China-South Africa Friendship: Trade with Benefits


China &South Africa friendship with trade benefits

 By Tom McGregor, CNTV Commentator

China-South Africa Friendship: The Start of New Things

Africa stands poised to transform into a global economic powerhouse soon. The land is rich in natural resources with a young population. Africans are eager to get more educated, better trained and ready to build more reliable infrastructure.

South Africa is the most developed nation on the continent and a major draw for Chinese investors and traders looking to base operations here to expand further afield in the vibrant region.

Johannesburg will host the Forum on China-Africa Cooperation (FOCAC) on Dec. 4-5 to address measures to enhance the industrialization and modernization of the sub-Saharan region.

South Africa’s Department of Trade & Industry (DTI) has good reason to support FOCAC. DTI announced last week that over 16 South African companies signed 20 contracts with Chinese companies at a combined valued of over $US913 million.

SA gets value-added boost

China has long embarked on a manufacturing-based, export-driven economy. Chinese companies had relied on importing raw materials to manufacture value-added products from its factories. The strategy has proven effective and South Africa would like to follow a similar mode of production.

Yet, SA holds a significant advantage, since it already has plenty of natural resources. Chinese companies plan to increase investments in South Africa’s manufacturing sector, while Beijing’s 21st Maritime Silk Road would strengthen roads, railways, power generation and airports in the country.

“Both countries agreed that China would increase its sourcing of value-added products from South Africa in order to improve the structure of trade between the two countries,” said a DTI press release.

Recommended Read: Retirement Anxiety: How Boomers Navigate a World of Pain

Overcoming power outages

South Africa would struggle to emerge as a major manufacturing nation in the midst of frequent rolling blackouts. Hence, its government is pouring substantial funds into constructing eight new nuclear power plants, as reported by the China Post.

Chinese and South African nuclear regulators have recently signed a technical agreement on matters that include, “licensing procedures, vendor inspections, inspector training, joint inspections and technical support.”

“Bilateral cooperation arrangements such as these serve as a valuable mechanism for ensuring that (South Africa’s) NNR (National Nuclear Regulator) regulatory practices are benchmarked against the current standards and practices as applied internationally with the nuclear energy,” said NNR CEO Bismark Tyobeka.

Cheers to Western Cape wine

There’s much ado about South Africa’s natural resources and mining sector, but it’s also recognized for having flourishing vineyards located in the Western Cape Province. South African wine exports to China have increased rapidly, surging to over 11 million litres in 2014.

Provincial government and trade officials had just visited China earlier this month to encourage companies to invest in the regional wine sector and to launch a publicity campaign for Chinese wine lovers.

“We have doubled our market share and our value share is up 104 percent,” Alan Winde, Western Cape’s Economic Opportunities Minister told Xinhua. “We aim to double the exports of wine to China by 2025. If the current trend continues, I am confident we will reach that goal.”

The wine industry employs over 167,00 in the Western Cape and for the past three consecutive years, Perfect China, has earned the distinction as China’s biggest importer of South African wine.

SA’s business partner and teacher

South Africa appears on the brink of enjoying robust economic growth, but its business community must learn more while in its developmental phase. China had experienced numerous challenges during this stage of economic growth, but the country had risen to a stronger nation.

Therefore, China’s businesses can teach South Africa how to advance to become more prominent players in the global economy, which would create win-win benefits for both sides

Originally Publised Dec 3, 2015 , updated Dec 2022

Other articles of interest:

How To Get Financial Freedom

How To Get Financial Freedom: Escape the Herd for Lasting Success

Feb 27, 2024 How To Get Financial Freedom: Diverging from the Masses for Prosperity Achieving financial freedom often requires a ...
food poisoning is legal in the USA

Legalized Food Poisoning: America’s Toxic Diet by Design

Editor: Draco Copper | Tactical Investor America's Hidden Epidemic: The Legalized Food Poisoning Crisis Updated Feb 24, 2024 In the ...
"""investing for dummies""": follow the trend or bend

