CAPE TOWN, June 21: China secured a series of agreements with South Africa and Angola on Wednesday to strengthen political ties and bolster trade relations with the key African nations.

The pacts, ranging from cooperation on nuclear energy, minerals and bilateral trade, were sealed during stops on a seven-nation African tour by Chinese Premier Wen Jiabao.

Mr Jiabao arrived in South Africa on Wednesday from Angola and held talks with President Thabo Mbeki in Cape Town.

China has agreed to extend more than $2 billion in credit to Angola to help the oil-producing nation rebuild its war-ravaged economy, adding to the $3 billion credit line Beijing has already agreed with Luanda.

It will also cap textile and clothing exports to South Africa to help the country’s industry to develop, following criticism from local trade unions that cheap Chinese goods are costing jobs.

“We are willing to take self-restrictive steps and measures to restrict the export of Chinese textiles to South Africa in order to ensure the stability of the textile market in this country,” Mr Wen told reporters.

The pact will significantly cut Chinese imports into South Africa for a range of goods, particularly clothing and textiles.

Mr Mbeki has come under pressure to curb cheap Chinese imports as well address the overall trade imbalance with China, which exports about three times more to South Africa than vice versa. South Africa’s department of trade and industry said details on the quotas agreed would be released on Thursday.

The two governments also agreed to work together for the peaceful use of nuclear technology. No details were released on the deal but Pretoria and Beijing — which both lack significant oil reserves — are committed to nuclear energy as a future power source.

China and South Africa are currently separately developing a new technology pebble bed reactor, which Mr Mbeki said opened the door to sharing information.

“I’m quite certain that we will be able to develop a system of cooperation between these two countries to develop this technology,” he said.

South Africa is also one of the leading producers of uranium and China could become a market for the mineral to support its nuclear power ambitions.

China is keen to tap into new sources of oil, coal and minerals in order to keep its fast-growing economy rolling.—Reuters

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