‘New Chinese’ like a ‘flood’

The Secretary of the Samoa Chinese Business Association has described the influx of what he refers to as “new Chinese” as a “flood.”

In doing so, businessman and Member of Parliament, Papali’i Niko Lee Hang, has backed a call by businesswoman, Moe Lei Sam, for the government to consider the impact of these new businesses on the local business community.

“It’s a critical issue that is affecting the local businesses,” Papali’i told the Samoa Observer. “There is a huge impact (on local businesses) because under the reserve list, they are restricted to run retail businesses.

“What is happening is that the new Chinese are coming in like a flood.

They are running and operating shops that should be left to locals to operate.”

But Prime Minister, Tuilaepa Sa’ilele Malielegaoi, offers a different view.

Asked for a comment yesterday, he reminded that competition is good for Samoa. He said the most important thing for members of the public is that the Chinese businesses force the prices of goods to drop.

For the Associate Minister of Public Enterprises, he said competition is healthy.

However, he said the competition must be fair.

In Samoa today, he warned that the conditions favour the “new Chinese” and this is having a huge impact on struggling small business owners. He said the situation has gotten out of control and something must be done to change it.

“It is spreading so quickly,” he said.

In reference to Ms. Lei Sam, Papali’i said the prices for the Chinese products are very low.

“It’s cheap and it’s good for competition,” he said. “But the downside is that it’s not good for local businesses. A lot of the products are also not appropriate for Samoa.

If this continues the local businesses will be forced to close down and where will they go?”

Papali’i pointed to another critical issue.

“The profit earned by the new Chinese businesses is not being circulated in the country,” he said.

“It’s being remitted back to China.”

In comparison, Papali’i said local businesses stimulate the economy.

“Local businesses are employing our own people but the new Chinese are bringing in their own people and that has a big effect on us.

“The only benefit is it helps in the cost of living but the long term effect is it’s a disadvantage for our business.”

So what can local businesses do?

Papali’i urged local businesses to stand up and support Ms. Lei Sam’s fight for local businesses.

“A lot of them see it happening and it’s affecting them but they aren’t doing anything about it,” said Papali’i.

“I applaud this woman for standing up and voicing her concerns.

“I encourage the local businesses not to sit around but do something like Moe by going to the Prime Minister.”

The Tautua Party’s Shadow Minister of Finance, Afualo Dr. Wood Salele, also shared his views on the issue. “A lot of people aren’t happy with these new Chinese,” said Afualo.

“We are seeing many local shops close down because they just can’t make a profit.”

The M.P added that with the financial situation in Samoa today, unemployment would continue to be a major problem.

“Our people are unemployed because these businesses don’t hire our people, they force shops to close down and bring their own employees.” Veteran M.P A’eau Peniamina Leavaise’eta agrees.

He said, psychologically the impact on the country, as a whole is extensive.

“It affects the wellbeing of our people and the economy’s growth.”

Two weeks ago, Ms. Lei Sam wrote a letter to the Samoa Observer, rallying local businesses to gather to discuss the issue.

In her letter, she said during the recent Mothers Day, her shop recorded the lowest amount of sales ever since she started her business.

“The reason behind it is that the local businesses are no match for the Chinese businesses that have set up shop right across the whole country,” she said.

“Sources informed me that a shop in Apia belonging to overseas Chinese were selling their products at $1. One tala for bras, for all kinds of products.

How can we the local business owners match that?

“It does however bring to mind another question; are these people paying taxes like the rest of us? How are they able to sell their products for such low prices?”

None of the Asian owned businesses approached by the Samoa Observer for a comment responded on the record.