Effect of Chinese Private-Sector Investment in Clothing and Textile Industry in South Africa

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With increasing Chinese private investment in the South African clothing and textile industry, between March 2003 and September 2006, lots of jobs were lost in the domestic clothing and textile industry. These losses were related to significant growth in imports from China over that period. The purpose of this research is to present the reactions of South African trade unions towards Chinese private-sector business in the textile and clothing industry. Documentary analysis was at the forefront of the methodological approach in this research. The findings indicate that trends of unemployment prior to the imposition of the quotas have continued while Chinese private sector keeps investing to clothing and textile industry. There was no change in the investment profile of clothing and textile firms after the imposition of the quotas and the industry continued to shrink. Competitiveness challenges facing the industry did not change. However, Chinese private investment potentially delivers a number of benefits like additional investment, distribution and marketing skills, and innovation knowledge. The South African Clothing and Textile Industry should therefore consider conducting further research to improve capacity-building and training.
MM thesis - P&DM
Clothing industry - Investment, Textile industry - Investment