China plans no renewal of South Africa textile restrictions
China does not plan to renew a voluntary two-year restriction on
textile exports to South Africa imposed after unions complained
that cheap imports were hurting local manufacturers, said Zhong
Jianhua Ambassador. He said the quotas that ended at the start
of this year had failed to bring about any improvement in the
competitiveness of the country's textile sector, and so it would
be pointless to drag them out further.
There's no reason to extend that limitation on our own
exports to South Africa because these two years did not bring
about any benefit to both sides. The truth is that the Chinese
manufacturers would not be happy to see that and last year was
pretty bad for Chinese exports.
Quotas on Chinese textile and clothing imports to South
Africa came into effect in January 2007 in response to union
complaints about external competition. At the time, retailers
complained about the higher prices that would result from
blocking Chinese textiles, and the Central bank said they could
add to inflationary pressures in the economy.
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