Abstract
The rapid spread of Chinese clothing exports globally is analysed with respect to their competitiveness and welfare industrial policy dimensions, using a framework of complementary/competitive relationships and direct/indirect impacts. The dynamics governing the South African clothing sector, the role of retailers in driving domestic value chains, and the reasons for the huge increase of Chinese clothing imports is discussed. The significant welfare benefit of cheap clothing imports for consumers is detailed. The impact on local manufacturers, forcing them to meet the competitiveness challenge and upgrade their production capabilities, as well as the policy challenges this creates for local producers, is explored.
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