Chinese Shoe Companies Resist EU'S Anti Dumping Policy

In February 8, 2006, the EU's anti dumping alliance against China footwear products was established in Guangzhou. In March 8, 2006, the trade associations of Guangdong, Quanzhou and Wenzhou, the three major shoemaking enterprises, spontaneously formed the "EU anti-dumping alliance". In October 23, 2006, AOKANG group first announced a lawsuit against the European Union Court, accusing the European Union of levying the anti-dumping duty of 16.5% of China's footwear enterprises, which is not in conformity with the relevant laws of the European Union.

Immediately after that, Tai Ma, Jin Lu, new Hong Kong dollar and other shoe enterprises also announced appeals one after another. On October 8, 2008 ~10, the European Union announced the sunset review decision. The three shoe manufacturing bases in Zhejiang, Guangdong and Fujian have been convened to deal with the coordination meeting.

This is not an ordinary international safeguard.

In this trade conflict known as the Sino European shoe war, Chinese enterprises did not remain silent from the beginning, but actively counterattacked.

China's shoe industry has chosen to "bright sword" and embarked on a hard road to safeguard its rights.

"We are in an unprecedented period of difficulty. The EU's move has pushed many shoe companies in Wenzhou to the brink of precipice."

Xie Rongfang, Secretary General of Wenzhou shoe leather industry association, said in an interview with our newspaper reporters.

In the past few years when the European Union anti-dumping on my leather shoes, Xie Rongfang has not remembered how many meetings she has held with shoe companies, how many times she has informed them, but every time she brings up the EU anti-dumping, she is always in a state of agitation.

Reporter learned in the interview that Wenzhou shoe enterprises suffered serious damage this time.

Especially since last year, affected by the financial crisis and other factors, leather shoes enterprises obviously feel the chill.

Xie Rongfang provided data to reporters, last year, Wenzhou leather shoes exports to the EU 21 million 298 thousand and 200 pairs, the amount of 222 million 830 thousand and 700 U.S. dollars, down 18.88% and 5.97%, respectively.

"These figures fully show that the export volume of Wenzhou leather shoes to Europe is decreasing, while prices are stabilizing. The EU's goal of restraining China's shoes exports has reached, and there is no reason to extend anti-dumping measures against Chinese leather shoes again."

Xie Rongfang said.

It is understood that after the EU imposed anti-dumping duties on Chinese leather shoes, Wenzhou shoe enterprises actively readjust their product structure. At present, Wenzhou's shoes exported to the EU have changed from genuine leather shoes to non leather shoes. Meanwhile, synthetic leather shoes have opened up the American market which weakened consumption due to the financial crisis.

Xie Rongfang said that the Jindi shoe industry is the largest number of export leather shoes enterprises in Wenzhou. Before the whole export to the European Union, from 2007, the export of leather shoes of Jin Di shoes industry dropped by 91%, and the export of leather shoes increased by 120%.

The Dongyi footwear industry, which ranks second in exports, has shifted its main export market to other non EU countries such as the United States.

Wenzhou shoe enterprises suffer severe damage, and Fujian shoe enterprises are also having a bad time.

Pan Yangzheng, Deputy Secretary General of the Fujian footwear and footwear import and Export Chamber of Commerce, said in an interview with our reporter that the EU imposed anti-dumping duties on Chinese leather shoes, coupled with the rising cost of footwear and fierce competition in recent years, and the shoe industry in Fujian suffered huge losses.

"As far as I am concerned, after years of sharpening, Chinese shoe enterprises have gradually absorbed the pressure from EU anti-dumping, and some of the poor enterprises have been eliminated, while those strong enterprises continue to move forward, and the EU does not have to continue to get entangled in anti-dumping issues."

Pan Yangzheng said.

In the view of Pan Yangzheng, the dispute between China and Europe shoe trade can be described as a tiredness war, and the recent frequent anti-dumping investigation is worrying him.

"It has not yet come out of the shadow of EU anti-dumping, and my footwear products have been subjected to 3 anti-dumping investigations in more than two months. No such precedent has ever been seen before, which has released a strong signal of protectionism in international trade.

