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Wang Zhentao: The Thorn In The Growth Of AOKANG Shoe Industry

2013/1/10 16:11:00 38

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Wang Zhentao AOKANG Footwear China Footwear Industry

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 Wang Zhentao has become the object that Chinese shoe companies most want to curry favor with. .
 since half a month ago in November 18th, Wang Zhentao, chairman of the AOKANG shoe Limited by Share Ltd in Zhejiang (hereinafter referred to as AOKANG), learned that their phone call had become a news hotline after winning the anti-dumping lawsuit against the European Union. 
 Yes, Wang Zhentao and AOKANG have completed the most significant self redemption in the history of China's < a href= "http://sjfzxm.com/news/index_c.asp" > shoe industry < /a >. If placed in the context of China's frequent response to foreign anti-dumping cases, such stories may be more intriguing. 
In October 2006, six years ago, when Wang Zhentao was told that "AOKANG will become the object of anti-dumping in the European Union", he almost blurted out: "cheap selling of goods is still illegal." for AOKANG, which has 27 member countries, GDP is more than 16 trillion dollars, AOKANG is negligible. 
 strong > just a joke? Of course not. .
 no personal complaints. The EU imposed a 16.5% anti-dumping duty on more than 1240 Chinese shoemaking enterprises. The consequence is that from 2006 to the end of 2010, China's sales of leather shoes exported to Europe dropped by 20%, leading directly to twenty thousand unemployed. 
 to a certain extent, this is an upgraded version of the big events that Chinese manufacturing industry has gone out. In fact, with the further development of economic globalization, the purpose of Chinese and foreign enterprises is only one: breaking the formerly clear market and entering each other's territory. 
 the problem is that foreign goods are obviously not well prepared for cheap Chinese goods. The fact that the production and export volume of China's shoe industry has been ranked first in the world for many years is the fact that the main export markets are the European Union and the United States. But on the other side of the coin, there were more than 200 shoe manufacturers in Spain in 2005 alone, accounting for almost 1/10 of the total number of Spanish shoe companies. The number of unemployed people is over 400 thousand, which is equivalent to 1/3 of Barcelona's largest city. 
"P", which gave the EU an edible thorn. It is not hard to find out from the numerous anti-dumping investigation cases on the website of the Ministry of Commerce of China. Under the circumstances of trade friction, foreign countries are using instinctively the way to choke others' neck -- anti-dumping and countervailing investigations. 
 but soon there was a news that affected the mood of the European Union. In October 23, 2006, a private shoe company AOKANG, which existed three years before the European Union, joined the other four companies to prosecute the European Union. 
 they have no chance. Since China's accession to the WTO, only 11 cases of anti-dumping and countervailing cases have been prosecuted voluntarily in China, and the number of successful cases has been few. As expected, four years later, in March 2010, the European Union junior court dismissed the lawsuit filed by five Chinese shoe companies such as AOKANG, and announced that China's shoe companies failed in the first instance. 
P? Continue to appeal. You know, the possibility of winning is almost zero, and it costs a lot of litigation fees. It must be reminded that at this time AOKANG has no other side. What is even more surprising is that at that time, AOKANG's European exports were negligible in Wenzhou shoe companies. AOKANG wins, everyone enjoys. If you lose, you may get more saliva. 
What P can't understand is still there. In June of that year, AOKANG appealed to the European Union High Court separately. Wang Zhentao told China's economy and informatization: "half of the swimming race is going back or going all the way?" 
There was a glimmer of light in the thick clouds of P. A fact rarely mentioned is that as early as March 2007, Mandelson, the EU trade commissioner, said that the fact that with the further development of economic globalization, the EU's current trade remedy policies, especially anti-dumping policies, could no longer meet the requirements of the times. 
 especially important is that the EU has at least two mistakes in the anti-dumping cases of Chinese shoe enterprises. In the EU anti-dumping lawsuit, AOKANG's attorney, Pu Ling Chen, told China's economy and information technology: "the EU has violated the first article of the EU anti-dumping regulations, and there are obvious loopholes in the calculation method of the timing of the changes." 
