2. Trade Relations and Economic and Technical Cooperation

South Africais China's largest trading partner in Africa. The trade volume between Chinaand South Africaaccounted for 20 percent of the total trade volume between Chinaand Africa. The direct bilateral trade between the two countries started in early 1990s. The trade volume between Chinaand South Africarapidly rose to US$2.58 billion in 2002 from US$ 14 million in 1991. In June 2000, the INVESTEC, South African Bank of Investment singed with the People's Bank of China an agreement on gold sales. The agreement regulates South African Rand Refinery sells one ton of gold to the People's Bank of China every three weeks. The accord, without time limits, was the first such kind of accord singed between the two countries.

From October 1 to 6, 2000, a Chinese delegation headed by President Yu Xiaosong of the China Council for the Promotion of International Trade (CCPIT) visited South Africato attend South African International Trade Exhibition (SAITEX).

On October 16, 2000, the governments of the People's Republic of Chinaand South Africaheld the first meeting of the Joint Scientific and Technological Committee in Beijing. At the meeting, the two countries agreed to further develop and deepen bilateral scientific and technological cooperation, and encourage and support bilateral long-term cooperation on technological research and exploration projects.

From November 25 to December 1, 2000, Ma Xiuhong, Assistant Minister of Foreign Trade and Economic Cooperation, visited South Africa. During the visit, Ma attended the hand-over ceremony of the first 128 sets of low-cost houses constructed with the aid of China. Ma also met with Minister Erwin of the South African Ministry of Trade and Industry.

On February 16, 2001, China Construction Bank opened a branch bank in Johannesburg. This was the second a Chinese Bank to open its business in South Africa. President Mbeki attended the opening ceremony and gave a speech. He said that the opening of business by China Construction Bank in South Africasignified that there was great potentiality for economic cooperation between two countries.

On May 18, 2001, the South African Chinese Business Council was established under the sponsoring of 16 South Africa-based China-funded enterprises. The aim of the Council is to aim unite all South Africa-based Chinese enterprises to promote the cooperation among themselves and strengthen communications with the local government and relevant departments, so as to achieve a joint cooperation and better development.

On June 21, 2001, a trade and economic technological fair was held in Johannesburg, South Africa, by Guangdongprovince. Governor Lu Ruihua of the province and 400 business representatives attended the event. The contracted value reached at this fair totaled US$1 billion.

From November 15 to 17, 2001, a Chinese trade and economic delegation headed by He Xiaowei, Assistant Minister of Foreign Trade and Economic Cooperation, paid a visit to South Africa. The assistant minister met with Minister Sankie of Housing and Minister Erwin of Trade and Industry. He also attended the hand-over ceremony of the low-cost houses built with the aid of China.

From March 3 to 7, 2002, Vice Governor Li Dachang of Southwest China's SichuanProvinceheaded a delegation to South Africa. During the visit, SichuanProvincesponsored a trade and economic symposium in Johannesburg.

On October 8, 2002, Chinese ambassador to South Africa Liu Jingui and South African Ministry of Water and Forest Resources Ronnie Kasrils attended the hand-over ceremony of some gratis water supplying equipment provided by the Chinese Government to the South African Government.

In 2002, the total trade volume between Chinaand South Africareached US$2.58 billion, up 16.1 percent from the previous year. Of the total, China's exports was US$1.311 billion, up 25 percent than that of the previous year, and imports US$1.269 billion, up 8.2 percent.

By the end of June 2002, the Chinese government gave its approval to 96 enterprises for their investment in South Africa, with contracted value of US$190 million. South Africahad 205 investment projects in China, with contracted value of US $130 million.

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