Date: 15/11/2009
Source:  African National Congress
Title: ANC: Phosa: Extract from a speech by the Treasurer-General, during a Tourism and Trade Seminar, China

China has now emerged as South Africa's largest
export destination, with bi-lateral trade exceeding R116 billion in 2008, a
dramatic increase given the fact that in 2005 the bi-lateral trade stood at
R40 billion - that is an almost threefold increase in only four years.

Both
governments are committed to promoting mutually beneficial trade, where both
economies benefit in terms of growth, access, and economic capacity and job
creation. This is a position that we as the ANC strongly support. We are
promoting and assisting partnerships that will assist us in our primary
objective of fighting poverty through economic growth.

This goal is best
achieved through trade and investment that provides new job opportunities in
our country. To this end, Vice Minister Li, we need to further our
discussions energetically creating further opportunities between our two
countries.

We need to commend the work being done by both governments to
promote co-operation. The South African trade deficit has systematically
decreased from 55% in 2005, to 38% in 2008. Of course much still needs to be
done, but clearly the position is improving, and we ascribe that to a clear
understanding between our two nations that sustained cooperation and
friendship can never be one-sided, both sides need to substantially benefit.

It has been mentioned in the opening remarks that the ANC's Progressive
Business Forum has developed working relationships between both the China
Council for the Promotion of International Trade and the China Economic
Cooperation Centre. This Seminar is in fact being jointly organised between
the PBF and the CECC. The cooperation now needs to be taken to the next
level, because, apart from the obvious benefit that is has in real economic
terms, it also signals the importance placed by the ANC through the
Progressive Business Forum on further developing, strengthening and
expanding the economic cooperation between the Republic of South Africa and
the People's Republic of China.

I would like to call on the Chinese
government, the China Council for the Promotion of International Trade and
the China Economic Cooperation Centre to actively encourage companies to
invest in South Africa.

We in South Africa will do everything in our power
to facilitate Chinese foreign direct investment in order to create further
economic growth, to provide sustainable jobs and to attack poverty. We are
grateful for the many Chinese companies that have already invested in South
Africa.

A material and huge opportunity awaits Chinese companies that take
up the invitation to invest in manufacturing in South Africa, since that
apart from South Africa being by far the largest economy in Africa, it can
be the springboard or gateway for South African - Chinese partnerships into
sub-Saharan Africa.

As regards South Africa today the economic fundamentals
of the country are sound. This is evidenced by our ability to, like China,
weather the onslaught of the financial crisis. Whilst, like in most
countries, it had a negative effect on our economic growth, the country is
poised for growth and is ready to take advantage of the turnaround as it
slowly starts taking effect.

South Africa is committed to South-South trade
and investment and therefore places a high priority on developing trade and
investment between developing nations.

South Africa is a reliable
investment destination. Its economic infrastructure is good. It has good
ports, good telecommunications, good roads, an extensive rail system, and a
world-class financial infrastructure.

We share a joint understanding of
what needs to be done to bring about a more equitable and fair world
economic order. We have already laid the foundations on which to build even
stronger economic ties.

Given the role of the ANC and its Progressive
Business Forum in South African society, the significance of our presence
here in China should not be underestimated. We are here to help make it
work, and together with the CPC, the authorities in China, and the China
Council for the Promotion of International Trade and our organisational
partners, the China Economic Cooperation Centre we can do so.