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    BCCI LUNCHEON FOR TOP DELEGATION FROM THE PEOPLE'S REPUBLIC OF CHINA
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The Consulate General of the People’s Republic of China, arranged a meeting in Bloemfontein with the executive of the Bloemfontein Chamber of Commerce and Industry (BCCI) towards the end of 2007. After this meeting, it was decided that BCCI will work closely with the Consulate and to be the platform from where business, investment and trade information will be shared between Bloemfontein and the People’s Republic of China, especially the twin cities of Wuhu and Nanjing.

“Be friendly with the country that you want to invest in your city or country”. These were the words of Mr Zhong Jianhau, Ambassador of the People’s Republic of China

On Tuesday, 19 February, BCCI held a business lunch – sponsored by Sanlam - for the, Ambassador, the Consulate General, Fang Li and 5 people from the Chinese Embassy and Consulate. Also present was Dr Jason Feng, chairperson of the Chinese Association in the Free State. The luncheon was attended by 26 people – mainly from the banking and investment sectors.

The message from the Ambassador was clear: he warned South Africa not to put too many obstacles in the way of overseas investors. Issues he raised were:

• That it is very hard for a foreign business person to get an appointment with a mayor or high official in the city or town they want to invest in. This is the total opposite from the business culture in China, where officials will go out of their way to meet new business people when they visit the city to determine how they can be assisted.

• Chinese investors also do not understand the labour regulations in South Africa and regularly find themselves in the middle of disputes and labour action.

• Other factors dampening Chinese investments are the low productivity level of the local labour force, trade union activities, and the high cost of transport in South Africa.

He told the meeting that The People’s Republic of China also experienced a major energy crisis in 2002 – 2003. This was also a critical situation that paralyzed the Trade Capital, Shanghai. They sorted out the problem in 2 years. He invited several South African officials to visit China to observe how China dealt with the problem.  

Although it is cheaper to manufacture products in China, the cost of exporting complete assembled products to South Africa is very high. Often Chinese ships have to wait in the congested Durban harbour for days before they could be off-loaded. It is for that reason that a high number of Chinese manufacturers are looking for suitable places in South Africa where they can build plants where they can assemble components for TVs, CCTV Surveillance cameras and other electrical appliances like fridges, microwaves, etc.

Other fields of interests are

• Cement plant(s) in the Free State,

• an automobile manufacturing plant for family cars,

• and mainly the manufacturing of energy-saving devices like solar power.