Beijing - President Jacob Zuma is looking to narrow South Africa's trade deficit with China, as the government seeks to broaden South Africa's economic appeal beyond mines and resources.
China is South Africa's largest trading partner, but last year South
Africa ran a $2.7bn trade deficit with China, according to South
African statistics.
"We all agree that in South Africa's export market to China there
is a preponderance of primary products, and in our imports from China
there is a preponderance of value-added goods," South African Trade
Minister Rob Davies told a news briefing on Tuesday, the first full day of a three-day visit to China.
"We want to work
together with China to try to address that so we have a more equitable
balance of trade," he said, urging manufacturers of power equipment,
railway cars, solar water heaters and vehicles to consider setting
up factories in South Africa.
In the first six months of 2010,
trade between the two countries reached $10.8bn in value, a 56.1% jump compared to the same time last year.
South Africa is looking for expanded trade and investment to help meet its development needs by improving roads, communication and power and by generating more manufacturing jobs, Zuma told a forum of business executives from China and South Africa.
"China is indeed a key strategic partner for South Africa, and South Africa is open for business in a big way," he said.
"We envisage meaningful future cooperation in infrastructure, the benefaction of minerals, engineering, energy, information and communications technology and electronics. There are also opportunities to be explored in manufacturing."
Zuma's comments underscored the attractiveness of China for African countries, while also hinting at the frustrations of African governments and companies that want to see more Chinese investment and orders spreading beyond mines and resources.
For Beijing, Zuma's visit is an opportunity to consolidate ties with African countries, where China is increasingly turning for resources, markets and diplomatic support. Late last year, Chinese Premier Wen Jiabao offered Africa $10bn in concessional loans over three years.
Zuma was accompanied by a delegation of over 370 business representatives - the biggest ever for a South African leader's visit abroad, said officials.
Chinese and South African executives signed a dozen deals and memorandums of understanding about investments in energy, power transmission and railways.
The deals included a $303.6m loan agreement between South Africa's third-largest mobile phone operator, Cell C, and China Development Bank.