ANGER is mounting in Africa, particularly in SA, about what the Congress of South African Trade Unions (Cosatu) calls a “tsunami of cheap Chinese goods” stifling local industries and wiping out jobs.
Now the Chinese government has undertaken to clamp down on companies ruining that country’s reputation by selling inferior products overseas.
Commercial counsellor for the Ministry of Commerce department for West Asia and Africa Affairs Xie Yajing says that while her government is willing to act, it needs the support and co-operation of African governments to succeed.
Xie said last week that countries such as SA with respected quality control institutions should consider naming and shaming Chinese firms with products that failed their tests.
“We hope they will co-operate with us to identify those businesses and products so that we ensure the bad practices are stopped.”
In no sector is this more critical than in the textiles sector.
The Textile, Garments and Tailoring Senior Staff Association of Nigeria estimates 350000 jobs have been lost directly as a result of Chinese competition and 1,5-million indirectly after more than 50 textile industries were forced to shut down over the past five years.
SA’s textile union estimates 800 manufacturing units and 60000 jobs have disappeared in SA since 2001 because of unfair competition from China.
SA has imposed antidumping duties on Chinese products such as face cloths, door locks and handles, and blankets. But some analysts say these are token measures, perhaps reflecting a desire by SA not to antagonise China with its giant
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economy, which is growing in leaps and bounds. African countries have for decades faced a dilemma in dealing with China on trade because of Beijing’s solidarity with Africa in its fight against colonialism in the 1950s and 1960s and support of liberation movements in southern Africa.
In Lesotho, which is dependent on textiles for 90% of export earnings, the garment industry collapsed after the end of World Trade Organisation restrictions on Chinese exports killed off Lesotho’s US orders.
Xie told African journalists in Beijing her government was determined to deal with Chinese firms fuelling “wrong perceptions” that Chinese business sold lower-quality products.
“We are proud of the ability to produce quality products for a fair price due to low labour costs among other advantages, which is different from inferior products produced by a select few individuals lacking a professional business ethic that prevails in China,” she said.
Xie urged consumers to pressure local importers to stop buying the products. “Your quality control institutions can play a very crucial role by checking and testing products to help us stop this.”
But her attempts to spruce up her country’s image were met with disdain by Cosatu , at the forefront of fighting fake Chinese goods.
Cosatu spokesman Patrick Craven said the greatest challenge for SA was that China’s products were being produced by “exploited workers” without labour rights and earning appallingly low wages. “It is for this reason that Cosatu believes SA should impose tariffs on all Chinese products,” he said. With Reuters