Mr HU Jintao, the Vice President of the People's Republic of China, will be visiting South Africa during the period 31 January - 4 February 1999 at the invitation of Deputy President Thabo Mbeki.
This will be the highest level visit from China to South Africa and follows the visit to Beijing by Deputy President Mbeki in April 1998. Mr Hu's visit takes place one year after the establishment of diplomatic relations between South Africa and the People's Republic of China (PRC).
During the visit, South Africa and the PRC will sign agreements on Bilateral Air Services; Trade, Economic and Technical Co-operation; and on a Joint Economic and Trade Commission. There would also be an exchange of Letters of Intent on Consultations between the South African Department of Foreign Affairs and the PRC Ministry of Foreign Affairs, while the PRC will make available a grant-in-aid to the value of US$ 10 million for low-cost housing. The grant follows an earlier grant of US$25 million for housing and water projects in South Africa.
South Africa and China will discuss a wide range of issues against the background of China's traditional support for the countries of the developing world and South Africa's chairmanship of the NAM.
Bilateral trade between South Africa and the PRC amounted to US$ 1,8 billion in 1998, to which can be added South Africa's trade with Hong Kong, which amounted to US$ 1,3 billion over the same period. Expectations for strong growth in trade with China region are high and South Africa will seek to further strengthen these trade relations.
Chinese companies have invested more than R 400 million in South Africa, and this is rapidly expanding.
Several of South Africa's major banks and companies have established a presence in China and have set up joint ventures in that country.
ISSUED BY THE DEPARTMENT OF FOREIGN AFFAIRS
PRETORIA
26 JANUARY 1999