China Group BRICS Final.docx - BuildingBRICBridges

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Dec 3, 2012 (4 years and 8 months ago)

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Group Final Project

MLS 620
-
01D Tpcs: Emerging Powers

UNCG


Participants

Barbie Bell


China
-
Brazil Bilateral Meeting Report


Brenda Caldwell

--

Policy Recommendations, Rise of Brics and China, PowerPoint


Dolores Haugen

--

China
-
India Bilateral
Meeting Report, Introduction


Ann
-
Kristine Thrift

--

China
-
Russia Bilateral Meeting Report, China’s Contributions


Sarah Van Horn

--

China
-
South Africa Bilateral Meeting Report






CHINA PREPARES FOR T
HE
2012 BRICS SUMMIT IN

INDIA





Barbie Bell




Director
-
General
Latin American Affairs
, Foreign Ministry


Brenda Caldwell




Director
-
General Policy Planning Department
, Foreign Ministry





Dolores Haugen



Director
-
General Asian Affairs
, Foreign Ministry





Ann
-
Kristine Thrift

D
irector
-
General
European
-
Central
Asian Affairs
, Foreign Ministry





Sarah Van Horn



Director
-
General African Affairs
, Foreign Ministry





(The Ministry, 2012)





2012 BRICS SUMMIT:
Letter to
/from

Chinese
Officials




Ladies and Gentlemen,


As we prepare for the 2012
BRICS summit in New Delhi I wish to remind you of how far we have come. We
could not anticipate in 2001 when Mr. Jim O’Neill of Goldman Sachs named the emerging markets of B
razil,
Russia, India, and China “BRIC countries”

how our fortunes would rise and ou
r influence in global affairs
would grow.

O
ur countries have risen to the challenge and changed the dynamics of the world through our
demand for a larger role in the global arena.
Collectively, our countries hold 40 percent of the world’s
population, 25
percent of the global GDP, $4.93 trillion of foreign reserves and are considered to be on the
brink of long
-
term growth. O
ur

BRIC alliance has had summits
in
2009,
2010 and 2011
that
have produced
recommendations affecting the work of major economic and po
litical institutions, such as the International
Monetary Fund (IMF) and the Group of 20 (G
-
20), facilitating the transition to multi
-
polarity. The official
addition of South Africa to our coalition in 2011

has only strengthened our partner
ship and expanded

our
influence

(BRICS: The New World Powers
, 2012
)
.


The Director
-
General, Li Huilai, has told me that your advice in planning for IV BRICS in India will be
invaluable. Based on your teams experience as a part of the Foreign Ministry and your contacts with your
international counterparts and business contac
ts, I have already appointed each of you to be a part our
delegation

to India for IV BRICS. The Ministry has scheduled a series of meetings that you will conduct with
the representatives of the Brazilian, Russian, Indian and South African governments, alo
ng with people from
international finance and trade interests. Our primary goal is to develop a strategy that maximiz
es China’s long
-
term interests

(UNCG
, Emerging Powers

Learning Area
, 2012
)
.


I look forward to reviewing your recommendations and your age
nda
for the meeting in India later this year.



Hu Jintao


President

of the People’s Republic of China


(The Ministry, 2012)







2012 BRICS SUMMIT: Letter to/from Chinese Officials






Dear
Hu Jintao:

President

of the People’s Republic of China



It is
with great pleasure that our team of Directors of the Ministry of Foreign Affairs of the People’s Republic of
China presents to you the following for your consideration and approval for use at IV BRICS summit in India
this year.


We have included a tentati
ve agenda
/talking points

for the summit, information from bilateral meetings with all
of the other BRICS countries, research on the history of the bloc, China’s primary contributions to the bloc
,



Sincerely,


Li Huilai

Director
-
General Ministry of
Foreign Affairs People’s Republic of China






(The Ministry, 2012)












Agenda
for BRICS 2012

The

imperative issues are:

I.

The Global Economy

A.

BRICS leadership in the global economic crisis.

B.

Immediate problem of inadequate growth in developing
countries.

C.

