VZCZCXRO2805
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSA #2012 2790909
ZNR UUUUU ZZH
R 060909Z OCT 09
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 9774
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHOR/AMEMBASSY GABORONE 5551
RUEHMR/AMEMBASSY MASERU 2913
RUEHMB/AMEMBASSY MBABANE 4586
RUEHWD/AMEMBASSY WINDHOEK 5048
RUCPDC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS PRETORIA 002012 
 
SIPDIS 
 
USTR FOR BILL JACKSON; COMMERCE FOR JED DIEMOND 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EIND ETRD SF
SUBJECT: CHINA NOW SOUTH AFRICA'S LARGEST EXPORT MARKET 
 
¶1.  (U)  Summary.  China was South Africa's largest export 
market in the first half of 2009, according to the South 
African Revenue Service.  End Summary. 
 
¶2.  (U)  China has become South Africa's largest export 
market and biggest trading partner.  Total bilateral trade 
between China and South Africa reached R61.9 billion ($8 
billion) between January and July 2009, according to the 
South African Revenue Service. Total trade with the U.S. was 
only R42.1 billion ($5 billion) during the same period. 
South Africa imports appliances, clothing, footwear, and 
plastic products from China.  Iron ore, gold, copper, chrome, 
wine, timber, and paper pulp are South Africa's primary 
exports to China.  The data below is from the South African 
Revenue Service. 
 
South African Imports (Billions of Rands): 
                           US   China  Total Imports 
Jan - June 2009 (Rand)    23.2   35.2      27.1 
Jan - June 2008 (Rand)    25.6   36.2      34.2 
 
South African Exports (Billions of Rands): 
      US   China  Total Imports 
Jan - June 2009 (Rand)    18.8   26.4     253.8 
Jan - June 2008 (Rand)    32.1   17.5     303.7 
 
¶3. (U)  Chinese Ambassador Zhong Jianhua told leading 
financial newspaper Business Day that the warm relationship 
between the two countries was matched by growing economic 
engagement that put South Africa among China's top three 
African trading partners. 
 
¶4.  (U) Comment:  Exports to the U.S. have plummeted since 
the onset of the global financial crisis, causing the U.S. to 
lose its place as South Africa's number one export market. 
While the China market has remained comparatively robust, 
Minister of Trade and Industry Rob Davies recently remarked 
that trade with China is structurally imbalanced because 
South Africa exports commodities while China supplies 
value-added manufactured goods.  Davies noted that Chinese 
officials agreed to negotiate to rectify the imbalance.  End 
Comment. 
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