Study of the Effect of the Nigeria-China Trade Relationship on Domestic Manufacturing in Aba, Abia State

Nigeria's expanding trade relationship with China has generated concerns about its impact on domestic manufacturing, particularly in industrial centres like Aba, which is known for small-scale production in South East Nigeria. This study examined the effect of Chinese manufactured goods competition on domestic manufacturers in Aba, Abia State. A survey of 180 small and medium manufacturing enterprises in the Ariaria Market industrial cluster was conducted. Data covered product types, revenue trends since 2015, market share estimates, employment levels, and coping strategies. Descriptive statistics and trend analysis were applied. Results showed that 67.2 percent of Aba manufacturers reported declining market share due to cheaper Chinese goods, with average revenue reduction of 28.4 percent since 2015. Footwear, textiles, and plastic goods producers experienced the greatest competition. Firms that had adopted product quality differentiation or niche market strategies showed 34 percent higher revenue retention. Employment in sampled firms declined by an estimated 22 percent over the study period. Tariff-based protection of domestic industries was identified by 78 percent of producers as the most desired policy response. The study concludes that Chinese import competition poses a significant threat to Aba's manufacturing sector. Recommendations include targeted tariff protection for selected domestic manufacturing sectors, Nigerian-Chinese joint venture facilitation that requires technology transfer, quality certification support for Aba manufacturers, and a domestic market campaign promoting locally-made products.

Keywords: Nigeria-China trade, domestic manufacturing, Aba Abia State, import competition, industrial policy