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FRAMEWORK AGREEMENT
BETWEEN
THE DEPARTMENT OF TRADE AND INDUSTRY OF THE
REPUBLIC OF SOUTH AFRICA
AND
THE NATIONAL DEVELOPMENT AND REFORM
COMMISSION OF THE PEOPLE'S REPUBLIC OF CHINA
FOR
THE DEVELOPMENT OF COOPERATION ON
PRODUCTION CAPACITY
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The Department of Trade and Industry of the Republic of South Africa and the National
Development and Reform Commission of the People's Republic of China (hereinafter referred to as
"the Pa11icipants");
IN VIEW OF the in-depth development of the Partnership established between the
People's Republic of China and the Department of Trade and Industry of Republic of
South Africa (hereinafter referred to as "the Countries");
BEARING IN MIND the important consensus reached by the leaders of the Countries to
develop cooperation on production capacity;
RECOGNISING the great potential for economic cooperation between the Countries and
the recurring interests of companies from the Countries to promote cooperation;
IN ORDER TO make best use of complementary advantages, Improve the level of
investment and cooperation on production capacity between the Countries;
BEARING IN MIND the principles of mutual respect, equality and equal benefit, with
friendly discussion, the Parties mutually consent to execute this Framework Agreement
under the following understandings:
Paragraph I
CO-OPERATION
The Pa11icipants will promote the cooperation on production capacity of companies and
financial institutions from the People's Republic of China and the Republic of South
Africa, in accordance with their respective national laws and policies.
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Paragraph II
AREAS OF CO-OPERATION
The Participants will promote cooperation on production capacity in areas, which include
but are not limited to, the following:
1. Industrial Infrastructure:
(a) construction and operation of industrial infrastructure, including,
Special Economic Zones, Industrial Parks, railways, Energy
generations, telecommunications, etc;
2. Manufacturing Development:
(a) equipment manufacturing;
(b) electronics; and
(c) texti les;
3. Mineral Processing:
(a) metallurgy and material, including iron and steel, nonferrous metal, glass-
making, cement, platinum, coking coke, etc; and
4. Industrial Development Support Systems:
(a) capacity building and skills development; and
(b) industrial clusters.
Paragraph III
PROJECTS OF CO-OPERATION
The Participants will encourage companies in their respective Countries to carry out
projects ofcooperation on production capacity, in compliance with thei r respective laws
and established procedures, through various types of instruments, including but not
limited to the following:
• Investment;
• Merger and Acquisition (M&A);
• Build-Operate-Transfer (BOT);
• Public Private Partnershi p (PPP);
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• project contracting; and
• equipm ent export.
The Participants will encourage their financial institutions to provide servicessuch as
financing, co-financing, guarantee and long-tetm insurance for hi-lateral cooperation on
production capacity.
Paragraph IV
ESTABLISHMENT OF STEERING COMMITTEE
The Participants will endeavor to establish the Steering Commi ttee for Cooperat i on on
Production Capacity between Chi na and Republic of South Africa (herei nafter called the
"Commi ttee") to execute this Framework Agreement.
The competent authority for the People's Republic of China will be the National
Development and Reform Commission ("the NDRC"), with the participation of the
Mi ni stry of Forei gn Affai rs; and the competent authority for the Republic of South Africa
will be the Department of Trade and Industry ("the dti'~, with the participation of the
Department of International Relations and Cooperation.
The Committee will be co-chaired by a leader of the NDRC and by the Director
General of the dti.
The Committee may invite other relevant agencies and entities from the respective
Countries, which the Committee may deem appropriate, to participate in related
activities.
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Paragraph V
FUNCTIONS OF STEERING COMMITTEE
r-rhe Committee will be responsible for the functions listed below, which list will not
be construed as exhaustive:
1. identifying the priority areas for cooperation on production capacitybetween the
Countries;
2. coordinating and promoting the priority projects of investment andcooperation
on production capacity;
3. studying the ways and measures to develop the cooperation on the areas
mentioned, including proposal of policies and suggestions on the promotion of
cooperation on production capacity;
4. organising joint forums, seminars, and project promotion events as well as
collaborating on specific subject studies;
5. encouraging investment and financing activities for companIes and financial
institutions in the respective Countries; and
6. supervising the effective implementation of the projects under this Framework
Agreement.
Paragraph VI
MEETINGS OF STEERING COMMITTEE
The Committee will meet as necessary, altelnating venues between China and South
Africa, unless the Participants agree on an alternate venue. On the occasion of the
meetings, the Committee will review and analyse the progress of the work performed
and the results achieved since the last meeting and will set a new agenda.
The Participants may agree to hold meetings by video-conference.
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Paragraph VII
SECRETARIAT OF STEERING COMMITTEE
The Com mittee will be supported by a Secretariat, in charge of com muni cation and
coordination under this Framework Agreement. The Secretariat on the Chinese side
shall be located within the Department of Foreign Capital and Overseas Investment of
theNDRC, while the Secretariat on South African side will be located within the dti.
Paragraph VIII
COSTS OF COOPERATION
Each Participant will bear its own costs of their communication and cooperation
activities when implementing this Framework Agreement, unless otherwise agreed.
Paragraph IX
DISPUTE RESOLUTION
Any questions or disputes arising from interpretation or implementation of this
Framework Agreement will be resolved by direct consultation of the Parties.
Paragraph X
IMPACT OF FRAMEWORK AGREEMENT
This Framework Agreement will not affect the interpretation andimplementation of
any other agreement between the People's Republic of China and Republic of South Africa.
Paragraph XI
ENTRY INTO FORCE AND VALIDITY
This Framework Agreement will enter into force on the date of signing thereof and
remain valid for an initial period offive (5) years, whereafter it will remain in force unless
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one Participant tenninates it by giving the other Participant at least three (3)months prior
written notice of such telmination.
This "Framework Agreement may be amended by mutual consent of the Parties. Any
amendment will be in writing, specifying the date of its entry into force.
The termination of this Framework Agreement will not affect investment projects that are
currently in progress.
on (}2· \, '(.~'(; in two original copies in the Chinese, English and
__ languages, all texts being equally valid. The English version will prevail if there is
any inconsistency.
IFor the Depart ent of Trade and
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