II. China and South Africa: Partners in Cooperation
I am gratified to have witnessed during my tenure in this great rainbow nation the rapid yet sustained growth of mutually beneficial cooperation between our two countries. Thanks to the concerted efforts on both sides, we have well exemplified the true meaning of "strategic partnership". Despite the short time span since the establishment of formal diplomatic ties, the two countries have managed to become each other's major trading partners.
In 2004, bilateral trade volume nearly surpassed US$ 6 billion, an increase of 52.8% over the previous year. China's export to and import from South Africa grew 45.5% and 60.9% respectively. As for investment, the total volume of two-way investment between China and South Africa is now well above US$ 500 million. South African conglomerates such as Anglo-American, SAB-Miller, Khumba Resources and Naspers have made substantial presence in China. Of specific importance inter alia is the Letter of Intent signed last year between Sasol and a consortium of Chinese companies including Shenhua Group on the feasibility study of the first phase of a "coal-to-fuel conversion" programme. Sappi, the world's largest fine paper producer, injected some US$ 58 million in an expansion project in China. Chinese investors, on the other hand, have by no means been lagging far behind. TV set and other home appliance manufactured with Chinese investment and technology have already secured a niche on the South African market. Also of particular importance are new and expanded Ferro-chrome joint venture projects, with investment from JISCO (Jiuquan Iron & Steel Corporation) and the second phase of China Iron & Steel Industry and Trade Group respectively.