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Chinese throw SA manufacturers a lifeline

27 Jan 2006 - by Staff reporter
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TERRY HUTSON TEXTILE AND clothing manufacturers have welcomed last week’s announcement by the Chinese ambassador to South Africa that China would introduce a voluntary curb on its exports to South Africa. Ambassador Liu Guijin said China had also agreed to assist the local industry with training and would look to form partnerships locally with the aim of making South African producers more competitive. However the reaction of trade union representatives was less than enthusiastic, with the South African Clothing and Textile Workers’ Union (Sactwu) pointing out that Chinese ‘competitiveness’ was based on unfair labour practices and generous subsidies from the Chinese government in addition to an undervalued Chinese currency. Sactwu said it had lost up to 60 000 members as a result of job losses since 2003.

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