Karima Brown, Group Executive Editor of Independent News & Media South Africa, talks to State Councillor Yang Jiechi on the eve of the first summit on African soil of the Forum on China-Africa Co-operation.
Karima Brown: As Your Excellency has visited South Africa several times, what is your impression about South Africa? What is the aim of your trip to South Africa this time?
State Councillor Yang Jiechi: South Africa is known as the rainbow nation. Every time I visit, I am deeply impressed with its breathtaking scenery, diverse cultures of unique charm, and the warm hospitality of the people.
More important, I am always heartened to see new changes. In recent years, under the leadership of President (Jacob) Zuma, the South African government has pursued a policy of national reconciliation, committed itself to growing the economy and improving people’s livelihood, and enhanced its international standing and regional influence. I sincerely wish the South African people greater strides in the path of national development.
My visit this time is for the main purpose of comparing notes with the South African side with regard to the preparations for the Forum on China-Africa Co-operation summit in Johannesburg this December, and having an in-depth discussion on the arrangements and deliverables of President Xi Jinping’s visit to South Africa.
We wish to work together with South Africa to translate the important agreement reached by our two presidents into concrete actions and specific programmes and make the summit and the visit a success.
undefinedKB: This year marks the 15th anniversary of the founding of the Forum on China-Africa Co-operation. How do you evaluate its development? As we all know, this is to be the forum’s first summit on African soil. What is the significance of this summit for China-Africa co-operation, and what outcomes can we expect?
State Councillor Yang Jiechi: Since the inception of the Forum on China-Africa Co-operation, China and Africa have had fruitful co-operation across the board.
Political mutual trust has grown significantly. The two sides support each other on matters involving each other’s core interests and major concerns, thus upholding the common interests of China, Africa and the developing world.
Our practical co-operation has progressed in leaps and bounds, delivering tangible benefits to the Chinese and African people. Statistics show that in 2014, trade between China and Africa exceeded $220 billion and China’s investment stock in Africa surpassed $30bn, an increase of 22 and 60 times respectively over the figures in 2000 when the forum had just been established. Moreover, the share of China-Africa trade in Africa’s total foreign trade has increased from 3.82 percent to 20.5 percent.
What is particularly noteworthy is China’s commitment to helping Africa break the two development bottlenecks of underdeveloped infrastructure and a lack of human resources. The efforts have made a big difference.
By June, more than 3 800km of railways and 4 334km of roads had been built or were under construction in Africa with Chinese financing. More than 200 schools of various kinds have been established with Chinese assistance or financing. The Chinese government provides Africa with more than 7 000 government scholarships each semester and holds more than 100 multilateral and bilateral technical and management training programmes and senior officials workshops for Africa each year.
The Forum on China-Africa Co-operation has proved to be an important platform for collective dialogue and an effective mechanism for enhanced practical co-operation. As such, (the forum) is welcomed by all parties and has become a banner for promoting China-Africa unity and leading international co-operation on Africa.
African countries have the common desire to accelerate industrialisation and agricultural modernisation in a bid to realise economic independence and self-reliant, sustainable development.
After more than 30 years of reform, opening up and rapid development, China has developed a large number of competitive industries and accumulated strong production capacities. This puts us in a better position to work with other countries to achieve win-win development based on complementarity of strengths.
In other words, given their respective strengths, China and Africa are each other’s opportunity and need each other.
Convened against such a background, the Forum on China-Africa Co-operation summit will have far-reaching significance for boosting transformation, upgrading China-Africa relations and promoting more balanced, inclusive and sustainable development of the world.
On his first visit to Africa in 2013, (our) president put forth the principles of sincerity, real results, affinity and good faith to guide our relations with Africa, and called for taking a right approach to justice and interests.
The fundamental purpose is to combine efforts to help Africa achieve economic independence, self-reliance and sustainable development with China’s own development. China and Africa will seize this rare historical opportunity of the summit, fully leverage their advantages of political mutual trust and economic complementarity and step up mutually beneficial co-operation in the five priority areas of industrialisation: agricultural modernisation, health, people-to-people exchanges, and peace and security.
We believe that this summit, through its new blueprint and new momentum, will send to the rest of the world a strong message of China and Africa working together.
China, in the spirit of equal-footed consultation and joint preparation for the summit, stands ready to work with South Africa and the other 50 Forum on China-Africa Co-operation members on the African side to make the summit a historic gathering, thus writing a new chapter for China-Africa relations.
KB: How do you see today’s China-South Africa ties, and what are the opportunities and challenges? What outcomes can we expect from President Xi’s visit to further these relations?
State Councillor Yang Jiechi: With the establishment of the comprehensive strategic partnership and the signing of the China-South Africa 5-10 Year Framework on Co-operation, the relationship between China and South Africa is at its best in history. The two countries enjoy close high-level exchanges. This year alone, the two presidents will have five meetings.
We have reached an unprecedented level in political mutual trust and given each other understanding and support. Practical co-operation is booming, delivering more real benefits to people of both countries.
