South Africa-China Relations - Evolving Cooperation, Collaboration and Competition

ANALYSIS

By Chris Alden and Yu-Shan Wu

South Africa, a leading economy on the African continent, and China, the largest developing country in the world, have forged a unique partnership. Operating at bilateral, continental and multilateral levels, the governments are actively striving to realise the comprehensive strategic partnership envisaged in 2010.

Enhancing these developments is South Africa's status as home to the continent's largest and oldest Chinese community, a concentration of Confucian Institutes and an active Chinese media presence. With the pace of trade and investment picking up, coupled to closer international cooperation with Beijing through the G-20 and BRICS grouping, South Africa-China ties are assuming a significant position in continental and even global affairs.

It is also a relationship of paradoxes, breaking with many of the assumptions that underpin contemporary analyses of 'China-Africa' ties. For instance, until recently South African investment into China far exceeded in depth that of China into South Africa.

Moreover, while economic ties between the two countries have extended beyond the conventions of resource extraction and infrastructure financing seen in other African countries, this appears to be changing.

Finally, the vocal criticism of Chinese policies levelled by some local trade unions, businesses and civil society representatives contrasts with the positive attitude in other quarters and increasingly warm party-to-party relations.

Bilateral ties

Following the establishment of formal diplomatic ties in 1998, relations have advanced gradually from the cautious approach adopted by former president Thabo Mbeki to a more all-embracing character under President Jacob Zuma. At present the most significant link, apart from diplomatic relations, is economic with two way trade accelerating since 2009, jumping by 32% between 2012 from R205 billion to R270 billion in 2013, thereby making China the country's largest trading partner. The momentum building behind more than a decade and a half of cooperation is producing closer economic ties that mirror the burgeoning bilateral diplomatic relationship.

Yet ironically one of the strongest features of its bilateral ties is also the most challenging. Like most of South Africa's trade relations, it has a large trade deficit with China, driven by South Africa's high imports of value-added goods and China's increasing demand for mineral products. Moreover, commercial competition with China in certain sectors like textiles has caused some like Moeletsi Mbeki to worry about 'de-industrialisation'. As a result there have been concerted efforts by both governments to address such challenges through mechanisms such as the Joint-Ministerial Working Group.

In terms of FDI, South African companies have enjoyed a degree of success through their presence in China, such as the case of South Africa's media conglomerate, Naspers and its investment into China's largest Internet company, Tencent. Still when the Industrial and Commercial Bank of China (ICBC) took a 20% stake ($5.5 billion) in South Africa's Standard Bank - said to be one of the largest foreign direct investments into the country - there were high hopes of further expansion of commercial relations. South Africa is deemed a 'mature' market with established and highly competitive players in strategic sectors (such as mining) and its strong regulatory framework and institutional structures seem to pose obstacles for new commercial entrants from China.

However, the recent announcement of Chinese financing for local beneficiation through a steel plant in Phalaborwa, is arguably part of a new trend aimed at employment generating investment for South Africans. This seems to be echoed in the expansion of Hisense and the FAW automotive manufacturing plants, discussions for the revival of the Coega Industrial Development Zone and even a prospective mixed-use residential, retail and light-industry facility east of Johannesburg.

Zimbabwe: Biti, Ncube Parties Start Unification Talks

FORMER MDC secretaries general Tendai Biti and Welshman Ncube have started talks aimed uniting their two political formations amid ongoing broader consultations for a grand opposition alliance against the ruling Zanu PF party.

Ncube, the MDC's founding secretary general, and several senior leaders broke ranks with then MDC leader Morgan Tsvangirai in 2005, accusing him of dictatorship and using violence against individuals who did not agree with him in the party.

Similarly Biti, who took over from Ncube, and other disgruntled top officials also ditched Tsvangirai this year over pretty much the same reasons as discontent boiled over after the MDC-T's disastrous performance in last year's elections.

The former finance minister has since formed the MDC Renewal Team which is being transformed into a political party after they failed to force Tsvangirai out of power.

In a statement released Wednesday following a meeting between Biti and the MDC-Ncube's secretary general, Priscilla Misihairabwi-Mushonga, the two parties signed a Memorandum of Understanding (MoU) to commence talks.

"The two secretary generals of the MDC and the MDC Renewal Team, Misihairabwi-Mushonga and Biti with their negotiation teams respectively met today in Harare as mandated by their political parties and signed a Memorandum of Understanding (MoU) to officially commence talks on reunification.

"The basis for the re-unification is based on the common history, bond and the origins of the Movement for Democratic Change as formed in 1999," said a statement posted on Biti's MDC-Renewal group website.

The two groups also committed themselves to continue to grand coalition talks with other opposition parties in the country.

"The talks will be guided by the shared values and principles of the MDC which include tolerance, the rule of law, peace, democracy, gender equality and a servant leadership," read the statement.

"The two formations are convinced of the necessity and imperative of the reunification as an important step towards achieving national progress and achievement of the ultimate goal of a democratic and prosperous Zimbabwe.

"However, the two political parties will continue to be part of the grand coalition talks and consultations in which the two parties have been involved in and are fully committed".

Ncube's MDC, the Simba Makoni-fronted Mavambo/Kusile/Dawn party, Dumiso Dabengwa's Zapu and the Renewal group are in the middle of talks to form a grand coalition that will contest the 2018 elections.

Libya: UN Ramping Up Aid Efforts Amid Deepening Crisis

The United Nations humanitarian wing said today it will need an estimated $35 million in additional funding to continue helping hundreds of thousands of people affected by the ongoing crisis in Libya.

According to the Libya country team of the UN Office for the Coordination of Humanitarian Affairs (OCHA), more than 331,000 people are in need of assistance, including an estimated 287,000 people who are internally displaced within and around the capital, Tripoli, as well as Benghazi.

In addition, another 100,000 people have fled to neighbouring countries amid the continuing violence between rival armed factions in the country.

In a press statement released today, OCHA said the main humanitarian priorities outlined in its new appeal are health and food assistance, provision of non-food items and hygiene kits, and mine action activities which would target the internally displaced, migrants, refugees, other vulnerable groups and affected host communities.

"Whilst the conflict has obliged the vast majority of the international community present in Libya, including the United Nations, to temporarily withdraw from the country, access is being sought through national and international partners who have presence in the country and through UN agency national staff," the statement said.

It added that humanitarian needs assessments were ongoing "in order to take into account the fluid security situation in the country and identify and target the most vulnerable affected populations and guide the humanitarian response."

Civilian casualties, injuries and large-scale displacement continue to increase in Libya as a result of recent clashes in Tripoli and several other areas of the country.

The North African nation has been embroiled in some of the worst fighting since the 2011 uprising that ousted former leader Muammar al-Qadhafi and set the country on a transition to democracy.