The Sino-Africa Cooperation summit ended in mid-November 2006 leads domestic textile industry s investment in Africa. Thereinto, as the relatively developed African country, South Africa becomes the first choice for Chinese textile enterprises to invest or set up their branches.
In June 2006, South Africa and China signed an agreement including import quota on Chinese textile and apparel, that is to say, China will limit textile export to South Africa, and this will promote Chinese orderly textile export to South Africa.
The Minister of South African Trade and Industry MPAHLWA said the South African government welcomed Chinese textile enterprises to invest in South Africa. South African textile industry s good infrastructure, cheap electricity price and labor, and other preferential trade agreements all make South Africa become China's investment hotspot.
