Aaron Back of India Real Time reports that Brazil, Russia, India and China have invited South Africa to join their group of emerging economies referred to as the BRIC possibly changing that acronym to BRICSA.
Aaron asks how South Africa could join the BRIC when the “rainbow nation” lacks the main unifying characteristic of the group: a fast-growing economy.
However, my answer to Aaron is that India Real Time may have missed the fact that Brazil’s economy was also sluggish until China became a major trading partner. Now Brazil is growing at about 8% a year.
Another factor is that China is now South Africa’s largest trading partner, and Radio Netherlands Worldwide says South Africa (unlike the US) enjoys a trade surplus with China that may only grow. The Chinese ambassador Zhong Jianhua, says that it is the warm diplomatic ties between China and SA since 1998 matched by growing economic engagement, which has put SA among China’s top three African trading partners.
South Africa also has another alternative to a fast-growing economy. The CIA says, South Africa is rich in these natural resources — gold, chromium, antimony, coal, iron ore, manganese, nickel, phosphates, tin, rare earth elements, uranium, gem diamonds, platinum, copper, vanadium, salt, natural gas.
The South African Guide says, the mining industry is one of the most productive in the world and raw materials make up about 60% of the country’s exports… South Africa is also the single country in the world to produce fuel from coal.
Then the BBC reports that South Africa faces major problems. Many South Africans remain poor and unemployment is high—about 25%.
After all, what South Africa has, China needs to continue the growth of its middle class, and it was these same factors that caused China to become Brazil’s major trading partner. As the trade surplus grows in South Africa’s favor, unemployment will shrink.
______________
Lloyd Lofthouse is the award-winning author of the concubine saga, My Splendid Concubine & Our Hart. When you love a Chinese woman, you marry her family and culture too.
If you want to subscribe to iLook China, there is a “Subscribe” button at the top of the screen in the menu bar.
Posted by Lloyd Lofthouse 
iLook China 