AOKANG'S "Show" Of EU Antidumping Leader

April 22nd hearing European Union 5 years of Chinese leather shoes Anti-dumping The move, which undermines the interests of AOKANG, is also AOKANG Bring opportunities.

As a Chinese leader in the fight against EU anti-dumping, AOKANG group spent $3 million in the 5 years' fees only for EU litigation. The first time came out to appeal to defend Chinese enterprises. EU anti-dumping has become an important channel for AOKANG to establish its reputation in the industry.

At the same time, this has allowed AOKANG to be criticized for being "good at show" in a certain range, because people always mention the fact that AOKANG has limited business volume in the EU market. Some industry employees believe that AOKANG, a domestic brand, is "hyping" in a less important market.

So what did AOKANG do in the past 5 years? Are these actions alleged to be "speculation"? Did AOKANG do the work that other enterprises could not accomplish and assume the responsibilities of the leading enterprises?

start

In July 8, 2005, the EU carried out anti-dumping investigations on some Chinese leather shoes. AOKANG responded at the first time.

"Anti dumping is inevitable. Only discontent and protest are useless. We need to take the initiative to deal with it positively." Wang Zhentao, chairman of AOKANG, responded quickly. "In the face of trade barriers, only joint will have a way out. Only cooperation can develop. In the face of more and more anti-dumping pressures, shoemaking enterprises should set up organizations that should work together to deal with international trade barriers, share information and share funds, and jointly express their legitimate demands."

In the following year, in May 18, 2006, the EU's anti-dumping six party talks were held in Bishan, Chongqing, China's western shoe market.

Wang Zhentao, a representative of 100 shoe manufacturers, issued the first China protest against the EU footwear antidumping manifesto, the Chongqing declaration.

Zhou Shijian, President of the China WTO Research Association, Wang Zhentao, chairman of AOKANG group, Meng Yuhong, deputy director of the Fair Trade Department of the Ministry of Commerce, Zhang Shuhua, executive vice president of the China Leather Association, and director of Commerce Department of the Spanish Embassy in China, have expressed views on how Chinese shoe companies should deal with EU anti dumping sales.

In May 20, 2006, AOKANG sent representatives to participate in the "defense group" organized by the Ministry of Commerce and supported by the China Light Industry Arts and crafts import and Export Chamber of Commerce, and went to the EU to attend the "anti-dumping hearing on shoes products to China" held in Brussels in May 22nd. At the hearing, AOKANG pledges to protest against unfair EU anti-dumping decisions against Chinese shoes.

The representative of AOKANG believes that the price of Chinese leather shoes exported to the EU is very high and does not constitute anti-dumping at all. This is an unfair decision made by the European Commission to protect its own industry. The statement was unanimously endorsed by the majority of the delegates present.

Soon, the Spanish shoe manufacturers also sent an invitation to AOKANG. In June 15, 2006, Wang Zhentao went to Spain's city of Spain to attend the footwear industry forum, calling for unreasonable anti-dumping duties. In the city of Spain, this little city is peaceful and rich. Although the huge shoe making enterprises have been condensed into small family handicraft shops, many places here can make you feel the prosperity of the industry and highlight the exquisite workmanship of shoemaking.

Wang Zhentao did not come here to enjoy the beautiful scenery, but for a mission. Under the invitation of Calvo, chairman of the EU footwear Federation, Wang Zhentao, as the sole representative of Chinese footwear enterprises, attended the Spanish footwear industry forum held by Ali Kant and delivered a keynote speech, which was seen as a bargaining chip for Chinese shoe companies to win the EU anti-dumping final ruling. {page_break}
 

On the forum, Wang Zhentao delivered a speech entitled "promoting exchanges, cooperation and win win -- creating a new situation for the development of Chinese and western footwear industry". He stressed: Spain and China are big countries of footwear, and have extensive cooperation space. Cooperation is a win-win game.

"We always believe that their laws are objective and fair." Wang Zhentao said, "in fact, we have noticed some international voices and affirmed the behavior of AOKANG. This has made us more confident. From these voices, we also see the justice of the international community.

Three days later, Wang Zhentao, representing Chinese shoe companies, made a special trip to the European Union for a defence. At that time, his words were fierce, and Wang Zhentao recalled that we had nothing to worry about because we had done nothing wrong and did not break the law. "Later they took me to a very beautiful park for dinner, saying that I would like to invite you to dinner today."