It is a mistake to ignore P's courage and wisdom. Finally, the words of AOKANG's great victory began to spread at an explosive speed. Xie Rongfang, executive director of the China Leather Association and executive director of Wenzhou Leather Industry Association, told China Economic and information technology: "we will be more emboldened to visit the EU later." She believes that the biggest significance of AOKANG's success is the opening of a green channel for the docking between Chinese manufacturing industry and the world's manufacturing industry. 
 strong > don't worry. The story is far from over. .
 it is safe to say that although the a href= "http://sjfzxm.com/news/index_c.asp" > AOKANG < /a > anti-dumping lawsuit has been settled, other countries have not shouted "made in China". On the contrary, its appetite for anti-dumping investigations continues to expand. 
 the fact is that China is a big shoemaking country, not a shoemaking power. It is important to know the rules of the international market, but the more important thing is brand globalization. To this end, China's shoe enterprises, including AOKANG, must completely change their faces. 
 now, it is a good time for them to ask who I am. 
 {page_break} 
 unexpected outcome 
In the middle of November, Wenzhou was rather cold in P. Mist and rain from the Oujiang River tightly locked the Yongjia County town of Wenzhou, but the thousand stone AOKANG Industrial Park located in the southern suburbs of the county town was hot. 
 November 18th is a Sunday. In the afternoon, Wang Hailong, director of AOKANG propaganda and planning department, received a call from Pu Ling dust, saying that the European Union's anti-dumping decision was two. Wang Hailong immediately sent text messages to Wang Zhentao, who was meeting in Hangzhou. On the other side, Xie Rongfang also received a call from AOKANG CEO Assistant Zhou Wei: "big sister, AOKANG victory!" 
 after the announcement of the winning news, AOKANG headquarters became the focus of attention. Various reports about AOKANG's success were filled with the layout of many media. Wang Hailong told China's economy and information technology: "I didn't expect that with such multimedia, this time saved at least $100 million advertising fees." AOKANG became the most representative enterprise of Chinese footwear industry overnight. 
 there is a group of eye-catching data. In 2006, when AOKANG decided to prosecute EU anti-dumping cases, its exports to the EU in shoe manufacturers in Wenzhou were almost negligible; by 2012, AOKANG had ranked the top three. Moreover, the brand value of AOKANG became the first brand of China's most valuable brand footwear in 2012 by about 12300000000 yuan. In April 28, 2012, AOKANG entered the capital market and successfully listed on the Shanghai Stock Exchange. 
 unexpectedly, Wang Zhentao did not have much excitement. He said, "the reason I fought this lawsuit was that I would rather be killed than frightened to death." Six years were too long, and millions of dollars were not the original motive for his prosecution. 
 "if I were to win, I would not have fought the case at all. The EU is not a country or an enterprise. It is a consortium of 27 countries. We are only a private enterprise in China. " Wang Zhentao recalls. Zhou Wei told China Economic and information technology, "frankly speaking, I didn't expect to win at the time of the appeal of second instance, but I didn't expect it." 
 even Pu Ling Chen did not win in second instance appeals. "He told me at the time that the lawsuit could be fought, but there was no guarantee that it would win, with a probability of up to fifty percent." Wang Zhentao said that the EU did not expect AOKANG to win. They felt they had won. 
 but Wang Zhentao let all foreigners know that Chinese people also have thorns. In particular, he stressed that Chinese enterprises with thorns will carefully weigh the EU and the world when they play with the rules of the game. 
 dramatic interlude is that during these days of leather shoes industry activities conference, Wang Zhentao was preparing to get out of the elevator, and a familiar voice called him. "Wang, Congratulations, alas, this time we have also publicized it." It was originally a boss of leather shoes enterprises who once filed a first instance lawsuit with AOKANG. He sighed with self mockery. "Oh, how nice it would have been if I had followed you!" /p.
