South African and Chinese trade cooperation

23/06/2006

A series of bilateral agreements have been signed by representatives from South Africa and the People's Republic of China, including South Africa’s President Thabo Mbeki and the Premier of the People's Republic of China Wen Jiabao.

Speaking during the ceremony, President Mbeki said the number of agreements signed "underlines the importance of the strategic relationship that we have with the People's Republic of China and also underlines the extent of those relations".

Since the establishment of diplomatic relations in 1998, trade between China and South Africa has grown significantly with China becoming South Africa's second largest import partner in 2005.

The signing of the cooperative agreements took place against a backdrop of mounting concern over the damage being caused by Chinese textile products to the South African textile industry with several clothing factories having been forced to close down and thousands of workers losing their jobs.

"President Mbeki and I both agree that the issue of textiles should not be allowed to compromise the overall economic trade between the two countries,” commented Premier Wen. He also said there were a number of moves being made by his country to minimise the economic damage that China's textile products in South Africa might have on domestic industries. He added that China would do its best to help relevant countries, including South Africa, to enhance their competitiveness in the production of textiles.