Prosecution

After returning to Spain in September 2, 2006, Wang Zhentao decided to solve the anti-dumping problem through legal means.

This is because the EU formally launched a two-year anti-dumping duty on leather shoes originating in China, with a tax rate of 16.5%, and the total number of enterprises involved in China reached more than 1200. In the face of the EU's biggest anti-dumping case against China, when most enterprises were silent, in January 8, 2007, AOKANG and other Chinese private shoe enterprises broke out in silence, announced joint prosecution and actively responded to the anti-dumping case, fighting for the future of Chinese shoe companies.

In December 28, 2006, the appeal materials of AOKANG footwear, Tamar footwear, footwear industry and new HK $four footwear industry were formally submitted to the European Union Court in Brussels, Belgium. The European Court has also formally accepted the litigation request from Chinese shoe companies.

The Chinese lawyer, PL Ling, who represents the case, is the defense counsel for China's first anti-dumping case after winning the WTO entry. It is also the earliest and comprehensive success case of Chinese enterprises in the anti-dumping case, the attorney for Yunnan Malone yellow phosphorus anti-dumping case. According to him, the formal acceptance of a lawsuit is only the beginning of a long lawsuit. After the initiation of the proceedings, the European Commission and the Chinese enterprises will carry out two rounds of written defense in turn. After the conclusion, there will be another round of oral defense. Finally, the European Court will make a decision on this basis.

The main reply is written, and the written defense time of each round should be between 3 and 5 months. It is estimated that a set of procedures may take about 2 years.

Pu Ling dust analysis said: "from the point of view of damage identification, the EU is not in line with the WTO regulations, nor is it in line with its own" anti-dumping law ". This statement coincides with the attitude of the Chinese government.

In October 9, 2006, when Bo Xilai, Minister of Commerce, and van Nipp, visiting foreign trade minister of Holland, talked about the EU's anti-dumping measures on footwear products in China, the EU's anti-dumping measures against China's footwear products lacked the legal basis, undermining the legitimate rights of Chinese leather shoes manufacturers and not meeting the overall and long-term interests of the EU. The head of the Fair Trade Bureau of the Ministry of commerce also said, "respect and support domestic shoe companies to appeal to the European Court of justice". European Union ambassador to China Sai Japan amber said, "China's shoe companies are right to prosecute the EU."

Despite objections from some people, "two years' lawsuit has not yet been completed, and the tax time may be over." It was also said that this is a seemingly no result or has been doomed to "loss" of the lawsuit. In the face of such questions, Wang Zhentao admitted that if they simply acquiesced and forbearance, they might face a higher amount of anti-dumping duties two years later, and they might be postponed to 5 years later. At that time, Chinese shoe enterprises would be more difficult in the European market.

So in Wang Zhentao's view, the lawsuit brought to the European Union Court is to let the EU countries hear the voice of Chinese shoe enterprises' defense, and let other countries in the world also hear the voice of Chinese private enterprises. {page_break}
 

The European Union's anti-dumping action on China's footwear industry has "hit the nail on the head". In the second months when the EU imposed 16.5% anti-dumping duty on China's leather shoes, Wenzhou exported 430 leather shoes products to the EU, including 430 batches, 2 million 437 thousand and 800 pairs and 21 million 470 thousand and 900 US exports, down 32.71%, 37.80% and 19.80% respectively compared with the same period in 2005. Since the fourth quarter of 2006, many shoemaking enterprises have already failed to get orders.

Wang Zhentao stressed: "at that time, we did not fight for the lawsuit for which company, but for the whole Chinese shoe making industry and China's millions of shoemaking workers in the lawsuit, but also for the future of China's footwear industry."

Twists and turns

In October 8, 2008, a two-year anti-dumping duty was expired and entered the sunset review. 5 Chinese shoe companies, such as AOKANG, are proceeding in accordance with the judicial procedure in the court of the junior court of the European Union.

