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Premier gives South Africa assurances on textiles

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China assured South Africa late Wednesday it would restrict its textile exports to the African nation as part of its efforts to resolve the controversial issue.

Addressing a news conference in Cape Town, China Premier Wen Jiabao said China would not seek to take over the market share of other countries by simply enlarging the scale of its textile production.

"We are willing to take measures to restrict China's export of textiles to South Africa in order to ensure the stability of the textile market in this country," said Wen, who was earlier welcomed with full military honours and a 19-gun salute.

He added China would continue to honour World Trade Organization rules while doing its best to help affected countries enhance their own textile production capacity.

Wen jetted into Cape Town from Angola on the fifth leg of a seven-nation African tour Wednesday afternoon for an official visit.

The Chinese premier told reporters he and South African President Thabo Mbeki had reached "full understanding and accommodation" on the textiles issue.

"We both agree that the issues in the textile trade will in no way compromise the overall economic relations and trade between the two countries," Wen said.

South Africa is China's biggest trade partner on the continent. According to the statistics from the Ministry of Commerce, bilateral trade reached US$7.27 billion last year, an increase of 23 per cent year-on-year.

Following official talks on Wednesday night, Wen and Mbeki witnessed the signing of 13 agreements between the two countries on partnerships in such fields as economy, trade, national defence and agriculture.

Among the pacts is a document on deepening strategic partnership between the two developing countries.

The Chinese premier also announced China will give 20 million yuan (US$2.5 million) in economic assistance to South Africa for human resources training programmes.

Mbeki hailed the long-standing ties between China and Africa, which he described as having a history of comradeship and support.

"China has always insisted that its own involvement in the continent will be determined by what Africans themselves want," Mbeki said.

"I have absolutely no doubt that China will consistently respond positively to such matters as the African continent will place on the agenda."

Before leaving for Tanzania yesterday, Wen co-hosted the China-South Africa Business Co-operation Forum with Phumzile Mlambo-Ngcuka, the vice-president, in Cape Town.

The forum was aimed at exploring investment opportunities and challenges in the booming Chinese economy.