crap load of money on development with very little coming into the till, for lack of a better term...

And that is why Africa is in the state it is in .... we will never catch up with Asia .... and to think there was a time that some African countries outperformed some Asian countries

 

[sox63]

And that is why Africa is in the state it is in .... we will never catch up with Asia .... and to think there was a time that some African countries outperformed some Asian countries

But could SA really compete? I mean with the dirt cheap manufacturing in Asia, China in particular, IMO we could not compete with those costs. And lets not even talk of the "SA will just have to produce better quality" approach. The Americans and Europeans were not exaclty producing crap when they outsourced manufacturing to China, it made more sense to the bottom line.

 

[McSack]

But could SA really compete? I mean with the dirt cheap manufacturing in Asia, China in particular, IMO we could not compete with those costs. And lets not even talk of the "SA will just have to produce better quality" approach. The Americans and Europeans were not exaclty producing crap when they outsourced manufacturing to China, it made more sense to the bottom line.

If we take a look at the US current account deficit right now it seems that wasn't the best of ideas at the time . For sure the problems they are experiencing are due to a few more complex issues, but the import / export ratio has got to be a massivecontributor

[edit /In any case, how would we be competing if all that's happening is we are being being raped for our already dwindling resources ?]

 

[dlk001]

Foreign investment is not the last word, sox. We need to get more involved in beneficiation of our own resources ... more industrialised.

We really need to invest more into downstream beneficiation. If we do not have skills, then government must enforce our partners (China etc) to develop the skills.

 

[Arko2]

How about Angola? The workers refused working over weekends. So China send their workers to get on with the job. I mean 1000 Chinese will fit in two Jumbos.

 

[LazyLion]

haha... I actually think this is good news... the Chinese can teach our local lazy boys how to work hard for a change and what the real business priorities are.

 

[Palimino]

With our particular set of socio economic circumstances, I feel perhaps industrialisation is not really the way to go. Not enough skills in the country and more importantly other countries can do it better and far cheaper than we could. Its a question of knowing where we compete well in the global economy, IMO.

With respect to mining in particular – if we don’t have the skills, leave the stuff in the ground. It’s been there for billions of years and will stay there for billions of years longer. We can do that – it belongs to us. It’s a SA’n legacy. Once it’s gone, it’s gone. But no, bling-crazed ministers only see the short term. Sell the concessions to international consortiums who export the raw product, manufacture goods and flog it back to SA. What staggering genius!

 

[DigitalSoldier]

How about Angola? The workers refused working over weekends. So China send their workers to get on with the job. I mean 1000 Chinese will fit in two Jumbos.

lol!

can you imagine the South Africans going on strike to "cripple the economy" and China just flies in a few Chinese and the poor South Africans will be out of a job.

 

[blunomore]

We really need to invest more into downstream beneficiation. If we do not have skills, then government must enforce our partners (China etc) to develop the skills.

But ............................. t'is what I said.

haha... I actually think this is good news... the Chinese can teach our local lazy boys how to work hard for a change and what the real business priorities are.

The Chinese are not here to teach us anything Gary ... they want resources and they can get it here cheaply.

 

[Palimino]

But no, bling-crazed ministers only see the short term. Sell the concessions to international consortiums who export the raw product, manufacture goods and flog it back to SA. What staggering genius!

Whoop-de-doo! No more complaining from the poor overburdened sodding taxpayer. We can sell the country a piece at a time until Jesus comes. I can pay lobolo for 30 wives. They can all have BMW’s colour coordinated to their outfits as accessories and unlimited credit cards. I can have 200 children in private schools and set them all up in business. I can get a new Merc. everytime the ashtrays are full. <eyes cross with greed>

 

[Balstrome]

lol!

can you imagine the South Africans going on strike to "cripple the economy" and China just flies in a few Chinese and the poor South Africans will be out of a job.

Easy, just kill them, we have de skillz to do dis