Chinese imports into South Africa have increased dramatically over the last ten years, and by December 2005 they were $4,926 million or 9.0 per cent of the total, with the latter figure up from a 2.1 per cent market share in 1996.
These 2005 imports were up 37 per cent on the 2004 figure, much higher than the global increase into South Africa of 15.5 per cent.
Chinese imports are not as highly concentrated as South African imports into China, with the top 10 HS chapters making up a lesser 72 per cent of the imports. Although 45 per cent of the trade enters duty-free, the average duty that would have been assessed on these imports in the absence of any rebates was 12.52 per cent.
These duties are mostly paid by the 30 per cent of the imports that enter where the duties are assessed at 20 per cent or more, a grouping that is dominated by textiles, clothing and footwear.
A look at revealed comparative advantage shows that aside from the spectacular growth a remarkable feature of Chinese imports is their domination of the market where they do compete, with most of the textile, clothing, footwear and leather chapters holding a market share of at least 50 per cent.
Associated with this are the equally remarkable growth rates to achieve this dominance, as some 97 per cent of the individual HS 4 import lines have increased their market share over the last ten years.
Data reconciliation shows that, as expected with South African imports into China valued at two and a half times the reported exports from South Africa to China, there is little coherence in reconciling the trade flows to China.
marketing@alchempro.com