International cooperation, planning and macroeconomic and fiscal
policies
.

D.

Reform of the international finance system.

E.

Work with the G20 and the G8 in an action plan to help the slowdown in global economic growth.

F.

The US budget and r
ecession eff
ects on the global economy.

G.

BRICS and all other international bodies
need

to address transparency and accountability.


II.

Political developments in the
w
orld and their impact on peace and stability in the world.

A.

Situation in the
Lybia.

B.

Situation in North
Africa
.

C.

Solution in Syria through peaceful negotiations
.

D.

Concerns about peace in the Gulf region
.


III.

Trade Agreements

A.

Resist all forms of protectionism

B.

Recognize the pivotal role in furthering progress in the Doha
Development Agenda with the WTO
.

C.

Discuss
BRICS role in WTO and the WTO monitoring of the implementation of multilateral trade
disciplines.

D.

Continue the Copenhagen Climate change negotiations
.


IV.

Agriculture

A.

Commitment to enhance coordination and communication with international and regional
organizations.

B.

Enhance UN roles in helping BRICS enhance food security through improved food production.

C.

Establish an alliance for agricultural research and technology cooperation and innovation.


V.

Health, Science and Technology Innovation

A.

Ways to promote c
ooperation within BRICS countries in science, technology and innovation.

B.

Multilateral implementation of innovation projects in microelectronics, nanotechnologies, biotechnology,
energy efficiency, renewable energy and climate change.

C.

The establishment of a

working group on cooperation in the pharmaceutical industry.

D.

Support UN agencies and programs on health and improve health technology and financing to ensure the
public health of BRICS countries


VI.

Security at the summit

A.

Protection from electronic
surveillance

B.

Protection from press leaks

C.

Not including US and EU members


even as unofficial observers.


VII.


Business and Industry

A.

US
and European
company expansions into BRICS countries

B.

Energy production


(Bracht, 2012)





The History of the BLOC and
CHINA

The BRICS alliance is an alliance between Brazil, Russia, India China and South
Africa.

The growth of the middle class, the world’s continued dependence on
natural resources and the global recession are among the main factors. The BRICS
alliance became co
ncrete with its agreements between the countries involved. The
first BRICS summit was held in 200
8

where it began work toward common
approaches to issues that were important to global finance and economics

BRICS
held summits in 2010, 2011 and now

we are p
reparing for one in 2012. These countries combined represent
almost half of the world population, a quarter of the global GDP, $3.93 trillion in foreign reserve
s and
promising economic growth

(BRICS
:

The New World Powers
, 2012
)
.


The world order has
changed. The international world was controlled by a bipolar system typified as the Cold
War of the US and Russia up to the 1990s. Subsequently, there was a period of unipolar domination by the
west. America’s global power is evidence
d

by its military spending, share of the global economy and power
with international bodies. Unipolarity has given way to open a path for a multipolar world. No longer is there a
singular superpower that controls the whole world because an explosion of gro
wth and power is emerging in the
world around it. What emerged in the 2000s
were

the powers of the US, China and the European Union. Along
with the big three second world countries are beginning to emerge as super powers bringing in the next stage of
mult
ipolarity to the world. These so called second
-
world countries of Eastern Europe, Asia, South America and
the Middle East have grown in power because they hold a majority of the world stock exchange reserves, have
spending power, and are be
coming corporat
e finance giants

(Khanna, 2008)
.



Multipolarity brought the idea for the alliance from O’Neill’s Goldman Sachs’ paper on global economics
titled, “Building Better Global Economics Brics”. He argued that these countries should join together because
their
economic growth could help change world policy making. When O’Neill’s concept didn’t catch on right
away he wrote another paper called “Dreaming with Brics: The Path to 2050” where he stated that he thought
this group could overtake the West and become th
e largest group of economies. Business investors began to buy
assets of these countries and facilitated their growth. The four BRIC countries used O’Neill’s idea to forge an
alliance. The first meeting of the heads of these countries was mostly symbolic
but they did agree to cooperate
with each ot
her to gain influence as a bloc
(Tett
, 2012
)
.


