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Paper short abstract:

The paper examines China's role in reshaping the global FDI landscape and challenging Western dominance. The study concludes that South African governments should reconsider their economic strategy, specifically aiming to promote self-sustainability and economic equality.

Paper long abstract:

South Africa has emerged as a global hub, attracting substantial Foreign Direct Investment (FDI) from the world. This study focuses on the ramifications of Chinese investments in South African-based manufacturing businesses. First, this study uses a case involving Chinese FDI, local South African governments, and labor unions to examine their intricate interactions. Despite South African local initiatives, such as national minimum wage and collective bargaining aimed at achieving social equality, the analysis contends that these measures may inadvertently contribute to renewed labor struggles and inequality reproduction once FDI funds get involved. This underscores the urgency for South Africa to rebalance its industrial relations to navigate global capitalist competition effectively. Second, this study shifts focus to examine broader African economic development efforts, focusing on China's reshaping of the global FDI landscape and challenging existing Western dominance. This study provides both supporting evidence and a rationale to advocate for a critical examination of the various forms of FDI programs that are influencing African economies, placing special emphasis on the impact of Chinese neoliberal capitalism across the African social landscape. Rather than accepting a temporary halt in declining labor standards, the focus of any African country’s economic policy should be on steering future available FDI towards a more equitable and sustainable future, challenging and dismantling the prevailing social and economic factors that impede progress in reaching these goals.