Issued by: SA Communication Service
RE: MEETING BETWEEN MINISTER ALEC ERWIN AND MADAM WU YI, MINISTER OF FOREIGN TRADE AND ECONOMIC COOPERATION OF THE PEOPLE'S REPUBLIC OF CHINA
Minister Erwin was pleased that the occasion of UNCTAD IX provided the opportunity for the Minister to also conduct important bilateral discussions with Madam Minister Wu Yi, the most senior official from the PRC government ever to visit South Africa.
The Minister signed and exchanged letters granting reciprocal Most Favoured Nation (MFN) treatment between SA and the PRC. This will ensure that South African exporters will compete in the PRC on an even playing field with other countries' exporters into the future. The PRC has already been receiving MFN status in South Africa and the exchange will therefore have the effect of converting a de facto situation into a more formal one. The exchange will result in positive trade developments for both countries and will not prejudice domestic industry in any way.
Fruitful discussions were also held as to the need for cooperation between the two countries in finding mechanisms for resolving problems that arise between them, an inevitability in any trade relationship between countries. In particular the PRC has pledged to assist South Africa during its time of industrial restructuring and high unemployment. In this regard officials from both countries will pursue concrete means in which to deal with structural problems that may emerge as trade takes place. Minister Erwin indicated that South Africa would seek such cooperation from MOFTEC only where it is necessary to smoothly effect critical structural changes needed in South Africa. The PRC expressed its willingness to consider export restraint measures where this would facilitate these necessary structural changes in the South African economy.
Minister Erwin also expressed his appreciation to Madam Minister Wu for China's active participation in the UNCTAD IX Conference and its intention to play an active role in UNCTAD in the future. He also indicated that China's global development perspectives were closely aligned with those of the South African government and this would further facilitate cooperation between the two countries in the future. The Ministers stressed their intention to further promote the trade and investment ties between the two countries with a view to realising the significant economic potential between them.
Gallagher Estate 3 May 1996