The EU Abolished Anti-Dumping Duties In China

It's good news, but its role is limited.

Tsai manager, Investor Relations Department of nine Hing Holdings, a listed footwear firm in Hongkong, said that for producers, the news should be more positive if there are European customers.

In the first half of 2010, nine of the total exports to Europe accounted for 29.5% of the total revenue. The cancellation of anti-dumping duties was certainly a good thing for nine Xing.

Zhang Bin, principal analyst of textile and apparel of state securities company, also pointed out that the cancellation of anti-dumping duties is certainly a good thing for the industry.

But it is afraid that it will make another move.

Because policy has too much impact on exports, it is difficult to predict.

According to the Ministry of Commerce, the European Union of footwear industry (CEC) is seeking an omnidirectional strategy that can cover dumping and other unfair trade practices, as well as market access and respect for intellectual property rights.

Moreover, the peak period of China's exports has passed, and after 07 years, it has entered a steady development.

Coupled with the rising cost of labor and so on, it is a blow to exports. Under this background, the positive effect of the termination of anti-dumping duties on Chinese leather shoes is not much.

Shoe companies no longer sensitive

Since the economic crisis in the first half of 2008, a series of problems, such as rising land costs, rising labor costs and rising prices of energy and raw materials, have triggered a heated discussion on the urgent need for pformation and upgrading of China's manufacturing industry.

And the export of China's manufacturing industry is always threatened by anti-dumping.

Up to now, the tax burden on the first 4 years is expected to be removed, but the Chinese leather shoes enterprises do not seem to be as sensitive as before. The export path of Chinese leather shoes enterprises also seems to be no longer so uneasy.

BELLE, Saturday and other major domestic sales, export share of a few listed footwear enterprises on the news is not "cold."

The EU has imposed anti-dumping duties on Chinese leather shoes for a long time, which is a positive news for shoe manufacturers.

But the impact on those high-end shoe companies is not too big.

Liu Lili told reporters that under the pressure of RMB appreciation and rising labor costs, the overall export environment is not optimistic.

So we have to see whether the company's product portfolio has added value.

Like nine Xing holdings, its customers are mostly high-end customers, and their bargaining power is relatively high. Nine Hing Holdings mainly focuses on products with high added value. Its average selling price can only offset the pressure of RMB appreciation and labor costs rising as long as the average selling price increases by 4-5 percentage points.

00551HK, which is also listed in Hongkong, mainly deals with low and medium end processing, so the gross margin will be relatively low. Under the pressure of rising costs, if the price increases are not high enough, the pressure will be considerable.

Tsai manager of the nine Xing holding Investor Relations Department said that the higher the price of a company's product, the less affected by the anti-dumping duty, so companies should still strive to improve the value of their products.

Nine Xing also hopes to embody the value of the brand, maximize customer mix and provide more services and additional value to customers.

Factories in China are bound to take a high value-added road.

When it comes to the status quo of leather shoes industry, Cai believes that the cost of raw materials and labor is rising, which is very unfavorable for small manufacturers. The export business of shoes enterprises will surely face integration. In fact, this kind of integration has also been taking place.

Just now the business environment will increase their business difficulties for small manufacturers, but it is a good thing for big manufacturers.

Although there is a view that China's demographic dividend has passed, labor is no longer cheap, but China's manufacturing industry still has its own advantages.

China has high-quality human resources, there are some very experienced labor, supply chain is also very complete.

And even if there was an anti-dumping duty, and now the cost of labor is rising, those companies in Europe still need to outsource their capacity, because even if they are added to them, it will be cheaper in China.

This trend is hard to reverse with some rigid measures.

Of course, some low-end shoes will gradually move to some Southeast Asian countries, and this has been happening all the time.

The last thing to stay in China is some high value-added and high priced products.

Factories in China are bound to embark on a path of high added value.

She told reporters that nine Xing could not give up the whole export business because of its poor export environment.

Because there are still many export opportunities, such as the movement of the capacity of some emerging countries in Europe, and there is still a great chance for Chinese enterprises to win.