In 2014, bilateral trade reached $60.3bn, a fortyfold increase over that in 1998 when the diplomatic ties were established.
The stock of Chinese investment in South Africa has reached $12bn, making China one of the major investors in South Africa. At the same time, South Africa is the leading African investor in China.
I have every confidence in the future growth of China-South Africa relations.
Richly endowed in natural and human resources and committed to its strategy of reindustrialisation, South Africa enjoys huge market size and development potential.
As for China, thanks to its rapid economic growth for more than three decades, it boasts comparative advantages in capital, technology, business and personnel.
China and South Africa are each other’s necessary and natural partners in development and have before them a rare, historic opportunity for co-operation.
President Xi will attend the Forum on China-Africa Co-operation Summit and visit South Africa. This will surely give a strong boost to the friendly and co-operative relations between the two countries. The two sides need to seize this important opportunity, and deepen co-operation in such key areas as special economic zone, marine economy, manufacturing industry, energy and resources, infrastructure, and people-to-people exchanges, bringing more tangible benefits to the two peoples.
Of course, the two sides also face numerous challenges in implementing, in a more effective manner, the important agreement reached by the leaders of our two countries.
We hope that the two sides will create for each other a better business and investment environment, find opportunities amid challenges and turn enormous co-operation potential into fruitful results on the ground.
KB: China is encountering a slowdown in economic growth, with its stock and currency markets having undergone fluctuations that have attracted the world’s attention.
Some people ask whether Africa can still count on China’s development to bolster Africa’s development, and argue that Africa should turn to other partners and strengthen co-operation with them.
How do you see the current state of the Chinese economy and its development prospects?
Under such circumstances, how could the two sides deepen win-win co-operation?
What are the prospects of China-Africa co-operation?
State Councillor Yang Jiechi: Since the introduction of reform and opening up more than 30 years ago, the Chinese economy has grown rapidly at an average annual rate of about 10 percent. It is now the second largest in the world.
At present, the Chinese economy is shifting from a high-speed growth to a medium-high growth.
This is not only because of the sluggish recovery of the world economy as a whole, but also a result of China’s proactive management to promote structural reform, lower the speed of growth and improve the quality of growth.
We define this as the “new normal” of the Chinese economy. In the long run, it will help increase the efficiency of the Chinese economy and upgrade it, and ensure that the Chinese economy continues to grow in a steady and sound manner.
The Chinese economy registered a 7 percent growth in the first half of this year. Such performance is one of the best among the world’s major economies.
The long-term prospects of the Chinese economy remain sound. Major steps are being taken in China to stabilise growth, deepen reform, adjust structure, improve people’s well-being and prevent risks to sustain a medium-high speed of growth.
China is making progress in its pursuit of a new type of industrialisation, IT application, urbanisation and agricultural modernisation, and with a high savings rate and consumption potential China enjoys huge market space and potential.
China’s stock market has reached a stage of self-correction and self-adjustment. And there is no basis for continuous depreciation of the renminbi.
Statistics show that the Chinese economy remains a major contributor to economic growth in the whole world and in Africa. In the first half of this year, 30 percent of the world economic growth came from China, and China’s role in facilitating the rapid growth of African economies is widely appreciated.
It is true that China’s imports and exports have somewhat slowed down this year, due to price drop in commodities on the international market. But in terms of aggregate volume, China is buying more commodities, not less, and its imports of goods will remain on a steady upward trajectory.
It is estimated that in the next five years, China will import $10 trillion (R133 trillion) in goods and invest more than $500bn overseas. Outbound visits made by Chinese people will exceed 500 million.
What has happened proves that China’s reform and opening up have created development opportunities for the world and contributed in many ways to Africa’s rapid development. China will continue to advance reform.
This will bring not just more dividend to the development of the Chinese economy, but also more opportunity for the prosperity of Africa and the world.
Having gone through thick and thin together, China and Africa are bound by this community of shared future and interests.
In the 1960s and 1970s, the two sides forged a profound friendship in the fight for national independence and liberation. Today, nothing should stop the two sides from coming together to pursue common development. Africa is blessed with abundant natural and human resources and enjoys huge market and development potential.
The Agenda 2063 and its first 10-Year Plan adopted at this year’s AU Summit have prioritised industrialisation and sustainable development, ushering Africa into a new stage of development.
As for China, with more than three decades of fast growth, it now has rich experience, mature technology, cost-effective equipment and sufficient capital in the field of industrialisation.
More important, China has the strong political will to support Africa in achieving economic independence and self-reliant sustainable development.
As an important member of the international community, Africa deserves greater international support in its development. China welcomes more diversity in Africa’s partnerships and stands ready to work with other partners in the international community to support Africa under the principle of “raised, agreed and led by Africa”.
China believes Africa belongs to the African people. Respecting Africa’s centrality is essential for such co-operation.
KB: South Africa is the rotating chair of the Group of 77 plus China this year.
