B&R Initiative will revolutionize the way of business

South Africa is China's biggest trading partner on the African continent. Bilateral trade relations have been continuously expanding over the past year, with this year also marking the 20th anniversary of diplomatic ties between the two countries.

Ahead of the 10th BRICS Summit to be held in South Africa from Wednesday to Friday, Global Times interviewed Charles Manuel (Manuel), Minister Counsellor of Economics at the South African Embassy in Beijing, to seek his opinions on bilateral economic and trade relations as well as his expectations of the upcoming summit.

GT: What is the status quo for bilateral trade relations between China and South Africa? How do you view those relations?

Manuel: Trade between South Africa and China has grown exponentially since the two established bilateral diplomatic relations 20 years ago. The bilateral trade volume jumped from 9.4 billion yuan ($1.38 billion) in 1998 to about 237 billion yuan today.

The bulk of South Africa's trade with China is focused on commodities and it is our ambition to export more value-added products to China. We have seen enormous interest and growth of investment of Chinese companies in our manufacturing sector, and Chinese companies are particularly interested in the automotive, renewable energy, electronics and rail sectors. Other new growing points include agriculture, chemicals and the ocean economy.

GT: How do you look at Chinese enterprises' investment and businesses in South Africa?

Manuel: The relationship between South Africa and China is based on three pillars: friendship, trust and mutual respect. This explains why more than 600 Chinese companies have been set up in South Africa and why we have more than 300,000 Chinese nationals living and working in South Africa. Our expectations are very simple: we want sustainable partnerships with China and expect our Chinese partners to support our industrialization drive as well as our regional integration drive.

GT: What opportunities will the China-proposed Belt and Road (B&R) Initiative bring to South Africa?

Manuel: We believe that the B&R Initiative is a game-changer and will revolutionize the way business is done. It is already serving as a catalyst for industrial development and trade in many emerging economies. The B&R Initiative will open existing markets and create new markets.

GT: The upcoming BRICS Summit will soon be held in South Africa. What role does the BRICS mechanism play in the current global economic climate? What are your expectations for the summit?

Manuel: The changing dynamics in the global economic governance system and the multilateral trading system is an immediate challenge that BRICS countries will have to confront.

We are keen to see how funding mechanisms such as the New Development Bank and other funding instruments developed by China will support South Africa's development goals. BRICS trade ministers have discussed a number of issues including e-commerce, small- and medium-sized enterprises and intellectual property rights protection. It is our expectation that all of the abovementioned areas will facilitate increased trade between the BRICS countries.