 indeed, AOKANG has made a good start for the whole industry with one's own strength. According to the insiders, AOKANG litigation has opened up a good mode of litigation and self insurance for Chinese leather shoes enterprises, and even this model can be used by other industries for reference. Wang Zhentao believes that if a Chinese leather shoe enterprise can win, those companies and industries with higher technology content will be more confident. 
 premeditated for a long time 
 any business topic is inseparable from the entanglement of interests. The EU anti-dumping investigation on Chinese leather shoes is also true. 
On the day of the "77 incident" on 2005, the European Union launched an anti-dumping investigation on China's export of European leather shoes in P. 
P needs to be explained that the total output of leather shoes in China has reached 2 billion 530 million pairs this year, almost 40% more than two years ago. Among them, the export volume of the single European Union alone reached 196 million pairs, which is equivalent to two times of the total export of leather shoes in Spain, the European shoe giant. At that time, the main price range of leather shoes exported to Europe was 50~60 euro, while Spain and Italy, Europe's big leather shoes, had a price range of 80~100 euros. 
 the impact of Chinese cheap leather shoes is quite frightening. In that year, more than 200 shoe manufacturers collapsed in Spain, accounting for almost 1/10 of the total number of Spanish shoe companies. The number of shoemaker workers who lost their jobs exceeded 400 thousand. In sharp contrast, the number of imported shoes in Spain increased by 30.5% over the same period last year, and the number of leather shoes exported to Spain alone exceeded 21 million 590 thousand pairs. Similar plots are also staged in Italy, France and Germany. 
 "I thought at the time that the EU would definitely do something for Chinese enterprises." Wang Zhentao's worry soon became reality. 
 in fact, the EU is very familiar with the rules of antidumping and countervailing investigations. When the market is hit, it is easy for them to find an excuse to carry out a "double reverse" investigation for specific objects. Chinese shoe companies must not sit still. In the first half of 2006, under the leadership of the Leather Association, the Chinese shoe enterprises participated in the Spanish footwear exchange forum in Spain. 
 absurd, the chairman of the European Leather Association actually used a number of photos of China in the 60s and 70s of last century as a basis for their anti-dumping investigations. What worries us is that some European entrepreneurs are laughing at their mouths. These entrepreneurs have come to China, but they still look at the eastern rivals with a joking attitude. 
 beyond surprise, Wang Zhentao, as China's "a href=" http://sjfzxm.com/news/index_x.asp "leather shoes < /a", attended the exchange meeting without any hesitation. He made a speech entitled "communication and cooperation". He not only expressed the willingness of Chinese footwear enterprises to cooperate with Europe, but also talked about the true situation of China's economic environment. 
On the night of P, some Chinese representatives in Spain found Wang Zhentao and praised him highly. "You speak very well and give us a sigh." 
 but the nightmare of Chinese shoe companies has not ended. On the contrary, from the filing to the investigation and the sentencing, the EU showed a rare high efficiency. In October 16, 2006, the European Union formally announced 16.5% anti-dumping duty on Chinese leather shoes enterprises. 
 the result is obvious. In 2006, the total export of China's leather industry reached US $39 billion, with a growth rate of 11.5%. The total export volume of footwear reached 7 billion 700 million pairs, and the total export volume reached US $21 billion, the growth rate decreased by 6.8% and 12% respectively. The total exports of leather shoes amounted to 1 billion 400 million pairs, accounting for 18% of the total export volume of footwear. 
 "they want to choke before Chinese enterprises are fully established." Xie Rongfang said. 
 {page_break} 
 AOKANG battle /p >
 when the anti-dumping case came true, Chinese leather shoes enterprises were at a loss. 
