China'S Shoe Makers Are Coming To EU For Urgent Defense

China Leather Association reminds: a considerable number of shoe enterprises will lose the European market, and may even withdraw from the shoemaking industry.

"Time is really too intense. We are actively preparing for it."

Wang Ying, Secretary General of the China Footwear Association of Light Industry Crafts Import and Export Association, is very worried because this week she will bring several Chinese shoe companies to the European Union to attend a hearing to defend China's shoes.

We must start with the European Union's anti-dumping investigation on China's footwear products.

In June 30th and July 7th this year, the European Commission put an anti-dumping investigation on China's labor safety shoes and some leather shoes, including labor insurance shoes involving $52 million 550 thousand, and the amount of leather shoes was as high as $730 million, involving more than 1200 shoemaking enterprises and about 1000000 people, and became the largest amount of EU anti-dumping history in China in the past 10 years.

The prospect of hearing is unclear. It is understood that before the end of November, the European Union completed the anti-dumping sampling inspection of 13 leather shoes enterprises and 4 labor insurance enterprises in China.

On the 12 th of this month, the China Leather Association issued a circular on the recent European Union's anti-dumping on footwear products in China (hereinafter referred to as "bulletin"). It is estimated that in the middle of 12 or mid January next year, the EU will make a ruling on the status of Chinese Enterprises' market economy status, and will make a preliminary anti-dumping case before April next year.

Before that, it is a necessary procedure for Chinese enterprises to take part in hearings.

"The worst plan is to impose anti-dumping duties on shoes."

Wang Ying analysis.

She said that the chamber of Commerce will organize several large domestic shoe companies to go to the European Union to plead at the hearing.

"We will express our ideas and represent the industry as a whole, and we will defer the anti-dumping issue and the industry without damage."

Zhejiang Seine is one of the shoe companies on this trip. According to Zhu Feng, Secretary General of Wenzhou shoe and leather industry association, the company has prepared relevant defense materials and has hired an international lawyer.

As a large enterprise specializing in the production of labor protection products, senna produces 3 million 500 thousand pairs of labor insurance shoes annually, and the European Union is the main selling market.

Among them, the EU carried out anti-dumping investigations on China's labor insurance shoes, involving $52 million 550 thousand in labor insurance shoes, and about half of the senna group, "about about 20000000 dollars."

Zhu Feng said.

"We can't predict the result now."

Wang Ying's attitude is particularly cautious, while Zhu Feng is relatively optimistic. "China's shoes are cheap and cheap, the EU is the biggest beneficiary, and the anti-dumping rulings on China's footwear industry will also cause significant losses to them."

Zhu Feng told reporters that the EU's antidumping investigation of footwear, concentrated in Guangdong, the most important part of shoes is Wenzhou.

"At least we should remain optimistic about the anti-dumping investigation of labour safety shoes."

According to Zhu Feng analysis, most of the shoemaking enterprises are private enterprises. Some of the materials and styles chosen are provided by the European Union. The technical standards are also formulated by the European Union. "Private enterprises can not sell shoes to the EU below cost."

There are also different voices within the European Union.

Italy is one of the most staunch supporters of boycotting Chinese footwear products to enter the European market. The chairman of the Federation of footwear manufacturers said: "the cost of a pair of leather shoes produced in China is 2.4 euros, down 10 percentage points from last year.

We can't even sell the raw materials at this price.

The average price of shoes imported from Italy is 22.18 euros per pair.

He said that for Chinese shoes, the EU needs to adopt the same political means as textile imports.

On the other hand, three EU member states of Holland, Sweden and Denmark are ready to join forces to prevent EU from levying anti-dumping duties on Chinese leather shoes.

Thomas Ostros, Sweden's minister of industry and trade, has revealed that the three countries will ask the European Union to suspend anti-dumping investigations on Chinese shoes, and hope that other EU members can join the action.

The prospect of a temporary anti-dumping duty hearing is unclear, and the horn of early warning has been blown.

According to the China Leather Association, the European Commission may implement the provisional anti-dumping duty ahead of time when the shoe companies have little market economic status.

According to the European Union's anti-dumping law, it is necessary to make a preliminary decision no later than 9 months after filing the case, so the time will be before April 6th next year.

The association's bulletin estimates that the recent increase in export volume does not exclude the possibility of an interim anti-dumping duty imposed by the European Commission in advance.

According to "bulletin", many domestic manufacturers have to ship the goods in the next 1-2 months or by the end of this year.

According to this analysis, EU importers may avoid importing Chinese products before the end of the year in order to avoid anti-dumping duties that may be launched early next year, so as to prevent the economic losses and the shortage of domestic footwear products due to the Levy of anti-dumping duties.

Due to the sharp increase in the number of Chinese exports, some European producers will put pressure on their governments and the European Commission, which may force the European Commission to levy provisional anti-dumping duties in advance.

"Our shoemaking enterprises should establish a strategy of branding and internationalization as soon as possible."

Zhu Feng said.

He gave a long-term strategy for the development of China's shoemaking enterprises, while the China Leather Association was an emergency weapon for domestic enterprises. The association reminded manufacturers to be alert to the introduction of provisional anti-dumping duties by the European Commission ahead of schedule.

For orders that have been signed, they should be completed on schedule and avoid losses.

For next year's production arrangements, we must consider the progress of anti-dumping cases, and do not blindly sign the bill to cause losses.

More seriously, the China Leather Association reminds us that a large number of enterprises will lose the European market and may also withdraw from the shoemaking industry.

The association pointed out that in the anti-dumping of footwear products, only about 150 leather shoes enterprises and 30 labor insurance shoe enterprises in China will be respondent, and the proportion of enterprises responding to litigation is relatively low.

According to the European Union's anti-dumping regulations, no respondent enterprises will be charged a high anti-dumping duty rate.

The Association expects that after the introduction of anti-dumping duties, the shoe industry will start to reshuffle, and enterprises without complaint should prepare ahead of schedule.

"If anti-dumping is established, this will be a heavy blow to China's shoe industry."

Wang Ying said with emotion.

It is understood that at present, China is the world's largest exporter of footwear and footwear, and the EU is the second largest footwear market in China, accounting for 14.6% of the total export volume.

According to customs statistics, by the year October, the number of footwear products exported to the EU has increased significantly.

In 2004, China exported 810 million pairs of footwear products to the EU, with an export amount of US $2 billion 180 million.

In 2005, it reached 805 million pairs in 1-10 months, an increase of 19.2%, which is close to the level of last year. The amount is 2 billion 600 million US dollars, an increase of 47.8%, which has exceeded the total amount of last year.