Out of the ashes of 9/11, the BRIC alliance was forged because of the changes in global capitalism and the
dominance of the west.
There are many factors for the rise

of BRICS. The GDP growth of these countries has
shown a high per capita growth. The BRICS countries have become the largest source of labor in the world.
China and India have brought their trade in manufacturing and services, while Russia and Brazil br
ought their
expertise in commodities. The growing middle class in these countries has contributed to the rise through the
work force of
the bloc
. These countries have created a favorable political environment and flourishing domestic
markets to aid them
in their pursuit of world power. The economic surpluses in BRICS countries have given
them a positive business environment
,

which is aided by their unique marke
t potential and characteristics
(Tett,
2012)
.


China has been called the “rising dragon,” and t
he most influential of the BRICS countries. China has seen
economic growth for the past three decades. In the post Mao era, China’s government implemented reforms
that brought a healthy, educated labor force, gave it economic surpluses, better fiscal pol
icies, and long term
growth. These reforms helped China to decrease poverty to less than 20 percent of its population. On its
business front, china put capitalist development reforms in place to support its high
-
tech industries. High
education rates for

the population have led to a large pool of qualified professionals in the technology, research
and

nanotechnology fields in China
(Tett
, 2012
)
.






China’s Plans for the Future

China plans to diversify its exposure to US Treasuries by investing in foreign markets.
China will
upgrade

industry

in the service sector to create opportunities for foreign
companies to invest in China. China will invest in the development of its cities

to
increase productivity and consumption, create jobs and continue urbanization. China
will focus on IT, biotech, environmental issues and high value manufacturing.

China’s
use of long
-
term planning has also been a factor in its success as a country. C
hina has
limited natural resources; therefore it has invested in other countries to secure access to
mining rights and natural gas fields. China’s cultivation of scientific and technical
researchers will focus on rare earths. China’s desire for sewing ma
chines, wristwatches and bicycles has led it
to grow domestic and world manufacturing markets.

(The BRICs: propping up the global economy, 2012)
.

Going Green
.

China will develop green technologies. China will find new renewable energy sources to use
such

as hydro, nuclear, solar, wind, and biomass. China will find green energy vehicles to use to reduce oil
usage.

Economy.

China will increase domestic
consumption.

China will help companies, entrepreneurs and business
industry leaders by giving them acce
ss to the growing market.

Food.

China’s growing middle class and urbanization has created modern supermarkets. While fresh food is
still a major part of the Chinese culture, supermarkets are finding a place in the market because of people’s
desire for
food safety and health. China is developing its local food industry with local options and choice
given to local consumers.

The China Difference
. China is a major contributor to BRICS. China has a population of 1.33 billion, a GDP
of 4, 965billion, has
had GDP growth of 10.2% from 1990
-
2008,
has a projected GDP from 2011 to 2014 of
10.3%, and has merchandise exports of 1,201 billion. China’s history is a contributing factor to its recent
prosperity. The Chinese civilization has been a leading power in
the world for the past two millennia providing
influential inventions in the world such as gunpowde
r the compass and paper

(Nye, 2008)
.










C
HINA’s Contributions and Challenges

General Contributions
.
China has much to offer the alliance of BRICS. China

is a very large country. The factors of
production


land and energy


are both cheaply gotten. There is a large well educated cheap workforce. There is high
investment to the GDP by the people of China through the cultural value of saving. There are
national capitalism and
macroeconomic policies that create a fixed exchange rate for their currency and cheap capital by state owned banks. With
the accession to the WTO in 2001, the WTO lifted Chinese export quotas and exports from China increased. Chin
a’s
future growth is likely to come from those investments being made today in technology and cars. China has become the
world’s largest exporter of goods and accounts for almost 10 percent of the world exports. China has invested in
developing countries

offering aid to countries in Africa and elsewhere. China is a preferable trading partner with ma
ny
countries

(Nye, 2011)
.

Economic

Contributions.