Last month, China and the UN co-hosted the High-Level Round Table on South-South Co-operation at UN headquarters. President Xi chaired the meeting and shared his views on south-south co-operation.
As two important developing countries, what roles could China and South Africa play in promoting south-south co-operation? What kind of co-operation could be launched in the future?
State Councillor Yang Jiechi: South-south co-operation is an important means for developing countries to seek strength through unity and pursue win-win outcomes. It is also a significant force in international development co-operation.
China attaches great importance to south-south co-operation. It initiated and co-chaired with the UN the round table during this year’s UN Sustainable Development Summit.
President Xi and more than 20 foreign leaders and representatives of international organisations reviewed the journey of south-south co-operation and explored future co-operation and development, which has lent fresh impetus to south-south co-operation.
As President Xi pointed out at the round table, the post-2015 development agenda has set higher development goals and raised higher development requirements for all countries.
South-south co-operation should take the implementation of the post-2015 development agenda as an opportunity to boost developing countries’ development in quality, scale and scope.
China and South Africa are major developing countries. We should stand firm in upholding the overall interests of developing countries in implementing the post-2015 development agenda and on other major international issues.
Today, pursuing the common task of development, China and South Africa have all the more reason to work together.
As President Xi points out, developing countries need to share their successful governance experience, synergise development strategies, start with connectivity and global production capacity co-operation to build closer partnerships in trade, finance, investment, infrastructure and environmental protection.
Along this line of thinking, China will step up practical co-operation with South Africa.
Meanwhile, China will continue to work with South Africa to promote global economic governance reform, urge developed countries to make good on their official development assistance commitment, improve the external environment for the development of developing countries, help them achieve poverty reduction and development goals, and successfully implement the post-2015 development agenda.
KB: China and South Africa are Brics members. It is China that invited South Africa into Brics.
As the world economy is undergoing profound adjustment, Brics countries also face some difficulties and challenges in development and co-operation.
Some people think Brics co-operation has lost its momentum.
How do you see the prospects of Brics co-operation?
State Councillor Yang Jiechi: Given the sluggish world economic growth, the Brics countries face growing difficulties and challenges in their economic development. However, as a Chinese saying goes, it takes a long-term view to put things into perspective.
Similarly, we need to adopt a historical, long-term and holistic perspective to truly understand the development of and co-operation among the Brics countries.
In the short run, the Brics countries do see some moderation in their economic growth and face certain problems in structural adjustment and transition.
Nonetheless, if we look beyond the immediate trend lines, these are inevitable hurdles that come with development and must be overcome to leap over the middle-income trap.
Moreover, we have to recognise what remains unchanged. The positive fundamentals of the Brics economies and their tremendous potential for future growth have not changed. The historical trend of their rising stature in the international political and economic landscape also remains unchanged.
Compared with the past, the economic growth of the Brics countries may have dropped somewhat from its record high. But compared with other countries in the world, their speed of growth remains at quite a high level, particularly when compared with that of the developed countries.
Over the past decade, the Brics countries have accounted for more than 50 percent of world economic growth. According to the International Monetary Fund projections, the average growth rate of the Brics countries between 2015 and 2020 will continue to outpace the world average, which means that they will remain important drivers of world economic growth.
Internationally, the Brics countries have been profoundly affected by inadequate global demand, lacklustre trade and investment, and weak commodity prices.
Domestically, as they press ahead with economic transformation and upgrading through proactive policy readjustment, they have to pay the price and experience the growing pains. However, with the attainment of growth, better quality and high efficiency, their economic structure will be improved and their momentum will be stronger.
In recent years, co-operation among the Brics countries has grown, with far greater depth and breadth than that in the inception period.
With the participation of South Africa in particular, the Brics members cover four continents and span the north and south hemispheres.
Having such growing influence and appeal, Brics has become a major force in international relations and an active player in the building of international systems.
The Brics countries have launched the New Development Bank and the Contingent Reserve Arrangement.
These two flagship programmes fully testify to the ability of Brics countries in carrying out effective co-operation.
We are convinced that as long as the Brics countries pull in one direction and uphold the spirit of openness and inclusiveness, their co-operation will embrace an even brighter future.
The numbers:
* 15 – the number of years since the founding of the Forum on China-Africa Co-operation (Focac).
* over $220 billion – the amount |of trade between China and Africa, measured last year.
* $30 billion – the amount surpassed in Africa by China’s investment |stock.
* 20.5% – the share of China-Africa trade in Africa’s total foreign trade.
* 3 800 – the number of kilometres of railways in Africa that have Chinese financing.
* 4 334 – the distance in kilometres of Chinese-financed roads in Africa.
* more than 200 – the number of schools established with Chinese assistance in Africa.
* 5 – the number of meetings held between Chinese President Xi Jinping and President Jacob Zuma this year.
* $60.3 billion – the amount of bilateral trade between South Africa and China, measured last year.
* 40-fold – the increase in trade between South Africa and China, over that of 1998, when diplomatic ties were established.
* $12 billion – the stock of Chinese investment in South Africa.