Home PodcastJulie Alli The powerful trading relation that South Africa-China have

The powerful trading relation that South Africa-China have

by Salaamedia Intern

South Africa – As China celebrates 73 years since its formation, South Africa has made a further commitment to cooperate with them. The friendship between the two nations has grown strong over the years with China being South Africa’s biggest foreign trade partner over the last 13 consecutive years.

In January of this year South Africa jointly with China celebrated 25 years of formal diplomatic relations. United Nations (UN) Secretary General Antonio Guterrers fears this alliance is causing a rift in international cooperation. However, Gideon Chitanga, Research Associate at the African Centre for the study of the United States at the University of Witwatersrand, believes the statement was more indicative of the polarisation between the West and the rest of the global community.

“With the particular case of Ukraine, South Africa took a position that emphasised the need for diplomacy. This is the same position that China also took. Basically, saying they were opposed to the escalated conflict and the sanctions against Russia. At the same time, they were calling for dialogue in mediation. This kind of diplomacy was a departure from the mainstream position that the West had taken.”

 

Nancy Pelosi visiting Taiwan

US Speaker of the House, Nancy Pelosi, visited Taiwan in August in what appears to have been an attempt to let the world and indeed China know that the US stands with Taiwan. Chitanga believes it was a smart move on South Africa’s part to not say anything about the visit. Given the fact that China has One China policy which states in simple terms that Taiwan is a part of China. 

“In terms of their relationship with the US, they signed several laws which were part of the framework that then opened diplomatic relations between China and the US. One of the key issues was the recognition that China includes Taiwan. The main problem is if you look at the convention in terms of their language, I think for the US they want to treat them as vague to allow them to manoeuvre within the sense of advancing their interests. While for China, it’s clear that what China is saying is that Taiwan is part of China and any issue about Taiwan relates to the sovereignty and the self-determination of China.”

Many African nations in the African Union recognise China’s sovereignty over Taiwan. They respect the One China Policy. South Africa has respected the policy and this belief since it opened diplomatic relations with China. Chitanga believes that many African countries either openly or secretly would side with China on this matter.

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China creating jobs in South Africa

The trade relations between South Africa-China have seen R544 billion done in trade in the last year alone. Chinese enterprises have created 400 000 jobs in South Africa and there are talks another 20 000 will be created in the next three years. However, these are just statistics and to prove these jobs are being created will take some effort, said Chitanga.

“I think I would say there is a lot of work to exactly provide the required evidence or public information so that people are aware of these levels of engagement. That information comes from police makers and to that extent I would like to trust that the information is concrete and its information that is true and obviously a different statistic would vary slightly. It’s quite clear that China is the best trading partner for South Africa.”

The country is suffering from a high rate of youth unemployment. What ministers need to do, according to Chitanga, is to firstly provide this information to the public and then inform them where these jobs can be found. They should have mechanisms in place for this information to be spread throughout the community.

 

The ocean economy created with the help of the Chinese 

Operation Phakisa was launched in 2014. The aim was to grow the Ocean Economy’s contribution to the country’s GDP to R129-177 billion by 2033. Some 250% to 350% of its present value. A group of Chinese scientists recently came to South Africa to assist in the building of small harbours across the country. For Chitanga it is good news as it now opens up more pathways for those who have been previously marginalised from this economy.

“It is good news in the sense that if you think about South Africa in its history, a lot of black people are marginalised from the Ocean Economy. Participation is limited. They are excluded. The government creating partnerships in these kinds of sectors where the formerly marginalised communities are then given space to participate. I think that would be a great way forward in terms of empowerment, in terms of just opening new avenues of job creation and as well as business opportunities and entrepreneurship.”

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Getting Transnet up and running with China

China’s railway system is unique and functions extremely well. On the other hand, Transnet is a shell of its former self. The dilapidated railway system has meant that trucks must now carry goods back and forth which has led to the deterioration of our national roads. Some may even have an argument that high volume of trucks on the road lead to more car accidents. Chitanga believes China can help South Africa build its railway system again but they must also transfer the skills to South Africans so they can continue to upkeep the railway.

“China is in the position to competitively provide the required technologies but having said that I would also imagine that it is more important to look at the transfer of skills. It is already being done in other partnerships through the China Africa Cooperation Forum. There is opportunity and particularly for South Africa because South Africa is the biggest economy. When it frames and creates such partnerships it creates a model for African countries. There’s no justification for South Africa to have a dilapidated transport infrastructure, especially railways, which remains the cheapest if it’s properly maintained.” 

The trade relationship between South Africa-China has been that has benefitted both parties. It seems as if the relationship will only bring more opportunities for South Africa in terms of job creation and improving infrastructure. 

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