The Charm Of The EU Market Is Greatly Reduced By &Nbsp; Chinese Shoe Enterprises Are Investing In Other Countries.

In March 29th, after 5 years of hard defense, Chinese shoe companies finally broke the EU's anti-dumping stick.

The European Commission recently issued a notice announcing that the anti-dumping duty on Chinese leather shoes should be levied on March 31, 2011 from up to 16.5%.

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.

This reporter learned in the survey that although the EU has already abolished anti-dumping duties, some shoe companies' enthusiasm for the EU market has dropped sharply.

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.

The EU anti-dumping on Chinese leather shoes began 5 years ago.

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 our reporter that the EU has long been one of the biggest export markets for Chinese shoe enterprises. "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.

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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 official gave the newspaper reporters 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 cost US $4 in anti-dumping duties, and deduct all the costs of materials, water, electricity, artificial wages, venues and so on, and surpass 4 dollars in taxes.

When our reporter asked if he would go back to the EU market in the future, the person in charge said: "we will consider it, but we have little hope, but we must focus on domestic sales."

Wang Zhentao, chairman of Zhejiang AOKANG group, said that in 2006, AOKANG exported about 1 million pairs of leather shoes to the EU. However, with the Levy of anti-dumping duties, AOKANG has basically given up exports to the EU in the past 5 years. At present, the products exported to the EU account for only 10% to 15% of the total number of products.

Before the anti-dumping duty, Huajian exported to the European Union accounted for 2 of the total export.

Since then, the proportion of exports to the EU is less than 1.

Because of the anti-dumping duty, we have $about 2000000 in EU orders every year. "

Dongguan Huajian group leader told the reporter.

The person in charge also said that the anti-dumping duties would increase the export cost of enterprises.

"This will prompt many enterprises to abandon the EU market or reduce the proportion".

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The European Union has decided to cancel it.

Wei Ya Fei, director of shoe making office of China Leather Association, said that the EU still has some follow-up problems and preparations in many aspects, and has already begun to investigate the relevant situation in China.

After the EU's anti-dumping duties are suspended, a large number of shoe orders may enter the Chinese market.

To this end, Ningbo customs reminds enterprises at the port level to control the quantity of leather shoes exported to EU, and avoid concentrated exports in the second quarter as far as possible, so as not to provide the EU shoe manufacturers with the truth of restarting anti-dumping procedures.

Because trade barriers are likely to be built again at any time, the EU market is much less attractive than Brazil and other countries and regions.

Strategic turn:

Factories, shops and pfer positions

The anti-dumping duties imposed by the EU are not entirely a disaster for China's footwear industry. Some domestic shoe manufacturers have begun to pfer production bases to third countries to avoid anti-dumping risks from the EU.

"After 2006, we were slowly opening a market in South Africa and some North American countries and established a relatively stable partnership. Now if we are going back to redo the EU market, I don't think we will accept it."

Dongguan a private enterprise official said.

He gave the reporters a metaphor, which is like that before everyone rushed to the bridge, and later the bridge was jammed. "But we finally have to go. We can only abandon this bridge and change other ways."

In the Wusu Rees city of Russia, the Wenzhou Kangnai Group invested 2 billion yuan, and jointly built a 2 million 280 thousand square meter industrial park with an annual output value of 24 billion yuan with Heilongjiang Jixin industry and trade group.

"Not only shoemaking, but also wood processing are also in our planning. Besides building our own factories there, we are also preparing to attract other enterprises in Wenzhou to go out.

After the scale of the park has been formed, the products that are often subject to trade barriers such as clothing, leather shoes, lighters and so on are pferred out, leading the Wenzhou enterprises to "collectively break through" and cross all kinds of trade barriers.

Some shoe makers from Zhejiang also began to build production lines in Russia and Nigeria. Wenzhou shoe leather industry association is also leading the establishment of "overseas production Industrial Park" of Chinese shoe companies in the EU to circumvent anti-dumping restrictions.

At the same time, Kangnai began to try to bypass the middle dealers and directly enter the EU local market.

"A few years ago, Kangnai began to open stores and counters in Europe and the United States, and now there are about more than 100 stores."

Zheng Laili revealed that Kangnai plans to increase the number of counters in overseas stores and shopping malls to 1000 in 5 years.

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To bypass the middleman directly to consumers, at least let Kangnai's profit margin increase by more than 10%.

AOKANG has taken the same strategy.

Wang Hailong, manager of the Propaganda Department of Zhejiang AOKANG group, told the newspaper that AOKANG plans to buy local sales network after the plan to open stores in Europe a few years ago.

Some EU importers suggested that Chinese shoe companies should be re exported to the EU through third countries.

"Although the price is 1 to 2 dollars higher than the original price, it will increase the cost, but the EU importers are basically acceptable."

Wang Hailong said.

According to Wang Zhentao, AOKANG is stepping up its efforts to develop the India market. "We will build factories in India, build our production lines there, and build our own sales network and channels."