“””Investing for dummies”””: Follow The Trend

"""Investing for dummies""": Novel Trend Following Techniques Updated Feb 23, 2024 Regarding """Investing for dummies""", following the trend can be ...
Executive Compensation: Navigating Integrity Over Greed

Executive Compensation Driving Share Buybacks

Editor: Vladimir Bajic | Tactical Investor Executive Compensation & Greed: Navigating the Abyss of Wealth Disparities Updated Feb  18, 2024 ...
Negative Interest Rates Help Foster Economic Recovery Illusions

Illusions of Economic Recovery: Negative Interest Rate Controversy

Editor: Vladimir Bajic | Tactical Investor The Paradox of Negative Interest Rates Updated February 2024 The concept of negative rates ...
Mastering the Trading Range

Mastering the Trading Range: Unlocking the Potential for Explosive Gains

The Trading Range:  Masterfully Navigating Volatility  Feb 14, 2024  Introduction In the ever-fluctuating world of stock markets, mastering the trading ...
Unlocking Precious Potential: The Rational Case for Owning Bullion in the Gold to Silver Ratio

The Golden Symphony: Unveiling the Dynamics of the Gold to Silver Ratio

Updated Feb 2024 Securing Future Finances: Gold-Silver Ratio Insights In a world of illusory economic recovery driven by hot money ...

Inside the Market Psychology Cycle: Unveiling Trends and Tactics

Mindset Mastery: Cracking the Market Psychology Cycle Updated Feb 13, 2024 Intro Market psychology, a crucial aspect of trading and ...
South China Sea Showdown: the heat is on

South China Sea Showdown: Intensifying Heat on the Horizon

The South China Sea Showdown: A Tragedy in the Making? Feb 8, 2024 Introduction:  In the ever-evolving geopolitical landscape, one ...
Will the Stock Market Crash: Analyzing Possibilities and Implications

Will the Stock Market Crash: Analyzing Possibilities and Implications

Will the Stock Market Crash? Resilience Amidst Uncertainty Feb 8, 2024  Debunking Stock Market Crash Fear: Why It's Nonsensical For ...
China Quantitative Easing

 China Quantitative Easing: Battling Economic Slowdown

Feb 6, 2024 China Quantitative Easing Strategy: Combating Economic Slowdown Introduction: As a financial analyst, it is essential to delve ...
What is Data Manipulation and Its Nefarious Applications?

What is Data Manipulation: The Dark Side?

What is Data Manipulation: Its Nefarious Uses Feb 5, 2024 Data manipulation is a practice that involves distorting and altering ...
corruption in china; Aggressive crackdown on Crooks

Corruption in China: Government’s Aggressive Crackdown on Wrongdoings

Unveiling the Veil: China's Corruption Conundrum Under Intense Scrutiny Feb 4, 2024 Introduction: Corruption in China has been a longstanding ...
Things That Scare Americans The Most

These Are The Things That Scare Americans The Most

Editor: Draco Copper | Tactical Investor Corrupt government officials scare Americans more than Terrorists. Feb 3, 2024 According to more recent ...
Exotic Art: The Fusion of Art and AI Brilliance

Exotic Art: The Fusion of Art and AI Brilliance

Discovering the World of Exotic Art: Amplified by AI Jan 31, 2024 Exotic Visions: The Harmonious Blend of Art and ...

Gold on the verge of a breakout rally? (Nov 24)

9 ways to build wealth in the stock market  (Nov 24)

China stock market reforms and long-term outlook   (Nov 24)

Bonds will not crash in 2015 (Nov 23)

Dr Copper, economy and the markets no longer dance to the same beat (Nov 23)

Is Crude oil headed higher or lower? (Nov 20)

Is the Dow going to crash in 2015 (Nov 18)

Predictions for wild weather, end of Multiculturalism & religious wars (Nov 14)

The Dow Industrials are not going to crash (Nov 11)

Oops we did it again- The Fed is setting up the masses for another stimulus program (Nov 9)

Palladium Bulls are getting ready to sprint  (Nov 7)

Dow industrials set to defy naysayers and trend higher  (Nov 6)

Dow continues to soar, doctors of doom wrong, what’s next (Nov 5)