Must defend strategic industrial capacity: Davies

Speaking at a South African Institute of International Affairs conference at Jan Smuts House on Monday, he said that while China will take 40% of world trade in this sector, that still leaves 60%.

"This industry is not inevitably doomed. We will insist on quid pro quos being investment and productivity. There must be value add. We are defending strategic industrial capacity," said Davies.

He explained what strategic industrial capacity defence meant: "If a factory closes, it is gone and you do not get that capacity back that is what is driving us." He said industrial capacity protection did not entail protecting a director's dividends.

"There are employment-sensitive sectors. And remember many clothing and textile goods are coming into the country in a fraudulent way," he added.

"We will take some steps to safeguard jobs," concluded Davies.

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