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    Sanctions On Chinese Shoes Do Not Win.

    2008/8/21 11:15:00 7

    China Shoes EU Anti-Dumping

    When the European Union was locked in the end of the anti-dumping case against leather shoes in China, Massimo Donda, chairman of the Italy footwear retailers Association yesterday (MassimoDonda), lamented the Shanghai Oriental Morning Post reporter that "sanctions on Chinese leather shoes will not win."

    Affected by the European Union's levying provisional anti-dumping duties on Chinese shoes, the export growth of Chinese shoes to Europe has been greatly reduced, and Guangdong, the first export province, has even dropped.



    Yesterday, the twenty-fifth international footwear industry conference hosted by China Leather Association was held in Shanghai. This is the first international footwear industry conference held in mainland China.



    Despite the fact that Italy is the hard core of the EU's "hard hitting" Chinese shoes, Tang Da, chairman of the Italy footwear retailers Association, told the Oriental Morning Post of Shanghai that European importers, retailers and consumers did not want to levy anti-dumping duties on Chinese shoes because there would be no winners in taxation.



    Tang said frankly, the 16.5% tax plan is the result of the political game among EU members.

    "If it is taxed, it is not only the Chinese shoemaker, but also the importing retailers and consumers of the European Union," Tang Da said. "But the European shoe makers will not get the advantage. Their share will not be enlarged because of the sanctions on Chinese shoes."



    At present, due to the huge internal differences within the EU, up to 760 million U.S. dollars involved in the leather shoes case is stuck.

    Last Thursday, the European Commission approved the proposal to impose 16.5% anti-dumping duties on all Chinese shoes proposed by the European Trade Commissioner Mandelson, and gave the members one month to vote.

    In the early voting at the beginning of last month, most members such as Britain rejected the plan.



    As for the impact of Taxation on EU consumers, Tang said that the current tax burden is shared by Chinese manufacturers and EU importers, so there will be no sudden increase in retail prices.

    But if we decide to levy taxes, in the long run, some taxes will be passed on to consumers.



    In the view of Tang Da, anti-dumping will not have a great impact on China's footwear industry.

    "China is the world's largest footwear exporter and exporter. Its strong export momentum will not be hindered by more than a dozen tax."

    Tang Da pointed out that the share of Chinese shoes in the EU market will not be reduced because of anti-dumping duties.



    Compared with Tang's optimism, Su Chaoying, Secretary General of China Leather Association, expressed concern about the prospect of Chinese shoes. "Many of our orders have been pferred to neighboring countries such as India and Indonesia."

    He told reporters that in April, the order of footwear enterprises decreased significantly.

    "At present, European Importers are watching the final outcome of the EU to decide whether to place orders in the future."



    Guangdong shoe manufacturers association chairman Qiu Xiao advertisement told Shanghai Oriental Morning Post reporter that since April, the European Union levying provisional anti-dumping duty, Guangdong's export to European leather shoes has dropped sharply.

    In June, Guangdong's exports of European leather shoes fell 2.1% year-on-year, the first decline in several years.

    "Now, many shoe enterprises in our province are under construction, and some enterprises with good production conditions are beginning to fail and even fail."



    In the EU's internal disputes over the final rule of leather shoes, Chinese shoe companies do not wait for the EU to "pronouncement".

    Wang Zhentao, President of AOKANG group, told the Shanghai Oriental Morning Post reporter yesterday that the two vice presidents of AOKANG would go to Europe with the lawyers for two days. "Before the final announcement, we will try our best to win the market economy status and the separate tax rate".



    At present, only the EU's "market economy status" in the case is the Golden Shoe industry with Taiwan funded background, and the EU gives it a 9.7% separate tax rate.

    AOKANG, who wants to get a separate tax rate, will pay 3 million yuan for the European defense, and the lawyer fee will cost about 2000000 yuan.

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