Chinese enterprises should respond positively, and at the same time, the government and trade associations should do their best to negotiate. This is not only a trade contest, but also a political game.

Speaking of Brazil, Canada and Argentina recently launched an anti-dumping investigation on Chinese shoes, Pan Yangzheng feels that the situation is serious.

It is understood that in December 31, 2008, Brazil decided to start anti-dumping investigations on China's shoe imports.

Following that, Canada and Argentina also launched anti dumping sticks against Chinese shoes.

To fight back is the best choice. For Chinese shoe companies, counterattack is the only choice.

In the process of dealing with EU anti-dumping, the large domestic shoe making enterprises represented by AOKANG group are always at the forefront.

"No matter how complicated the procedure is and how hard the work is, the Chinese shoe enterprises will never give up their voice of defense."

Wang Zhentao, President and chairman of AOKANG group, is playing the role of holding the banner and shouting loudly.

In the interview, reporters learned that domestic large-scale shoemaking enterprises even launched the "two line operation" plan: on the one hand, actively preparing materials, other United Nations shoe enterprises collectively responded to sunset review; on the other hand, from 2006, AOKANG and other Chinese shoe enterprises launched anti-dumping proceedings against the European Court of Justice. At present, the lawsuit has been completed in written defense procedure.

"In 2006, we organized enterprises to sue, because of lack of experience and suffered defeat, so that the European Union imposed anti-dumping duties for 2 years. During that time, Chinese shoe enterprises were very hard.

After many rounds of confrontation, Wenzhou shoemaking enterprises have gradually matured, and litigation is becoming more mature and organized.

We hope that the government will be strong enough to win the lawsuit together.

Xie Rongfang said.

She told reporters that in the face of the European Union's sunset review, enterprises in Wenzhou are actively preparing materials, and other shoe companies are rich enough to make money and exert their strength.

Pan Yangzheng said that Fujian shoe enterprises are also working together to cope with the sunset review and work together to fight the trade war.

Zhou Jiajia, director of the Fair Trade Department of the China Light Industry Arts and crafts import and Export Chamber of Commerce, said that the performance of Chinese enterprises can be excellent in the leather shoes anti-dumping investigation.

She said that the Chinese side organized more than 60 involved enterprises to submit the questionnaires issued by the European Union on time, of which 7 were selected by the European Union as the sample survey enterprises, and a unified lawyer was employed to carry out the non injury defense. This fully indicates that China is willing to cooperate with the investigation of the European Commission.

In the interview, Xie Rongfang repeatedly stressed that Wenzhou's exports to the EU's shoes are not inferior low-priced shoes. The EU's anti-dumping mainly deals with the leather shoes of China's exports, which belong to the middle and high grade shoes. The EU's anti dumping conceals political purposes. On the other hand, China's export shoes to the EU are cheap and beautiful, which are loved by European consumers, which is one of the bargaining chips for us to negotiate with the European Union.

She said she hoped that more shoe manufacturers would take part in the sunset review. Meanwhile, shoe companies should use all opportunities and occasions to strengthen exchanges with the European Union. This would also help the European market to enhance understanding of Chinese shoes, reduce trade frictions and promote the footwear industry in China to move towards the international market in a more concentrated manner.

Background information: after the cancellation of the quota management of footwear exported to the EU in December 31, 2004, the European footwear Federation, led by Italy and Spain, made an appeal to the European Commission on the pretext of my substantial increase in the export of footwear in the EU, and asked for anti-dumping measures on footwear exported to China including 33 tax numbers.

In July 7, 2005, the European Commission decided to carry out anti-dumping investigations on the leather shoes that I exported.

After a year's investigation, in October 2, 2006, the European Union reluctantly passed the anti-dumping case in spite of my strong opposition and the opposition from 12 other members of the country, and voted for the anti-dumping duty on my leather shoes for 16.5% years for two years.

When the 2 year deadline for anti-dumping measures against leather shoes expired, the European Union decided, in October 2, 2008, to review anti-dumping duties on leather shoes imported from China for a year to decide whether to extend anti-dumping measures.

More clothing investment information, click here to enter the responsibility editor: Wang Xiaonan