By Gordon Bell

CAPE TOWN, June 21 (Reuters) Chinese Premier Wen Jiabao arrived today in South Africa, where he was expected to sign a nuclear power cooperation agreement and defend China's growing trade surplus with Africa's economic powerhouse.

Wen, who is in the middle of a seven-nation African trip designed to cement Beijing's burgeoning economic links to the oil and mineral-rich continent, was received by South African President Thabo Mbeki and a navy guard of honour in Cape Town.

He then joined Mbeki for private discussions.

The two men were expected to discuss a number of economic and political issues, ranging from nuclear cooperation to the impact of Chinese textile imports, which have undercut and in some cases wiped out local producers in South Africa.

Mbeki has come under increasing pressure to do something about the inflow of cheap Chinese imports as well address the overall trade imbalance with China the Asian nation exports about three times more to South Africa than vice versa.

Neither country has given details on the nuclear cooperation pact, but South African officials said it would involve broad cooperation on atomic energy technology and related issues.

South Africa and China, neither of which has significant oil reserves, currently operate French-built atomic reactors and are committed to investing further in the energy source.

South Africa is currently developing a pebble bed reactor similar to one being built by China, which may open the door to the two countries sharing development of the operating systems.

In addition, as one of the leading producers of uranium, South Africa could find a welcome market in China, which needs significant supplies to support its nuclear power ambitions.

Energy-thirsty China is keen to tap into new sources of oil, coal and minerals in order to keep its fast-growing economy rolling. Before arriving in South Africa, Wen visited Angola to strengthen China's ties to the oil-rich nation.

China, which already has provided Angola with a 3 billion dollars oil-backed line of credit, agreed to extend an undisclosed amount of additional credit to help the southwestern African nation rebuild its war-shattered economy, Angola's state-controlled media reported today.

Wen is due to leave South Africa tomorrow, continuing to Tanzania and Uganda for the final legs of his trip.

REUTERS SHR RS1932