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    Constant Friction Has Become A Hot Potato For Shoes.

    2007/9/26 0:00:00 10351

    Shoes Leather Trade

    While China's foreign trade keeps growing at a high speed, foreign trade friction is also increasing.

    Now, our enterprises often have to deal with some trivial and complicated things such as anti-dumping.

    A person in charge of the General Chamber of Commerce in Wenzhou, Zhejiang, told reporters at the end of the telephone that in recent years, faced with more and more trade disputes, some local entrepreneurs had to spare time to "run around the world" because once the "anti-dumping" was defeated, the blow to the enterprise would be fatal.

    Leather shoes and textile enterprises are most typical.

    Wang Jianping, chairman of Wenzhou hahan shoes industry, told reporters that foreign trade is like a hot potato, but it costs a lot to eat.

    Since China's accession to the WTO, various trade frictions have emerged one after another. When it comes to Spain, it must think of the "9.17 burn China shoes" incident. Speaking of Russia, "3.12 pull shoes incident" can not be wiped out.

    Now, the EU anti-dumping on Chinese leather shoes has suddenly been brought forward, which has virtually weighed heavily on the leather export enterprises of Wenzhou and even the whole country.

    According to statistics, China exported 810 million pairs of footwear products to the EU last year, with a total value of US $2 billion 230 million, while Wenzhou's exports amounted to US $1 billion 149 million, accounting for 1/4 of the EU market.

    Compared with shoe leather enterprises, Wenzhou textile enterprises seem to be worse.

    Because of the restrictions imposed by the United States and the European Union on textile categories, the quota of many enterprises in the region has been depleted. Therefore, the export volume of most enterprises in the third and fourth quarter has obviously declined, and even some enterprises are almost "zero export".

    "Last year, our business has nearly doubled its capacity, and now the product is limited to exports. The backlog of suits and shirts has long been piling up."

    The head of a well-known clothing company in Wenzhou appears to be very helpless. If the situation is not improving in the first half of next year, the enterprise will have to stop production.

    What is more worrying is that the production cost of enterprises is also rising due to the rise of energy prices.

    "The cost of business has risen by about 10%, but the product has not risen. We are under great pressure."

    The official told reporters that the cost of clothing, dyestuff, raw materials, electricity, coal, water, labor and other expenses made by garment enterprises has also increased significantly recently due to the rising prices of energy such as oil and coal.

    It is true that many enterprises are facing the pressure of survival when the price of raw materials is rising, the exchange rate of RMB is changing and the coal oil pportation is not relieved. They are even ready to carry out industrial pfer, open up the export of the third country to the EU, or set up a factory in some underdeveloped countries, and get the last process to be completed abroad.

    The experience of Wenzhou enterprises is only a microcosm. In fact, with the further increase of trade dependence, China's economy is facing more and more challenges.

    At present, foreign trade has accounted for 1/3 in the contribution of GDP growth, and the internal driving force of China's economy has been growing slowly. Under the condition of continued low consumption, the structural problems of Chinese economy will become more and more serious. According to customs statistics, the total value of China's foreign trade and imports and exports in the first three quarters of this year amounted to US $1 trillion and 24 billion 510 million, compared with last year's two months ahead of last year, it exceeded the trillion dollar mark, an increase of 23.7% over the same period last year.

    Of which, exports of US $546 billion 420 million, an increase of 31.3%, continue to maintain a high level of over 30%; imports of US $478 billion 90 million, an increase of 16%, is lower than the same period of export growth of 15.3 percentage points; and the cumulative trade surplus of 68 billion 330 million US dollars.

    In the first half of this year, net exports to GDP rose from 1.93% in 2004 to 4.86%, the highest in history.

    The main reason for the expert analysis is that the demand for domestic market is relatively stable under the condition of the state's macroeconomic regulation and control, while the supply of investment brought by the earlier fast investment has shifted to the overseas market, coupled with the expected further appreciation of the renminbi, and the early import of exports has been pushed back, resulting in a huge trade surplus.

    According to statistics, since the establishment of WTO in 1995, China has been the most frequently encountered anti-dumping investigation for 10 consecutive years.

    Since the beginning of this year, 12 countries have launched 33 anti-dumping investigations against China, with the number of large cases increasing, involving an increase of about 20%.

    In an interview with reporters, many experts said that the current "export road" that led to economic growth has been narrowing. The urgent task is to start the "third carriages" of economic growth consumption.

    "China is an economic power. Only by increasing the level of consumption itself can the public fully enjoy the fruits of economic growth, so as to effectively guarantee the smooth and healthy development of the national economy."

    Ba Sheng song, deputy director of the Finance Research Institute of the National Research Center, believes that consumption is undoubtedly the most important driving force for China's economic growth no matter from the steady development of its economy or the sustainable development of its own economy.

    We can see that export pulling should be slowed down. As stated in the "11th Five-Year plan", China's economic growth should gradually shift from the main driving force of investment and exports to the two wheel drive of consumption and investment, and the pulling of domestic demand and external demand.

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