By imposing additional duties on imported goods from Chinese retailers like Shein and Temu, government is sending a bad message to the local manufacturing industry, says the writer.
The duplicity and deceptive shenanigans of government and politicians smacks of pathetic hypocrisy and phoniness!
During the Business Forum in Beijing in September, President Cyril Ramaphosa solemnly committed to: "Strengthen trade relations and take it to the next level!"
Word has it that In November another government delegation will go to China!
While the president was cosying up to and sugarcoating hand-on-heart loyalty and friendship pledges, his henchmen in SARS and DTIC were unflinchingly plotting to emasculate and lynch two key Chinese traders, relegating them to the promised "next level" of subordination!
The decision to "level the playing fields" by imposing 45% duty plus 15% VAT on imported clothing is blatantly and undeniably discriminatory and aimed at Shein and Temu!
These two Chinese players are the only ones ever mentioned in all of the targeted media smear campaigns.
For more than a year, spooked and timid local traders cried foul every day, spouting untruths and falsehoods against the veritable Chinese competitors. Stuck in an out-dated, archaic retail trading system, and unable to rise to the challenge, reinvent and show some enterprise, government was manipulated into providing protection by raising tariffs. Don't dare threaten exorbitant profit and huge mark-up!
Two of the leading retailers, the main protagonists, incessantly cried wolf, using emotional blackmail, expostulating that Shein and Temu were affecting their bottom line and threatening their business.
However, they posted record sales up to R69 billion, and profits in the region of R6billion!
Threatening their business? Record sales and profit?
What a con!
When asked if our number one trading partner, China, had been engaged and consulted regarding the hiking of tariffs, a very prominent industry source said:
"It was not necessary, it's just a detail."
Mind-boggling and contemptuous!
The government’s protectionist policy is immensely counter-productive, especially as it has recently funded the industry to the tune of some R2.5 billion, millions of rand in interest-free loans, concessions, rebates, etc.
It places no obligation on industry to innovate and pro-actively reinvent. In fact, it encourages sorry complacency, stagnation and dependency!
Government should understand that rising to a challenge is the only path that leads to growth!
Suffocating competition creates an artificial safe haven — industry can always just whimper and run to Big Brother!
There are many exciting ways in which enterprising and visionary clothing retailers can show their mettle and be market leaders!
When we grow to recognise that challenges are amazing opportunities, rather than threats, then we have matured and will not have to cling to the government’s coattails!
If we want to be part of the global village, we need to man up and learn to compete — there are many exciting ways to do that! It just depends on your level of maturity and insight!
Government should walk their talk!
* Name withheld to protect the writer’s identity.
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