There is no denying that China has emerged as a major world economic power. China’s share
of voting power i
n the World Bank has increased 1.3 percent since 2010. China has passed the expectations within
BRICs. China’s policy to reduce their global oil demand by half by 2030 would reduce the global oil demand by 20%.
China has contributed to the global econom
ic landscape more than the other BRICS countries. China created jobs in
BRICS countries and regions. China’s rise to power has brought prosperity to the other BRICS countries (Jim O’Neill
and Anna Stupnytska, 2009).

Political

Contributions.

Because China

has Confucian ideals and a meritocracy, China is an example to the rest of the
world. The leadership of China has always been more about trying to be moral and standing up for others. China
supports the peaceful development of all countries. If necessa
ry we will ally with others and use our vote in the UN
Security Council to promote a world of sovereign states unhampered by hegemonic states that wish to force their policies
on others. The strong central government of China allows it to adjust rapidly t
o the changing global world (Gifford,
2007).

Social/Cultural Contributions
.

“China's peaceful development is not water without source, or tree without root. Rather,
it is based on China's long and profound historical and cultural tradition. Even someone r
emotely familiar with China's
history would know that behind today's China is a history of over 5,000 years” (Dai, 2011). It is a proud history that has
permeated the world and finds resonance across the globe. The Chinese diaspora is over 40 million and

provide a shared
identity to the rest of the world (Jacques, 2008). From this diaspora the Chinese are able share its culture with
communities around the world. As Joseph Nye put it “culture can be an important power resource.” China’s cultural
attrac
tion permeates the world, more than any of the other BRICS countries. In this way, China can use its soft power
influence to furt
her the BRICS agenda worldwide
(Nye, 2011)
.

Leadership

Contributions.

The country already has great influence in Asia and has
ties to every continent. It is the
natural leader of BRICS because it has the greatest world economic influence, is culturally integrated in the world, has a
stable government, and the largest population. However it has no desire to dominate the agenda o
r conversation but to be
active partners with the other BRICS countries in promoting “peaceful dev
elopment”

(Nye, 2011)
.

Challenges
.
China also has many challenges ahead of it. China has been impacted by the global financial crisis that
occurred. China’s

merchandise export market has decreased significantly. The urban unemployment rate for China has
risen and migrant jobs have decreased. China has challenges will balancing its need for growth and jobs against reducing
its dependence on oil, growing its e
conomy and increasing production of domestic companies. The lack of flexibility with
exchange rates and government control of institutions makes investment from others less attractive. China relies too
much on the agricultural
productivity of other count
ries
(Nye,

2011)
.




CHINA BRAZIL BILATERAL MEETING REPORT


Trade

and Currency
.
Mutual concerns about perceived and real trade
imbalances within domestic markets will be addressed and balanced trade
agreement negotiated to curb protectionism. (
Brazil’s Trade Policy:
Seeking
Protection
, 2012
)
.

PRC assures Brazil’s sovereignty concerns via the
creation of partnerships for purchases of farmland
and other markets China
moves in

to quell issues of

colonialism raised by
citizens

(
Phillips, 2010)
.

US dollar issues remain a concern and Brazil and PRC along with the G20,
the IMF and the IMS reforms will address international monetary reform
and seek a greater voice for
emerging markets such as Brazil

(
Huan
g
,
2011
)
.

Discussions of a separate currency exchange within either the IMF in bonds or SDR’s or other
alternatives to the US dollar are necessary but must be tempered with caution as both
Brazil and PRC hold large
USD reserves, although moves to reduce those reserves are in place. A stable dollar is best for everyone but we
must protect ourselves and create a multi
-
polar global market that is not as sensitive to the
effects of the US and
E
U
market

(Mallaby & Wethington, 2012)
.


Economic Growth

and Infrastructure
.

The China
-
Brazil relationship is rapidly
deepening as China and Brazil
both are playing a greater role in the global economy. China has the 2
nd

largest economy in the world and
Brazil has the 9
th
. Brazil has experienced more volatility, more indebtedness and external pressures than China.
Braz
il’s economy has been heavily affected by the price of oil

(The Brazilian model).