 Zhou Wei also recalled that in the first half of 2006, China's leather shoes industry had heated discussions on how to deal with EU sanctions. When the news of the anti-dumping duty came out, a terrible silence suddenly appeared in the industry. 
 Wang Zhentao's first reaction at this time was some slightly ignorant surprise. This also reflects the current situation of shoe enterprises in China at that time. They obviously do not understand or are familiar with the rules of WTO and the rules of international commercial warfare. Even some enterprises feel that exporting to the EU is nothing more than the same issue of domestic trade. 
 this is the most difficult self rescue in the history of China's shoemaking industry. The industry association first came out. "In 2005, we received the notice from the European Union to sanction US. Since then, the association has already given relevant training and lectures to enterprises." Xie Rongfang recalls. 
, she said, the first time when the anti-dumping duty was collected, the Wenzhou shoe leather industry association contacted the Guangdong Footwear Association and the Fujian Footwear Association to make joint protest. Xie Rongfang said: "at that time, we especially hoped that more enterprises would stand up, which would be good for our leather shoes manufacturing industry. Because this involves the interests of 1240 shoe companies in China. 
Wang Zhentao P did not have much courage to defend the European Union alone. He said that a private enterprise had a lawsuit with the European Union, which did not sound very realistic, so no one dared to fight the lawsuit. He followed everyone to do it. What needs to be reminded is that at this time, AOKANG's export to Europe is less than 5% of its total sales, and even in the list of Chinese shoe companies prosecuted in Europe, AOKANG's export volume is also in the latter position. 
In the evening of October 22, 2006 P, Wang Zhentao decided to fight the lawsuit. 
 Wang Zhentao is not alone. Three days later, in October 25th, at the seminar on anti-dumping held by the Ministry of Commerce, ten representative enterprises headed by AOKANG and Kangnai expressed their determination to prepare for the first time. As the first company to sue, AOKANG is determined to hold a news conference in Beijing to express its tough attitude towards EU sanctions in a unified industry. 
 but the situation is turning rapidly. Just a few months later, only 5 companies were suing the lawsuit. According to the relevant personage, the enterprises willing to appeal were reduced from 130 at the beginning to 30 and 10, and only 5 enterprises including AOKANG were left. 
 even so, when the news conference was held, only two of the other 4 enterprises came to attend. At the same time, Zhou Wei also heard that "anti-dumping litigation is not only an economic issue, it may be a diplomatic, political issue, to be handled with care" voice. 
 fortunately, 5 appeal companies jointly hired the same lawyer, Pu Ling Chen. At the end of his match, the two companies that did not come to the Beijing conference finally agreed to express their insisting on "protest" in the form of joint names of 5 enterprises. 
 it can be imagined that the anti-dumping investigation left a big shadow in Chinese shoe enterprises. 
 please come in .
 lack of understanding may be the crux of the war. 
 "perhaps Europeans do not understand us, so we have to be a bridge of communication." In the five companies such as AOKANG raised the banner of protest, Xie Rongfang and Wenzhou shoe leather industry association tried their best to "please come in and go out". 
 the first person to be conquered is the head of the footwear association of the main European Union. In fact, they do not care about China's demands. Before 2007, the relevant departments had invited the chairman of the Spanish Footwear Association Antonio many times through the embassy and the Spanish Association, but they were rejected by the other side. 
 but Xie Rongfang did not give up. She finally invited Antonio to Wenzhou through private relations. After he came, he took part in the celebration of Kangnai 25th anniversary, and was invited to visit the workshop of Wenzhou's main leather shoes enterprises such as Kangnai, AOKANG and red dragonfly. 
 "Oh! I'm late!" Antonio exclaimed after visiting the workshop. 
 in fact, Antonio is one of the EU's advocates of anti-dumping against China. But the short trip to Wenzhou really shocked the elder in the Spanish leather industry. He said: "Chinese shoe companies are first-class, and I really admire them." At this time, Antonio's mentality has also undergone subtle changes. While standing on the European Union's position, he was surprised to find that Chinese leather shoes enterprises were not as backward as he had imagined before. 
