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Trade and Investment Activities Between China and South Africa

In: Other Topics

Submitted By Khensy90
Words 8475
Pages 34
ABSTRACT
In the recent years China has been seen as a major competition in the international economic market. It has been replacing many western states as the top trading and investment partner in many African states, and for decades it has been one of Africa’s best friends, helping in the decolonization process and building key infrastructure projects on the continent. China has been providing many African governments with cheap loans in exchange for securing their means of accumulating natural resources based on the principle of non-intervention and respect for sovereignty, which gives no strings attached. For more than a decade, diplomatic relations between China and South Africa have been marked a great growing relationship between both states. From a period of no official ties to limited interaction between the South African and Chinese Governments, the relationship has subsequently developed to become one of the closest between African and Asian states. Growing economic engagement, which underpins the warm ties between the two states, has put South Africa amongst China’s top three trading partners on the continent. Moreover, China is an emerging market economy; with a fast track of being the next economic rising superpower in the world and its current relations between it and Africa continue to grow fast with foreign direct investment increasing thirty-fold between 2003 and 2011, from US$491m to US$14.7 billion. In 2012, China pledged US$20 billion of loans to Africa over three years for infrastructure, agriculture and manufacturing. If the funds are stay the way they are and do not decline, China will become Africa’s principal financial backer. China is already Africa’s leading bilateral trade partner. Two-way trade grew from US$10.6 billion in 2000 to US$166 billion in 2011.

South Africa is a country with more than 50 million people of different racial...

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