October 26, 2007 (LPAC)--The news that China's biggest bank, Industrial and Commercial Bank of China, has agreed to buy a 20-percent stake in South Africa's Standard Bank, in a deal reported to be worth $5.5 billion, indicates strengthening in bilateral relations between the two.

The strengthening of strategic ties between China and South Africa began to flourish with the Chinese President Hu Jintao's visit to South Africa last February. China is working with a number of other countries, including South Africa, in developing the pebble-bed modular reactor, based on technologies that are expected to generate greater safety and efficiency. The pebble-bed reactors could also be used to produce hydrogen, which many in the world hope will emerge as a major alternative to oil in the transportation sector.

A Chinese company, Chinergy, established to develop pebble-bed reactors, has signed a memorandum of understanding with a South African company which has emerged as one of the leaders in pebble-bed reactor technology. MIT has also joined R&D forces with China and South Africa. China and South Africa hope to work together to commercialize and export pebble-bed reactors in the future.

Aside from this example of international cooperation, South Africa, India, and Brazil have also been working together on nuclear power development.