South African minister to visit China to boost trade relations

South African Minister of Trade and Industry Rob Davies on Thursday said he will visit China during the weekend to strengthen the existing relations between South Africa and China. The minister will be accompanied by 68 companies to take part in the South African expos which will take place in Beijing and Shanghai on Oct. 22-26. "South Africa and China signed the Comprehensive Strategic Partnership Agreement (CSPA) in August 2010, prioritizing the improvement of the structure of trade between the two countries, in particular by working towards a more balanced trade profile and encouraging trade in value-added products," said the official. The South African minister believed the expo will increase the export of South African goods to China, saying "China has showed some commitment in encouraging companies to invest in South Africa' s manufacturing industry. The expo is a way of luring investors to South Africa." In 2011 the South African exports to China reached the highest of all time at 85 billion rands (about 10 billion U.S. dollars), increasing by 45 percent from 2010. This expo is a follow-up to the 2011 Beijing and Shanghai expos which initiated the shift from commodity exports to value-added ones. "The South African expos which took place last year generated on the spot export sales of value-added products worth 8 million rands, and estimated future export sales over the medium term (next three years) of about 400 million rands," said the minister. The South African delegation will hold investment seminars, business to business meetings and exhibitions in the business expo. South Africa has chosen export sectors products and investment projects that they will table in the engagement with China, including agro processing, oil and gas, renewable energy, infrastructure, automotive, information technology and mining. South Africa expects to have its own high-speed train in future with the assistance of China. A memorandum of understanding will be signed between the two sides in line with promoting South African products in China. "This is a step in the right direction of further strengthening trade relations between the two countries," said the minister.