20 June 2018

Expansion of China’s textile and clothing firms in Africa

Expansion of China's textile and clothing firms in Africa

As per the reports given by Wang Fangqing, a reporter of Just-Style, in the sub-Saharan Africa region, there is a huge dominance of China’s powerful clothing and textile industry which is continuously growing.

The Textile industry is an established industry for China’s economy. At present, China’s textile industry is the world’s largest in terms of output, because of plenty of resources and cheap labour force in this industry.

AGOA i.e. African Growth and Opportunity Act has created a trading advantage for sub-Saharan Africa’s textile industries to access the United States market and the Chinese firms have benefited from the region’s preferential access to the US by establishing Chinese-owned subsidiaries in the African region.

Since, AGOA has been extended to 2015; Chinese textile makers in sub-Saharan Africa will continue exporting more textiles to the US at the expense of African companies.

According to the report, from January to August 2012, China Customs figures show textile and apparel exports to the European Union is decreasing by 14.4% yearly to US$32.02bn , whereas it has increased to 12.2% to US$9.82bn to Africa and the Chinese companies see Africa as a huge market for export and investment.

According to the reports from Just-Style, William Gumede, a senior research fellow at the University of Witwatersrand’s school of public and development management in South Africa said that, in Africa the local manufacturers and brands of textile industry are worried about Chinese domination of Africa’s textile markets and industry, due to which people in Sub-Saharan Africa are losing jobs, which is a major concern in African Textile industry. The Africans are worried about how to deal with the competition. He also added that the employment in the textile industry of South Africa has decreased from 300,000 workers in 1996 to 120,000 in 2010.

The report says that, according to Jaiyeola Olanrewaju, the director-general of the Nigerian Textiles Manufacturers Association, in Nigeria, the spinning industry which was US$1.3bn is currently in panic. Since 1995, over 175 textile manufacturing factories have close down, leaving more than 250,000 workers jobless, because of Chinese cheap fabrics.

The report also says that, Chinese producers are copying African textile trade marks and unique designs. Dr Walid Jibrin, the chairman of the Northern States Chapter of the Nigerian Textiles Manufacturers Association said that to avoid mimicking, the African government must stop the entry of fake and smuggled textiles. He also added that African prints, shirts, fine wax print textiles, unique Guinea brocades and lace embroideries can be identified as examples of African designs and these textile trade marks that are copied by Chinese on cheap Asian fabrics are dumped in West Africa.

News Source: Just-Style.com

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