PRC can offer substantial
assistance and increased investment in the areas of Brazil’s infrastructure; building roads and adding mass
transit in the
form of high
-
speed trains

and air transport infrastructure. Brazil and PRC will continue mutually
beneficial cooperation and collaborative efforts on projects such as the Earth’s Resource Sa
tellite and the Acu
Super

(
Phillips, 2012
)
(Falerios, 2011).

Political Relations
.

Both Brazil and China have strong interests in improved and more secure access for
exports

to the OECD. Common positions exist for foreign direct investment. They both support climate change
negotiations. They both oppose protectionism. There are areas

where challenges persist in the China Brazil
relationship whereas China did not support Brazils request for a permanent position in the UN Security Council
and China still challenges
Brazil’s

competitive trade position in North and Latin American markets.

They both
are in WTO negotiations on the Doha Development Agenda. China and Brazil agree about the Copenhagen
negotiation on global climate change policies. China and Brazil have both vowed to make efforts to implement
the two count
ries’ Joint Action P
lan

(
China, Brazil to further boost

strategic partnership
, 2009
).


Energy.

Brazil is abundant is raw materials PRC needs to build and maintain its infrastructure, specif
ically oil,
iron ore and
copper

(Sweig, 2010)
.

Mutually beneficial trade agreements and collaborative efforts with respect
to domestic market issues will

be outlined. PRC will become a viable and secure importer of Brazil’s newly
found oil reserves as well as partnering in pursuit of biofuels and sugar cane ethanol and o
ther alternative
energy sources

(
Mining and energy fuel relationship
, 2011
)
.

PRC and Brazil have mutually beneficial interests
in Brazil’s agricultural commodities and will remain a dominant customer of Brazil’s exports of soybeans, soy,
beef and pork to help f
eed the citizens of the PRC.


Green Technology and Climate Change Initiatives
.

China and Brazil participating in acknowledging climate
change issues and potential for economic potential at the same time. Initiatives such as the Green Freight
Technologies
promoted by The World Bank in attempting to streamline and green up truck transport, the main
form of transport, within the two countries adding to green house emissions. China invested $54b i
n low carbon
technology in 2010

(
Lewis, 2011
).





C
HINA RUSSIA BILATERAL MEETINGS REPORT


Trade
.

China is in 1
st

place among Russia’s trading partners, while Russia is 14
th

among China’s trading partners (Blanchard, 2011).

Of particular concern is the
Altai pipeline. The government goal is to “increase the share of natural gas in its
energy mix to 8.3% by 2015 from 4% in 2009” (Jiang, 34). This requires new
sources of natur
al gas and Russia is Asia’s largest natural gas producer. Since
2004 the Altai pipeline has been stalled because Gazprom has not moved
towards building the infrastructure for the pipeline. Russia also refuses to bring down the price of gas from
$350 per

1000 cubic meters to the $250 per 1000 cubic meters the government is willing to pay (Weitz, 2).
China’s current consumption of natural gas and the projected consumption of natural gas makes the need to find
additional supplies imperative. The time com
mitment in building the infrastructure for the Altai pipeline makes
it imperative that the deal be closed soon.


Economic Growth
.

China

s economic growth is the highest whereas the Russian economic growth has been the
slowest. According to the Russian sta
tistical agency, Russia

s GDP rose slower than China’s has. The
downturn of oil prices, the poor investment climate and mismanagement of the economy hurt Rus
sia during the
global recession

(The US, India, China and Russia: economic heavyweights
shape up f
or 2010).


Political Relations
.

China and Russia agree that it is important to adhere to the treaty that they signed


Treaty
on Good
-
Neighborliness, Friendship and Cooperation. They have agreed to a two
-
way trade that has been
increasing each year. They have agreed to start a China
-
Ru
ssia oil
pipeline

and have engaged in strategic
security consultations. These
countries

have agree
d

to cooperation in energy
-
saving, environmental prote
ction
and disaster prevention

(Tao, 2010)
.