In October 2008, Wenzhou was sultry. There was no room in the small conference room on the third floor of the Wenzhou foreign trade and Economic Cooperation Bureau. There was a tense atmosphere in the air. In the conference room, Li Haijun of AOKANG foreign trade department found a seat in the back row and sat down. After the meeting, he learned that the EU announced in October 2, 2008 that a two-year anti-dumping duty expired in 2006 and entered the stage of review. The conference was specially hosted by the director of the Ministry of Commerce in Wenzhou.

At the meeting, Zhou Xiaoyan, director of the Fair Trade Bureau of the Ministry of Commerce, urged the Chinese shoe enterprises in Zhejiang, Guangdong and Fujian to act collectively and keep pace with each other and strive for satisfactory results in the EU's "sunset review".

"Sunset review" is a review procedure carried out by the European Commission after the expiration of anti-dumping. According to the results of the review, it will be voted again or cancelled, with a period of 12 months to 15 months, and the anti-dumping duty will still be levied during the review period. Whether the review can change the fate of Chinese shoe enterprises? The Chinese government, associations and enterprises are making efforts and expecting favorable results.

In January 12, 2009, the EU investigation officer went to AOKANG to conduct field verification. This day AOKANG foreign trade clerk Li Haijun got up very early, he was responsible for going to the airport to greet the European Union anti-dumping investigation team official. Prior to that, AOKANG received a letter from the European Commission, which said that, as one of the procedures for sunset review, the European Commission drew lots, and 7 Chinese shoe companies such as AOKANG will be the target of the European Commission officials' on-site verification, and informed that the specific verification time is January 12, 2009.

At that time, most members of the European Union opposed the extension of anti-dumping duties. "The EU's plan to extend anti-dumping duties on leather shoes in China and Vietnam for 15 months was defeated by trade officials in most EU countries on 19. This is a good news for Chinese shoe companies to fight against the anti-dumping duty, and the anti-dumping duty is likely to be abolished. Li Haijun said.

However, it is regrettable that, shortly after, the EU Council of ministers, despite the opposition of most Member States, voted to extend anti-dumping duties on leather shoes in China and Vietnam for another 15 months, which will be announced in January 3, 2010.

There were also bad news in litigation. In March 2010, the European Court of justice came to the news that five Chinese shoe companies, such as AOKANG, were dismissed.

Strive for

In June 2010, after the court of first instance dismissed the lawsuit filed by five Chinese shoe companies such as AOKANG, AOKANG formally appealed to the high court of the European Union. At this point, the other four abandoned, AOKANG single soldier assault.

"By reading the verdict of the European Court of first instance, we found that the verdict was unfair." In May 2010, Pu Ling Chen came to Wenzhou again to report to Wang Zhentao on the situation of the court of first instance of the European Union. {page_break}
 

"In terms of calculating the magnitude of damage, the practice of the European Commission actually violates the first article of the European Union's anti-dumping regulations. When commenting on the measures adopted by the European Commission to change the way and method of calculation, the European Commission's assessment of Chinese enterprises is 5 days, which does not meet the 10 day deadline stipulated by the regulations".

"Therefore, we can appeal to the high court of the European Union against these legal doubts and request the high court to review the trial procedure of the lower court. AOKANG still has a chance to win. " Pu Ling said: "no matter what the outcome is, we have to go through the legal process. This is a way of doing things."

This time, the arrival of Pu Ling's dust also brought another good news: the Ministry of Commerce has asked WTO to set up a ad hoc group on the EU's anti-dumping duties on Chinese leather shoes to hear the case. With the strong support of the government, AOKANG's confidence in continuing the legal process has also been increased.

In June 2010, AOKANG decided to continue appeals to the EU high court, and the other 4 shoe companies had to give up. But the development of the situation did not cause any unfavorable situation because of the reduction of partners. In fact, on the contrary, in March 2011, the leather shoes industry in China had a major turning point or victory, with the continuous efforts of the official and private sectors such as AOKANG. The EU formally cancelled anti-dumping duties on Chinese leather shoes.

In response, analysts said: "the EU's 5 year anti-dumping duty has long been very rare. From the European perspective, the reasons for its implementation are no longer sufficient. From the Chinese perspective, the pressure from the government and enterprises has been effective. It can be said that at the end of the time.

5 years of protest and wrestling have been successful, and AOKANG has gained joy and reputation in the process. It has experienced many setbacks, but it continues to invest energy and money. At this level, it is better to say that China needs such an enterprise to "show" than AOKANG.