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.

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IIndustry of the Republic of

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