Another background that can not be ignored is that, in the same year, with the continuous decline of export volume and the rising cost of labor, energy and resources in the developed areas of Southeast China, the implementation of the policy of developing the western region and revitalizing the old industrial base in the west, the processing base of leather shoes industry is gradually realizing industrial transfer. P In addition, in order to deal with the EU anti-dumping investigation, domestic shoe enterprises are exported to the European market by the Macao special economic zone. These measures, to a certain extent, offset the adverse effects brought about by anti-dumping. 
 by increasing external communication and coordination among various enterprises and departments in China, the relevant departments in 2007 supported the 5 appeals enterprises such as AOKANG, and the situation became more and more favorable to AOKANG. 
What P does not know is that in April of that year, in order to promote the anti-dumping investigation to be resolved as soon as possible, the Chinese Ministry of Commerce invited Wenig, director of the European trade relief division, to hold a forum on trade remedy tools in Beijing. Zhou Wei once again expressed his dissatisfaction as a representative of AOKANG. He said: "most of China's shoe enterprises are private enterprises and there is no dumping at all. Levying taxes on us not only harms our interests, but also damages the interests of European consumers." 
At that time, the host of the conference hurriedly came out to make the rounds. AOKANG had a relatively big influence this time, and the mood was more urgent. The attitude was fierce. Let the European guests understand it. "I would be delighted if we had such a forum in Europe and invited officials from the Ministry of Commerce to listen to the voices of European enterprises," he said. 
 but these can not change the Europeans' inherent views in the short term. "European companies look down on us." Xie Rongfang recalled her visit to Europe in 2008. Xie Rongfang and Chinese Ministry of Commerce officials sat in a row, facing the jury of the European Union. The last one is Xie Rongfang's speech. Although she felt like she was making a real protest, the jury in the European Union obviously ignored it. 
 the result is not unexpected. In April 2010, AOKANG and four appeals companies failed in the first instance. 
 this also led to the sale of leather shoes exported to Europe by 20% from 2006 to the end of 2010 because of the EU anti-dumping duties, which directly led to twenty thousand unemployed. 
 {page_break} 
 last mile > /strong > /p >
 there is no retreat. After the European Union's first instance verdict, the vast majority of domestic shoe companies are desperate to believe that there is no possibility of turning over at this time. 
 Wang Zhentao is also hesitant. "At that time, we were very worried that not appeals would make the EU feel bullied. But if we appeal, the European Union will send people to investigate our enterprises frequently. Once we find a loophole, the image of China's leather shoes will be over. Xie Rongfang conducted in-depth exchanges with Wang Zhentao, though he advised Wang Zhentao mainly by "insisting on and continuing", but he also told him his worries in words. 
 obviously, the risk of further appeal is greater. 
 but this case is not unassailable. The news of the failure of the first instance lawsuit was Wang Hailong, who first told him that he found several loopholes in the European Union's trial of anti-dumping cases, and that if he continued to appeal, he would have the chance to win. 
 Pu Lingchen told China's economy and informatization: "by reading the verdict of the European Court of first instance, our lawyers found that the verdict was unfair." He found that in calculating the extent of damage caused by Chinese enterprises to Europe, the EU's practice actually violated the first article of the EU anti-dumping regulations: the anti-dumping duty can be applied to all dumping products that cause damage in the common body, because in fact, the price of leather shoes exported by the EU is higher than that of the European Union, which does not cause damage to the leather shoes products of the European Union. "AOKANG" 
 there is also a fatal injury. When it comes to commenting on the way and method of change in the EU, the timing of the EU's assessment of Chinese enterprises is unreasonable. The EU law stipulates that the time will be 10 days, but in fact, it will only give 5 days to enterprises such as AOKANG. 
