AFRICA: Apparel makers hit harder than Asia by China growth
African nations have been hit harder than poor Asian apparel exporting countries by China's rapid expansion as a competitive global power, a report by a specialised economic agency says.
Research studies of Chinese and Vietnamese exports found that the world's biggest emerging nation is not "crowding out" Vietnam in the US market for textiles and apparel.
In a similar vein, the study by the Organization for Economic Cooperation and Development (OECD) says research found that China is, in fact, mainly a competitor to middle-income ASEAN countries, and that it is "India that provides the principal competition for the lower-income countries in the group."
However, studies on sectors such as apparel and furniture came up with persuasive evidence that China's competitive clout has had a harmful effect on poor sub-Saharan African exporting nations such as Lesotho, Swaziland, Madagascar, Kenya and even South Africa.
Looking ahead, the report, 'Perspectives on Global Development 2010: Shifting Wealth,' concludes that developing nations spurred by dynamic economies such as China, India, and Brazil, will account for 60% of world economic output by 2030.
This in turn will see a changes in trade flows driven largely by more south-south trade at the expense of north-north trade flows among rich nations which dominated much of the post World War II era, it notes.
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