China ‘to blame’ for collapse of African textile industry
15/04/2013
"The sad reality is that they are not comrades. Their companies are there to make profits like everyone else," Zimbabwean Finance Minister Tendai Biti told the Reuters Africa Investment Summit in South Africa. "The African textile industry has basically collapsed because of cheap Chinese imports. Africa needs China but let's create an equitable relationship."
China's trade with Africa has surged from about $10 billion in 2000 to $166 billion in 2011, with much of that an exchange of African minerals for Chinese manufactured goods.
Part of the fault may lie with African policymakers, for not demanding enough from their Chinese counterparts at the bargaining table. For some African politicians, part of China's attraction lies in its unwillingness to criticise local governments over human rights or corruption, unlike the West.
"You can't blame the donor only. You need to blame the receiving government as well," said Elias Masilela, the chief executive of South Africa's government pension fund.
African governments also needed to do more to put in place the infrastructure that can support a domestic manufacturing industry, speakers said.
China is offering $20 billion of loans to the continent between 2013 and 2015.
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