 Wang Zhentao learned the news and immediately asked Pu Ling dust to fly to Wenzhou from Beijing, and had an interview with AOKANG headquarters building. 
 in fact, there is another concern in Wang Zhentao's mind. He said: "I was worried that if the lawsuit continued, would it be a bottomless pit? In addition to litigation fees and attorney fees, we do not know exactly what a situation is, whether we will charge a lawyer fee at every stage. After all, we are totally unfamiliar with the law. " 
Less than P, little known is that in the afternoon when Pu Ling flew to Wenzhou, at the six floor conference room of AOKANG headquarters building, a key meeting was made to decide whether AOKANG would protest. Wang Zhentao, Wang Hailong and AOKANG top six or seven decide whether to appeal or not. 
 let Wang Zhentao finally make up his mind that AOKANG litigation team's sincerity and persistence. "Pu lawyer told me that if you continue to appeal, you can not pay the lawyer fee, only the reimbursement to the central Europe ticket and accommodation fees. And the Propaganda Department of the company also insists on continuing to fight. He said. 
Less than P, the bottom line also comes from AOKANG's self improvement. Since the beginning of the first trial in 2006, AOKANG has made a lot of progress in the shoe industry. Wang Zhentao believes that if a shoe company wants to go out better, it should not only know how to protect itself through legal means, but also cultivate its internal strength. In other words, the European Union is not afraid to come to investigate AOKANG. 
 this is like the confrontation between the two masters, who is the first to withdraw. Wang Zhentao decided to touch the European Union stone with his egg again. In June 2010, AOKANG formally appealed to the European Union High Court. 
Less than P, it is noteworthy that Wang Zhentao will sue the European Union as an opportunity to exchange learning with the outside world, which is conducive to AOKANG as a driving force. It will focus on two aspects of product quality and management internationalization. In his words, this is "can not get the EU to grasp the handle". 
 in fact, the recent years of lawsuits against the European Union are precisely the stage of AOKANG's overall acceleration. 
 the most intuitive is the change of hardware. In 2008, when a shoe factory owner in Brazil came to the AOKANG workshop, he was surprised to find that AOKANG's leather shoes sewing machine used 16 thousand yuan / Taiwan equipment imported from Germany. Internationally, such devices are often adopted by enterprises such as LV, while AOKANG is using this device in large quantities. A visitor from Spain ZARA visited AOKANG shoe factory. As soon as he entered the workshop of AOKANG branch, he immediately said, "Oh! Nice! It's beautiful." 
 it is quite surprising that AOKANG's soft power is also very bright. In May 2009, Germany's Wortmann, the world's top women's shoe brand, gave the first order to AOKANG. Unlike pure foundry processing, AOKANG is also responsible for the design and development. 300 thousand the pair of ladies' shoes were finally made use of the soft and soft sole made by AOKANG, which gave AOKANG shoes a premium of 2~5 US dollars. 
 Wang Zhentao said: "on hardware, our Chinese shoe companies have already surpassed Europe." He said that the Chinese shoe enterprises dare to invest money in hardware, foreigners reluctant to do so. For example, many shoe factories in Italy are ringing loudly, unless they are really useless, they will consider replacing them. But the soft power of Chinese shoe companies is not enough. This is the core issue that restricts development. 
 there is no doubt that the superposition of these factors has made Wang Zhentao a "first person of anti-dumping in China's shoe enterprises" to a large extent. It is certain that all things in the world are closely linked. AOKANG's victory in the anti-dumping case against the European Union will have a far-reaching impact on both sides. The only question is, what will be the impact? 
 is like sitting on a seesaw: when a family is prosperous, another family will decay. This mysterious coincidence is just like their fate. For China's footwear industry and even China's manufacturing industry, foreign trade protectionism can not be stopped. 
 but on the contrary, only by showing the limitations and embarrassment of Chinese enterprises, will there be a new drama about the Chinese shoe industry and the development of Chinese manufacturing industry. Well, maybe 2012 is just a starting point.