AOKANG Wins Anti Dumping "Foreign Lawsuit"

Dialogue with Wang Zhentao

"You can be killed, you can't be scared to death."

Reporter: what do you think is the origin of the anti-dumping lawsuit?

Wang Zhentao: officials from the European Union did not understand China at that time.

Lack of research.

They were afraid that Chinese leather shoes would hurt their employment.

6 years later, the whole world knows that China is a big market. European enterprises also want to sell their products to China. If the EU sets up trade barriers against China again, it has to consider the corresponding consequences.

Reporter: what do you think is the significance of this lawsuit?

Wang Zhentao: we hope that through this case, Chinese entrepreneurs will be more daring and dare to protect their rights when they go out.

We put the existing cases here, other enterprises can learn from similar problems, do not be afraid.

China is not only the shoe industry, but also the photovoltaic industry.

Reporter: after losing the lawsuit in the first instance, 4 other enterprises have been suspended. Why do you insist on appeals?

Wang Zhentao: people can be killed, but they can not be scared to death, even if they are facing the European Union.

Although it is not cost-effective to fight the lawsuit in terms of our own business accounting, I think entrepreneurs must have this sense of responsibility.

There are 1240 Chinese shoe making enterprises involved in anti-dumping, involving 2 million labor force, and anti-dumping is jeopardizing their jobs.

I do not rely on a single hot blood either.

Although I lost the first instance, I have a deep understanding and full confidence in the lawyers we hired. I know that they are not acting for money in this case. They have career aspirations and aspirations.

Our lawyers went to the factory to investigate and investigate several times. Finally, we concluded that the European Union's identification with us is inconsistent with our real situation, and we are confident that the appeal will succeed. Even if we fail, we can get a clear view.

Reporter: the lawsuit has been fought for 6 years. What are the effects of the enterprises?

Wang Zhentao: I haven't held it. "

The idea is to pay tuition fees.

Sure enough, in the past 6 years, our business has grown up because of this lawsuit.

6 years ago, our company did not have a separate legal department, and only two legal officers were affiliated to other departments.

In the 6 years, we realized the importance of law. Now, more than 10 legal personnel have set up a special legal department. They have obtained a rare opportunity to learn in this lawsuit.

In addition, through this lawsuit, we have made in-depth exchanges and exchanges with our European counterparts, and made our contact with government officials and European entrepreneurs really understand China and AOKANG.

Reporter: what do you think will be the future of China's industry associations?

Wang Zhentao: China's industry associations can do more things, such as: group visits abroad, and missions to foreign institutions.

First, the association will "go out" and spread the services first so as to facilitate the "going out" of Chinese enterprises.

There are not enough talents and financial resources in a single enterprise, but the association has its advantages: resources sharing, and it is easy to communicate with foreign industries in depth.

Reporter: as China's production costs rise, is the possibility of "made in China" falling into trouble in overseas dumping?

Wang Zhentao: indeed, 6 years ago, EU officials did not understand China. They now look at China differently than they did 6 years ago.

Over the past 6 years, China's economy has developed rapidly, the domestic market has become larger and larger, the income level of ordinary people has increased greatly, the annual growth rate of labor wages in coastal areas has reached two digits, and the wages of Europeans have not increased much.

The eighteen point is that by 2020, the per capita income of urban and rural residents will double.

After 6 years of contending with the European Union, AOKANG finally won the lawsuit.

Wang Zhentao talked to employees in factories.

AOKANG wins anti dumping "foreign lawsuit"

Customer reclaims 6 years' anti-dumping duty

All shoe industry in China benefit from "knock out".

In November 15, 2012,

The overthrow of the first instance ruling made by the European Court of first instance lasted 6 years, and was appealed to the court because of not taking the European Commission's anti-dumping duties on China's leather shoes industry. The AOKANG shoe company of Wenzhou finally waited for what they wanted.

This reporter recently visited Wenzhou, listening to Wang Zhentao and related people about their "knock" the EU's story.

Mention of Wenzhou, people will think of leather shoes for the first time; when it comes to leather shoes, people will think of Wenzhou for the first time.

There are numerous stories about leather shoes in Wenzhou.

EU anti-dumping, 20 thousand Chinese workers are unemployed.

About 20 years ago, the shoe manufacturers in the Pearl River Delta and Wenzhou in Zhejiang emerged in the international shoe industry. They produced cheap and inexpensive leather shoes and quickly conquered European and American consumers.

Wenzhou AOKANG is one of the representative enterprises.

The emergence of China's shoe industry has made Europeans feel complicated. On the one hand, European people can wear shoes with higher cost performance. On the other hand, the European shoe industry has been hit hard.

As a traditional manufacturer of leather shoes, the shoe industry in Italy and Spain has rebounded especially, and they have begun to try their best to reject the terrible opponent of Chinese leather shoes.

Under the lobbying of these stakeholders, Europe began to impose "import quotas" restrictions on Chinese leather shoes in the 90s of last century, and the number of Chinese leather shoes entering the European market was set in advance, and the extra part should be subject to additional taxes.

In the first few years of twenty-first Century, the EU set a quota of 140 million pairs of leather shoes imported from China, and the excess part would be subject to 23% punitive tariffs.

After China joined the WTO in 2001, this unreasonable trade barrier was difficult to sustain. In 2005, the EU lifted the quota restrictions on Chinese leather shoes, and the Chinese shoe industry was thrilled.

This great good news can be expected. Wang Zhentao has already prepared for it. In 2004, the company's International Industrial Park was put into operation. It is estimated that the annual output of 3 million pairs of leather shoes will be mainly exported to Europe.

It didn't last long. When Wang Zhentao was ready to rush to Europe, in July 2005, the bad news came: the European Commission decided to levy anti-dumping duties on leather shoes imported from China since October 5, 2006, with a duty rate of 16.5% for a period of 2 years.

