The Chinese Embassy in Namibia has stepped in to defend its nationals, most of who operate retail businesses in Namibia, amid renewed pressure from local retailers who have been waging a "war" against such businesses.

Local retailers have been up in arms against Chinese owned retailers, most of which sell similar products as theirs, albeit at cheaper prices. They argue that as foreign investors, the Chinese should rather be sorely concentrating on large industries such as construction and manufacturing, as opposed to penetrating smaller car wash, corner shops and retailing sectors.

The Chinese Embassy, however, dismissed such claims, noting that as a free market economy, Namibia opens herself for any type of businesses undertaking provided that the legal requirements for operating such a business are met.

Liu Runing, the economic and commercial counsellor at the Chinese Embassy, told The Southern Times in an exclusive interview that just as any other foreign investor, the Chinese were permitted to practice in any business sector as per their specialisation, and could therefore not be limited to a certain sector.

"Chinese entrepreneurs come to Namibia in search of viable business opportunities in any sector.

"If a market in a certain sector opens up, and is not taken by the locals, we cannot blame the Chinese for filling such a gap," he said.

He, however, noted that it would likewise be beneficial to both Namibia and China if the Chinese manufacturing businesses set up plants here, but maintained that just like Namibia, China was also a developing country.

"Such a business venture would indeed be a viable option, but we are also a developing nation that also strives to attract investors for economic benefits and can therefore not heavily invest in such a sector outside China as yet," said Liu.

He also denied any knowledge that Chinese business people were deliberately avoiding banking their money to avert rates and taxes. He said the embassy has long maintained that all Chinese citizens residing and doing business in Namibia abide by laws and regulations of Namibia, and has been encouraging them to make contributions to the local economy. Any violations of such laws and regulations should therefore be punished accordingly.

"As an investor, big or small, he or she must register a company either in the form of CC or PTY, with a valid ID, and then apply for a VAT number and open a bank account, otherwise he or she cannot found his or her business. As a country adopting a free market economy, the Government of Namibia, especially the department in charge of businesses and revenue collection, should have measures in position to control and manage such businesses...should there be violations, these should be solved by local laws and regulations," he said.

With regard to trading in products of inferior quality, the Chinese Embassy spokesperson said Chinese retailers were mostly targeting low-income groups, and therefore trade in products that were commensurate with the prices charged.

He said China exports both low quality products and world famous brands such as Pierre Cardin, Nike and Addidas amongst others, to cater for all markets.

"One cannot say something is of good or bad quality without a comparison of its purpose of use and the price you paid for it. Such conclusions can only be drawn through comparisons. You cannot expect to get the comfort and elegance of a BMW X5, if you only bought a standard VW family car. It's all about the price," he said.

 

From the Southern Times in Windhoek