The most important treaty between our two countries continu
es to be the
Russia
-
China Friendship Treaty. Many of the goals set forth in the initial writing of the treaty in 2001 have
been accomplished
.
Th
e Shanghai Cooperation Organization t
reaty has fulfilled its purposes but continues to be
an important precede
nt in cooperation and a public relations boon for both countries proving the two can
succeed in common goals.

The greatest show of unity and power China and Russia can portray to the world is
to act in tandem as members of the United Nations Security Coun
cil. As permanent members of the UN
Security Council, China and Russia have the responsibility and opportunity to promote Asian ideals to the
world by standing firm against United States hegemony and imperialism.


Energy
.

Recently there was talk of a $1 trillion dollar deal for the Russians to supply
gas to China over the next 30 years, but it failed to happen.
Of particular concern is the
Altai pipeline.
The government goal is to “increase the share of natural gas in its

energy
mix to 8.3% b
y 2015 from 4% in 2009” (Jiang,
34).
This requires new sources of natural
gas and Russia is Asia’s largest natural gas producer. Since 2004 the Altai pipeline has
been stalled because Gazprom has not moved towards building the infras
tructure for the
pipeline. Russia also refuses to bring down the price of gas from $350 per 1000 cubic meters to the $250 per
1000 cubic meters the government is willing to pay (Weitz, 2). China’s current consumption of natural gas and
the projected con
sumption of natural gas make the need to find a
dditional supplies imperative
(Jiang, 2011)
.


Culture/Tourism
.

Both of these countries agree that the cultural and social exchanges between them are an
important part of their relations. These exchanges enhance both countries understanding and trust of the other
one. In 2012 there will be a Russian Tourism Year in Ch
ina and in 2013 a China Tourism in Russia youth
exchange. These countries have worked out an exchange to assist college graduates
in mutually government
funded scholarships for students in both nations. China supports the 2014 Sochi Olympic Winter Games
that
will be hosted by Russia (Xiang)
.





C
HINA INDIA BILATERAL MEETING REPORT


Trade
.

Bilateral trade between China and India has increased 20
-
fold in
the past 10 years. China is India’s biggest trading partner and India is
China’s biggest partner in South Asia.
China is well aware of the current
imbalance in trade between the two countri
es, specifically the dependency
of India on imports of our manufactured goods. According to the East Asia
Forum, in $60 billion dollars of trade in 2010, “China’s exports to India
exceeded India’s exports to China by a wide margin” (Bery, 2011). The
SED wa
s an important first step in addressing issues of market access. It is
well
-
known that India desires an increase in trade in their areas of
expertise, particularly IT and pharmaceuticals.


Economic Growth
.

China and India are likely to remain the two fastest growing countries in the bloc. India is
expected to grow 6.8% and China is expected to grow 8.6% in 2012. It isn’t likely that India will catch up with
China though
(Ying, 2011)
.


Political Relations
.

Both countries stand to benefit from efforts to reign in terrorist activities in the region as
well as tackle world
-
wide cyber
-
terrorism. During Premier Jiabao’ s visit to India in 2010, there was agreement
to open a hotline between the two Prime ministers

(Ying, 2011). We should continue joint efforts to reign in
piracy in the Gulf of Aden and cooperate on maritime security issues
.
It is economically desirable for our two
countries to continue integration through trade. India’s concerns in this area may be

somewhat alleviated
through Chinese investment in infrastructure development, which will increase India’s attractiveness as an
international trade partner. We may also wish to consider easing restrictions on Indian imports in the area of
pharmaceuticals a
nd agricultural products.

China is quickly realizing the opportunities in ‘clean and green’
development and both India and China are under pressure to address their responsibilities in the area of
pollution reduction and climate change. We could make a pow
erful force by combining our scientific and
technological prowess in combating these global concerns.


Energy
.

The South China Sea’s offshore oilfields have captured the attention of both countries. Recently,
India’s decision to explore areas claimed by
Vietnam (through their state
-
owned corporation Videsh Limited)
has led us to assert our sovereignty over the sea and its islands (Bhadrakumar, 2011).

