The Phenomenon of China Shops in South Africa: Development, Entrepreneurship and Social Cohesion

The so-called China shops have become a buzzword in the South African public domain. This paper investigates this phenomenon and whether it contributes to economic development and social cohesion in the country. The following questions guided this paper. (a) Who are the Chinese that run the so-called China shops in South Africa? (b) What catalyses their entrepreneurship? (c) How do their shops/businesses promote development in the country? (d) Does their entrepreneurship promote social cohesion and integration in the respective communities in which they operate? The paper adopted a qualitative approach based on the survey method and documentary evidence. A semi-structured interview technique was utilised to elicit information from 10 participants, who were all China shop owners based in Durban. Thematic analysis was performed on the data that were gathered. The Chinese that operate stores involved in this trade are mostly from Mainland China and their businesses contribute to the South African economy by creating jobs for unemployed South Africans, paying taxes, increasing consumer spending and offering affordable alternative shopping to low-income households. However, despite their contributions to the country's development, these Chinese migrant entrepreneurs still face numerous challenges that include xenophobic and criminal attacks and the common perception that they are in the country illegally. Finally, this paper recommends that South Africa and China develop people-oriented mechanisms to deepen mutual understanding and friendship between the two countries, given the economic, political and geopolitical importance attached to this relationship.