China offers a sop to developing countries

RAY SMUTS TALK TO China, don’t be afraid of it. That was the message from Lioe Goeijin, Chinese ambassador to South Africa, when he addressed a seminar in Cape Town recently. Goejin says bi-lateral trade between China and South Africa amounted to almost US$6 billion last year, with investments coming from a good number of South African corporations including Sasol, SABMiller, De Beers and Anglo American. Goeijin said China welcomed know-how in the form of agriculture technology, environmentally friendly construction, assistance in reforming state undertakings and the sprucing up of neglected industrial areas in north-east China. As the country’s wealth increases, so too will the demand for jewellery, another opportunity for those in the trade as China imported diamonds worth R440 million from South Africa last year. In a bid to level the playing fields, China has decided to reduce tax repayments on Chinese textile exports to developing countries from 17% to 11%. Tax on textile imports into China will also be reduced.