Although the anti-dumping duty does not need to be directly handed over by Chinese manufacturers, the European Purchasing Association tries to allocate the new cost to the manufacturers when negotiating.

Under the influence of EU anti-dumping, the annual target of 3 million pairs of AOKANG International Industrial Park has not been completed for several years.

On the macro level, according to statistics from the China Leather Industry Association, the anti-dumping duty has resulted in a 20% reduction in the output of Chinese leather shoes exported to Europe, causing about 20 thousand workers to lose their jobs in China.

Five shoe companies counterattacked, and ignored the European Court of justice.

What is dumping? - a state's enterprise sells goods to another country at a price lower than its domestic market price or cost.

According to introduction,

When arbitral exports of Chinese shoes constitute dumping, the price of a third country Brazil is used as a reference to estimate the cost of Chinese shoes.

Li Haijun, manager of AOKANG shoes International Trade Development Department, said that this is obviously unreasonable, because the cost of shoemaking in China was obviously lower than that of Brazil, and it could not be assumed that Chinese shoes were cheaper than Brazil's cost price, and it was dogmatism that Chinese shoes were dumping at below cost price.

AOKANG is angry at the decision of the European Commission on anti-dumping.

"Not in silence, but in silence."

Wang Zhentao decided to be an "emerging bird".

In May 18, 2006, Wang Zhentao joined the 100 shoe industry bosses in Chongqing and jointly issued the "Chongqing declaration", calling on Chinese shoe companies to actively safeguard their rights.

Wang Zhentao, as the "leading brother" who sounded the assembly number, visited the Ministry of Commerce, the Ministry of foreign affairs, the China Leather Association and experts on WTO issues, and received support from all sides.

4 days later, in May 22nd, as a representative of the industry, AOKANG's "protest group" came to the scene of the European Commission's "anti-dumping hearing on shoes products to China" held in Brussels, Belgium.

However, they finally failed to persuade the European Union, and the anti dumping order came into effect in October 5th.

Subsequently, the "Chongqing declaration" condensing industry unified action force collapsed instantly.

"Most of my colleagues think this way: I am just a small private entrepreneur. What can I do to challenge the European Commission? Is this not an attack on eggs?"

This is what living Lei Feng did. "

Wang Zhentao told reporters that if only from the cost and income of their own consideration, AOKANG did not need to take the lead, because foreign trade accounted for a small proportion of AOKANG's output value.

Nevertheless, AOKANG joined the other 4 shoe manufacturers in Guangdong and Zhejiang to bring the European Commission to court.

The lawyers they employ are one of the few experts in the field of anti dumping in China.

In December 2006, Pu Ling dust submitted a petition to the first instance court of the European Union, suing the EU's decision making body, the 16.5% anti-dumping duty imposed by the EU Council on leather shoes in China, which is not in conformity with EU law.

After lengthy reply and trial, the court of first instance dismissed the claims of the 5 companies in March 2010.

The reversal of the lone army is not just AOKANG's victory.

Previously, the European Commission has set a period of 2 years for the anti-dumping duty. After the expiration of October 2008 2 years later, the European Commission will review the anti-dumping duties.

In January 2009, the European Commission's review panel arrived late, and 3 reviewers came to China to verify the situation of representative shoe companies such as AOKANG.

According to the request, Wang Zhentao spent a lot of manpower to sort out almost all accounts related to the production and sale of the enterprise.

At that time, Li Haijun was responsible for greeting and accompanying the review panel.

However, it was very busy. In December 2009, the EU Council decided to extend the anti-dumping duty on leather shoes to China for 16.5% months for 15 months, which began in January 2010. This has brought a heavy blow to Chinese shoe enterprises.

In March 2010, when the European Court of first instance ruled 5 Chinese shoe companies vying with the European Commission, China's shoe industry was in despair.

It is understood that the first instance took more than 3 years, 5 companies spent more than a million yuan in litigation costs, AOKANG spent about 2000000 yuan, and eventually the money was wasted.

4 other shoe companies decided to "end here", but Wang Zhentao wanted to continue to "knock down" because if no one appealed, the EU would probably end up with a 5 year anti-dumping duty within 15 months of extension.

about

In the case of trade barriers and disappointing first instance encountered by the European Union, the Chinese government appealed to WTO in April 8th, requesting the establishment of an expert group to formally launch the WTO dispute settlement expert group proceedings.

The government's attitude inspired Wang Zhentao's morale.

What is more important is that the lawyer of Pu Ling Chen has a good mind.

Wang Zhentao always believed in the professional ability and dedication of Pu Ling Chen. After discovering the breakthrough of the case, Pu Ling Chen also drew a heart to Wang Zhentao: "if the appeal is lost, I will go out other than the most basic expenses."

In March 2011, a good news came from Europe: the European Commission announced in March 16th that it had suspended anti-dumping duties on Chinese leather shoes since March 31, 2011.

In this regard, the anti-dumping sanctions imposed by Chinese shoe companies for nearly 5 years have been declared to a temporary end.

AOKANG's appeal has been delayed. The end of the anti-dumping duty gives people reason to believe in AOKANG.

Finally, in November 15th this year, the high court of the European Union issued a verdict, and AOKANG won the final victory because of the technical critical point of the law, which overturned the first instance ruling of the European Court of first instance.

"The success of AOKANG has invalidation of the anti-dumping duty imposed by the European Commission on leather shoes in China. The European Commission will compensate AOKANG for its two litigation costs ($about 5000000).

European importers and exporters who have trade relations with AOKANG can also return the anti-dumping duties imposed on the European Union in 6 years in principle.

Pu Lingchen said.

Chinese enterprises should "go out" and expand their brands and channels in the future.