Home Facts trade

South Africa:China warns textile industry against complacency

South Africa:China warns textile industry against complacency

Write: Lensar [2011-05-20]

China has warned South African textile workers to fasten their growth both in terms of quality and quantity to compete with Chinese products as it is not inclined to extend the period of unilateral quota imposed on its products beyond two years.

The Chinese Ambassador Liu Guilin stated on record that China expects this gesture to produce positive outcome and local textile industry be able to improve both output in quailitative and quantitative terms.

Textiles quotas are scheduled to be effective from January, 01, 2007. China had voluntarily decided to impose them on its exports to South Africa much against the World Trade Organisation (WTO) charter.

China resorted to this step as South African Government was being pushed by Congress of South African Trade Unions (Cosatu) and textile workers who argued that around 50,000 jobs losses were reported due to heavy influx of cheap Chinese textile goods in the local markets.

Liu further stressed that instead of complaining about Chinese exploitation, they should look to provide countries like India and China with raw materials as they are important suppliers in the segment and should aim to profit therefrom.