October - 2009

 

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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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