EU Gate "Restart" Investment Direction Of Shoe Enterprises

After 5 years of hard defense, China

According to an official data, from 2006 to the end of 2010, the sales of leather shoes exported to Europe dropped by 20% because of the anti-dumping duties imposed by the European Union, which indirectly caused the economic losses of enterprises to be about 10 billion US dollars, which directly led to 20000 unemployment in China.

Reporters in the survey learned that although the EU has abolished anti-dumping duties, but some shoe companies have been sharply reduced to the EU market enthusiasm.

In January and February this year, Ningbo port exported 3 million 672 thousand pairs of leather shoes to the EU, down 8.37% from the same period last year.

The five year saw the end of the tug of war.

EU's leather shoes for China

In order to protect the interests of some southern European shoe enterprises, the EU has formally imposed anti-dumping duties on leather shoes imported from China since October 2006, with the highest tax rate of 16.5%.

Because the case has caused great divergence within the EU, the EU Member States will eventually impose anti-dumping duties for a period of 5 years from two years to two years.

In October 23rd of the same year, 5 Chinese shoe companies such as AOKANG appealed to the European Court of first instance.

That year is the most difficult day for Wenzhou's private shoe enterprises.

"When the EU started anti-dumping duties in 2006, the European Union's orders for AOKANG shoes in the second half of this year dropped by about 50% compared to the same period in 2005. This has never happened before in our company. We were very anxious at that time."

Wu Chunyue, general manager of Jiangsu AOKANG Group Import and export company, said.

Wu Chunyue told reporters that the EU has long been one of the biggest export markets for Chinese shoe companies. "Before 2006, our exports to Europe accounted for about 50% of the total output of our exports."

Wenzhou jelda Footwear Co., Ltd. foreign trade department responsible person told the newspaper reporter, at that time, because the EU anti-dumping plan for Chinese leather shoes had not been finalized, after many discussions, the initial set of one or two sets of final ruling plan "go back on the contrary", the third set of final award scheme has not yet been released, causing domestic enterprises and EU importers to wait and see atmosphere.

"Just when everyone was watching, we were forced to open up other overseas markets because we could not wait and see, where the products of production were stacked there, and we would starve to death if we did not find a way out."

The person in charge said.

"Our new importers have almost been cut off, and orders in the second half of the year have been reduced by more than 40%.

In order to avoid the impact of EU anti-dumping, our export volume to the EU has decreased from 80% of the total export volume to less than 50%, and has increased exports to Africa, the Middle East and other countries.

The person in charge said.

In October 2008, when the anti-dumping measure should have expired, the European Commission decided to review the anti-dumping case of Chinese leather shoes in spite of the opposition of most Member States, so as to decide whether to extend the anti-dumping measures.

During the review period, the original anti-dumping measures are still applicable.

In December 2009, the EU decided to reconsider anti-dumping measures for Chinese leather shoes for another 15 months, and the plan should expire in March 31st.

In April 2010, the EU's junior court dismissed 5 Chinese shoe companies' claims.

In April 8th, China's Ministry of Commerce appealed to WTO to set up an expert group's request for anti-dumping measures against China's leather shoes by the European Union and formally launched the WTO dispute settlement expert group's hearing procedure.

In May, when other shoe companies announced their abandonment of appeal, Wenzhou private AOKANG shoe industry decided to appeal to the European Union High Court.

European market attractiveness

The EU has imposed anti-dumping sanctions on Chinese shoe enterprises for 5 years, which has made Chinese shoe companies feel a lot of wrongdoing and helplessness.

A leading shoe manufacturer in Zhejiang said that the EU Trade Commission considered that Chinese leather shoes were dumped to the EU at a price lower than their domestic production costs.

"This is only an excuse for the EU to impose anti-dumping duties on Chinese shoe companies. They do not recognize our market economy status. The EU calculates our production costs, referring to the production costs of third countries."

A well-known shoe manufacturer in Zhejiang said frankly: "because domestic labor costs are low, enterprises still have a certain profit."

However, considering the cost of production in third countries to consider China's shoe enterprises is undoubtedly an abnormal means.

A head of a medium-sized shoe manufacturer in Wenzhou told our reporter that from 2006 to now, the EU market has been gradually abandoned by them. "The anti-dumping duty is so high that there is not much profit. Why should we stare at it?"

The responsible person gave the reporter an account. Now the average price of a pair of leather shoes sold in the domestic market is 25 US dollars. The export of these shoes to the EU will produce an anti-dumping duty of up to US $4. "After deducting the cost of materials, water, electricity, artificial wages, venues and so on, we will pay 4 dollars in taxes, and there will be little profit left."

When asked about whether to go back to the EU market in the future, the person in charge said: "it will be considered, but there is little hope, or domestic sales."