Related to this are general
Energy Security and Procurement

issues between the two nations. Both India an
d China have interests in
acquiring power from Russia, the Middle East, and Africa, which has led to a nationalistic approach on the part
of both countries to securing energy needs. One result of this has been sparring over shipping lanes in the Indian
Oce
an (Lee and Cull, 2010).

Finally, an important source of current and future disputes can be summed up in
one word:
Water.
According to a report from the Carnegie Endowment, “China’s unique status as the source of
transboundary river flows…and its water di
sputes with virtually all riparian neighbors has serious implications
for its major southwesterly neighbor, India” (Chellaney and Tellis, 2011). India believes that China’s extensive
construction of dams and what they view as environmentally unsound use of

rivers poses a significant challenge
to India’s sources of water, a major concern for their fast
-

growing population.


Culture and Tourism
.

Our “Silk Road” nations have a long history of cross
-
cultural exchange. The “China
Festival” and “India Festival”
held in 2010 to celebrate the 60
th

anniversary of diplomatic ties are a good
example of efforts to build goodwill between the people of the two countries and increase opportunities to share
art, music, education, and travel. This could go a long way in bui
lding trust and a d
esire for continued
cooperation

(Ying, 201
1
)
.





CHINA SOUTH AFRICA BILATERAL MEETING REPORT

Trade
.

South Africa is China’s largest trading partner in the
region of Africa. Direct bilateral trade has been going on
here since the 1990s. Adding South Africa into the BRICS
alliance in 2011 will continue to improve this trade
relationship between China an
d South Africa. China
-
South
African trade includes iron ore, copper, manganese, chrome
and diamonds. South Africa is importing textiles from China
(Langeni, 2010). To increase access to these resources China
has invested billions of dollars into building

roads and
factories throughout the African continent. Also, Chinese
banks have opened up in South Africa investing in the economy there (Gill, 2007).

Economic Growth
.

In terms of BRICS countries, South Africa’s population and growth is smaller. The size

of
South Africa limits its capacity of South Africa for economic growth and development. China’s GDP growth
rate is 9.5% and South Africa’s is 4.0% as reported by Global Sherpa for 2011. South Africa is a large investor
in developing countries in Africa

and this makes it a good partner for China. China has invested in South Africa
in an effort to increase its influence and take advantage of the untapped resources available.

Political Relations
.

Diplomatic relations between these two countries was establi
shed in 1998. These countries
have had extensive exchanges about international and regional issues and reached an extensive amount of
consensus. These two countries are both developing countries with much influence in their region. Both
countries insist

on maintaining the rights and interests of other developing countries. They want to establish a
just and reasonable new international order. China has supported South Africa’s struggle against apartheid.
These two countries have entered into the Cooper
ation Accord of Plant Quarantine between China and South
Africa, the Agreement of Animal Quarantine and Sanitary Cooperation, the Agreement of Cooperation in the
Fields of Culture and Art, the Agreement on Avoidance of Dual Taxation and Evasion of Tax and
others
(China
-
South Africa bilateral relations
, 2007
).

Energy
.

China has limited quantities of natural resources that they will need to continue the growth they have
become accustomed to ove
r the last decade. South Africa

and the rest of the African contin
ent offer large
supplies of natural resources that
remain

untapped due to the developing nature of most African countries.
Africa’s oil production is on the rise, currently contributing around 12% of the world’s production. China is also
interested in Afri
ca’s vast mineral deposits, such as aluminum, diamonds, iron ore, and titanium. South Africa
is the largest producer of many of these minerals including gold
(China
-
South Africa bilateral relations)
. South
Africa is also the 6
th

largest producer of carbon

dioxide (Haibin, 2011). China and South Africa need to work
together to develop green energy that will allow both countries to continue the level of growth they have come
to expect

Culture and Tourism
.

The governments of China and South Africa have
agreements on cooperation for
cultural events. Cultural groups and artists from the two countries have exchanged visits and held exhibits in
the past. Several groups of journalist from South Africa have visited China. Artists from China and South
Africa
have had art performances about China (China
-
South Africa bilateral relations
, 2007
).



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