Caixin
Dec 30, 2011 06:38 PM

A Garment Industry in Tatters

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Beginning in the 1990s, the arrival of Chinese manufacturers made Newcastle, in northwestern South Africa, a global textile capital. Today, there are more than 60 enterprises producing at least 180,000 garments daily. The factories are mainly owned by Chinese people and employ some 6,500 workers, one-third of the city's employed population.

However, after years of booming growth, the Chinese factory owners have found themselves increasingly struggling with cheaper imports and South Africa's intensifying labor rules. Diminishing profit margins and increasing labor conflicts are pushing them to the brink of extinction.

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