After battle for several months, the judgment about the fate of China shoes is in the surface. On March16,2006, 25 member countries of EU pass the resolution for China shoe leathers anti-dumping. EU committee make the judgment on March.23 that they will impose half-years temporary anti-dumping tax during six months since April.7. The tax rate transit from 4.8% to 19.4%, except leather childrens shoes and high-tech sports footwear. During half year from April to October, EU committee will decide to take anti-dumping measures for five years.
China shoes enterprise invest RMB 3million to conduct harmless answer.
One news communiqu issued on April.23 by EU Trade Committee said that taking anti-dumping measures is aiming to punish the "unfair trade" leaded by China and Vietnam and remove"the harm arouse from unfair competition",
EU told to board chairman of Guangdong Chuangxing Footwear Industry Co.,Ltd , the initiator of the answering league for EUs anti-dumping of China shoes that China enterprise need prove that the depression of EU shoes industry is not leaded by the import and export of China shoes, only which can lead to "harmless answer". For it, the league have got the support from some countries relative with EU in benefit and can be anticipated to take concrete probative statistic. Wu Zhenchang said: "This time, We will offer the concrete statistics which can be considered as the reference for negotiation between China government and EU to China government."
Wu Zhenchang claim that in the pattern of global source, imposing more 19.4% anti-dumping tax will lead to the loss of competitive advantage of China shoes enterprise ,even in the dry tree. Therefore, China shoes enterprise will invite employ EUs most authoritative investigation agency who can provide the most detailed and persuaded analysis report to support harmless answer. According to the rule of WTO. Harmless answer need prove that China shoes import wont lead to the depression of EU and China shoes have not hurt EU shoes industry.
Wu Zhenchang also denote that the critical problem is not imposing anti-dumping but the shortage of law and evidence. Besides help China government and chamber of commerce, association negotiate with EU, league is also collecting capital to conduct harmless answer and invite lawyer for lawsuit. The cost for answer reach nearly RMB3million, however, Wu Zhenchang also show that cost is not problem while many shoes enterprises also show that they will pay for this answer.
EUs anti-dumping will hurt others as well as himself
It is much impossible that the phenomena appear in economy globalization "decline together, prosperous together"will recur during anti-dumpi8ng. The anti-dumping measure of EU will pose negative influence to EUs local shoes industry and customer. On one hand, anti-dumping tax will increase the production cost of every shoes which is charged by customer; on the other hand, shoes supplier of over half of EUs retailers is in China and Vietnam, so importer and exporter is difficult to adjust source direction if Asia product is restricted.
General manger of Aokang Group Import and Export Co. think that EUs anti-dumping will result in the loss of opportunity for the cooperation between local enterprise and China enterprise, who can supply mutually. Aokang and Italy GEOX Co. have cooperated for three years-- Aokang produce 1million shoe leather which can be reach 2million to 3million for GEOX, besides, Aokang will open 300 franchised stores in China for GEOX.
The board chairman of Wenzhou Saina Group --Chen zhe argue that his company will import machine equipment and material with Euro total value 5million annually. "The anti-dumping make our material & equipment suppliers in EU very nervous and be afraid of losing valuable China market ". The statistic show that Italys leather material and textile machinery is staple Wenzhou shoes industry want to import. Up now, 2%-30% material and over 50% shoes machinery is imported from EU countries such as Italy etc.
The statistic from EU statistic bureau show that EU shoes exported to China is $39.03million, 1.25million pairs, increased by 34.45% and 43.68% respectively compared with 2004, including Italy $11.91, increased by 35.19%; Spain $1.73million, 90000pairs, increased by 17.69%, 136.84%.
The chairman of China light industry craftwork import & export trade association-Huo xiaohong show that China shoes industry have not harmed EU shoes industry which is declining before China enter into WTO, so there is no convinced reason for China enterprise grasping business with EU. "For the industry chain of shoes industry, EU have advantages in design, technique, equipment, brand and terminal distributing map while China have ones in labor, processing. There is competition and dispute between both sides, but cooperation is main rhythm". At present, China shoes industry introduce leather material, shoes machinery from EU, invite EU high-tech talent to produce EU famous brand product and conduct distribution in EUs marketing channel etc. EU committee should know that only playing their advantageous role and double-win through cooperation can lead to solve contradiction actively instead of cracking down which can not solve problem.
Lu ziming lawyer of Beijing Longping law office said when he interviewed by reporter that followed last year when China shoes enterprise break out of the limitation of quota, EU hold up the stick of anti-dumping this year which only explain that EUs trade protectionism is haunting, China shoes enterprise dumping with low price is only an excuse.
China shoes enterprise should promote technological innovation to escape being enslaved by others
If EUs anti-dumping to China shoes industry can influence China shoes industry? The secretary-general of leather association-Su chaoying show that China is the first shoes manufacture country and export country, this anti-dumping sum reach $7.3billion, spreading over 1200 China shoes enterprise and over 400 workers, he said, nearly 70% shoes is produced by China, China shoes export sum reach $125billion, leather shoes accounting for 60%, Japan 20%, EU 14.6%. During these years, the percent of China shoes exported to Russia increase quickly.
The statistic from China light industry craftwork import and export trade association show that the profit of China shoes exported to EU is about 5%-15%. Experts show that this anti-dumping carried out by EU is a baptism to China shoes industry who will experience a process of winning & discarding.
Correlative interlinkage
The review for China shoes anti-dumping
On June.30, July.7,2005, EU committee investigate on China labor insurance shoes which valued $52.55million and part leather shoes valued $7.36billion.
On the end of November,2005, EU finish checking on our 13 leather shoes enterprises mainly in Guangzhou and 4 labor insurance enterprises mainly in Wenzhou.
On February.23, the commissioner of EU trade committee show that EU committee suggest that they will impose half year temporary anti-dumping tax on China and Vietnam since April.7.
On March.8, shoes associations in Wenzhou, Guangzhou, Quanzhou three shoes basis establish "anti-dumping league" hand in hand and issue primary document in Guangzhou.
On March.12, the manager of EU Trade Relieving Department communicate with China shoes enterprise representatives in Hangzhou and show they will consider easing the restriction of China shoes because China labor shoes export have not conducted much influence on countries though labor insurance shoes is suspect to be anti-dumping.
On March.12, 2006, EU 25 countries vote to decide if impose anti-dumping tax on the leather shoes of China and Vietnam.
On March.23,2006, EU member vote to impose 4.8% custom on the leather shoes exported to China and EU, increased to 19.4% in October.
