It has taken China only 10 years after establishing diplomatic and trade relations to become South Africa's biggest trading partner. According to the latest figures from the Department of Trade and Industry, China has overtaken the US, Japan, Germany and the UK in trade volumes with SA.

Between January and July, trade volumes have reached 32,4bn rand(R), followed by the US with R21,7bn, Japan's R19,7bn, Germany's R17,5bn and the UK's R15,2bn. This indicated an increase in SA-China trade of 11,95% from 8,45% in the same period last year.

In the 2006-07 financial year, the US was SA's major trading partner only briefly after taking over from the UK, which had held the number one spot for a long time.

Warm diplomatic ties
The Chinese ambassador Zhong Jianhua, says that it is the warm diplomatic ties between China and SA since 1998 matched by growing economic engagement, that has put SA among China's top three African trading partners. Bilateral trade volumes have risen from R800m in 1998 to R17,8bn last year.
Since 2000, China-Africa trade has grown 10 times, reaching R106,8bn last year, according to the Chinese commerce ministry.

Chinese exports to Africa have hit 50,8bn, while China's imports from Africa have reached 56bn.
Other than imports of Africa's raw materials, at least 500 of the continent's products from 31 countries such as wines, tobacco, coffee and olive oil have received a zero-tariff treatment from the Chinese government and exposure to the country's markets.

Trade surplus
Zhong said SA had for the first time enjoyed a trade surplus with China and that this could increase.
He attributed the increase in South African exports to China to the international financial crisis, which saw most developed countries reduce their orders, especially from emerging economies.

China imports iron ore, gold, copper, chrome, wine, timber and paper pulp from SA, while China mostly exports value-added products, such as appliances and clothing.

Angola - accounting for 24% of China-Africa trade - is China's major African partner as it is the biggest source of China's oil imports. SA follows on 17%, then Sudan (8%), Nigeria (7%) and Egypt (6%). Angola and SA are ranked 29 and 31 respectively among China's trading partners worldwide. These countries collectively account for 62% of total China- Africa trade.

Photo: DCF pics (Flickr CC)