The Impact of Chinese Overcapacity on Developing Countries
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Show Notes
South Africa this week joined a growing list of developing countries around the world to introduce tariffs on certain Chinese imports in a bid to protect local producers. Indonesia, Mexico, Chile, and Brazil, among others, also introduced similar duties on Chinese steel and other products.
While low-cost Chinese goods are a boon for Global South consumers, they're extremely problematic for manufacturers in these countries because it's almost impossible to match the "China Price."
Chinese factories can produce goods at a scale and cost that remains unrivaled, and now, according to a new report by the consultancy Rhodium Group, they're flooding markets in Africa and other developing regions.
Camille Boullenois, a director of Rhodium Group's China projects team, and Austin Jordan, a senior analyst at Rhodium Group, join Eric & Cobus to discuss their new report and why this trend is potentially debilitating for many of the world's least developed countries.
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