Wenzhou Shoe Companies Break Through EU Anti-Dumping Barriers

After experiencing a series of "anti-dumping" measures such as the EU anti-dumping and anti circumvention investigations, Wenzhou shoe enterprises have been actively upgrading their product mix, and have seen a drop in the volume of footwear products exported to Europe.

Taking the export of leather shoes, which is more seriously affected by the EU's anti-dumping, for example, from January to September, the EU's export volume of Wenzhou's leather shoes was 16 million 980 thousand pairs, down 9.04%, and the export average price was 9.25 US dollars per pair, but increased 14.43%.

Leather shoes increased slightly to European exports.

At the same time, Wenzhou shoe enterprises actively explore the Central Asian market, effectively guarantee export share, and eliminate the impact of EU trade barriers on exports.

Positive prosecution: let the European Union hear our voice. Since October 7, 2006, the EU has imposed a two-year anti-dumping duty on Chinese leather shoes and children's shoes for 16.5% years.

In September this year, we launched an anti circumvention investigation on the situation of the export of Chinese leather shoes to Europe by Macao.

According to the relevant EU regulations, if the export of leather shoes exported to the EU has been circumventing by Macao, the European Commission will impose anti-dumping duties on such products.

Some European importers have imposed provisional tariffs since April last year, or require our export enterprises to take part of the tax rate, or gradually reduce orders in China, and turn to neighboring countries such as India, Indonesia and Thailand.

Zhejiang exports nearly 1 billion pairs of shoes each year, and the largest export market is the European Union.

In the first month after the anti-dumping duty, Wenzhou exported the EU leather shoes products compared with the same period last year, the quantity and the value of goods dropped by 48.49% and 45.90% respectively.

In this case, many shoe companies have taken up legal weapons to safeguard their rights and interests.

In October 23, 2006, Wenzhou AOKANG group, the largest private shoe making enterprise in China, first announced a lawsuit against the European Union Court, accusing the European Union of imposing anti-dumping duties of 16.5% on Chinese footwear enterprises.

Then, Wenzhou Tamar group, Guangdong Foshan Nanhai Golden Shoe Industry Co., Ltd. and Guangdong Huizhou new Hong Kong dollar Footwear Co., Ltd. also announced appeals one after another.

In January 8, 2007, 3 months after the EU imposed anti-dumping sanctions against the Chinese footwear industry, AOKANG joined the three other appeals companies such as Wenzhou Tamar and held a "briefing on anti dumping litigation" by Beijing footwear manufacturers, and announced the establishment of an anti trade barriers cooperation organization.

Wang Zhentao, President of AOKANG group, said that the EU has already decided to impose anti-dumping duties on Chinese leather shoes. If it is tacit to acquiescence and tolerance, two years later, it may face higher anti-dumping duties.

The Chinese shoe companies have filed a lawsuit this year to let the EU hear the voice of Chinese shoe companies.

That is to say, if Chinese enterprises can endure these two years, they will formulate a policy of more than 5 years or even more, or impose higher taxes.

"If we win, the European Commission may therefore cancel the anti-dumping duty on Chinese footwear enterprises for the next 5 years.

But the European Union did not lose because they had been taxed for two years.

Even if we lose, we can learn a lot from it. "

Wang Zhentao said.

Actively participate in the exhibition: the international Dusseldorf shoes exhibition (GDS), held in from September 14th to 16th this year, has at least 50 Wenzhou shoe manufacturers participating in the exhibition.

Dusseldorf Exhibition (China) Limited project director Bai Jiao said that the exhibition area of Chinese enterprises on GDS was about 11000 square meters, of which Wenzhou shoes enterprises accounted for almost 1/3.

Dozens of Wenzhou shoe companies such as Kangnai, Tamar, sumet, Mercedes Benz, Italy, trend, Tai Chi and fulio are "Crazy" orders at this international shoe exhibition.

For Wenzhou shoes, GDS is very important.

Some Wenzhou shoemaker owners even said that the number of orders received on GDS decided the shoe factory's foreign trade fate for a year.

Li Guoguang, manager of Foreign Affairs Department of Wenzhou Jill shoes company, from the exhibition site feedback, is that dozens of shoe brands in Wenzhou are directly exhibiting by shoe manufacturers.

A total of more than 400 shoe models of the more than 40 shoe models presented by Guang Ji Da Shoes Co., Ltd. has about 400000 pairs of intentional orders.

Charlie, chairman of the footwear industry in Wenzhou, Xie Weiguo, said that Charlie footwear industry, which has participated in GDS since 1995, has had a good harvest from 1997.

The partnership with Carrefour was established through GDS.

Now, there are more than ten thousand pairs of leather shoes produced by Charlie every year under the orders of Carrefour, and the price of each pair of orders is more than 110 yuan.

Not only that, there are hundreds of thousands of pairs of shoes ordered by Peres and Charlie every year at Charlie.

Wenzhou Rio Tinto's Central Asian market has stepped back on the "Silk Road". Last year, the shoe makers in France once again took their sights back to the Central Asian market and stabilized their share in the overseas market.

Statistics from various ports in Xinjiang show that in 2006, the value of footwear exported from Xinjiang port reached US $963 million, which is nearly half of the export volume of shoes exported to Wenzhou in China.

The export of Chinese shoes from Xinjiang port to the West has been a major export trend in recent years, but the surge in exports began two years ago.

As early as more than ten years ago, "made in Wenzhou" had passed through land pportation to Xinjiang via central Asia. However, after opening up a stronger European and American market, Wenzhou businessmen soon abandoned this channel.

Recent signs indicate that Wenzhou shoe traders are sending their products to Xinjiang again. They hope to find a more secure and stable market through the large western border with many border trade ports and the eight countries of central and Western Asia.

Analysts believe that it is precisely because of several disasters, prompting Wenzhou shoes to accelerate integration into the international market.

The EU's policy of raising the threshold has forced some of the main export players of the footwear industry in Wenzhou to abandon and turn to Central Asian and Eastern European countries.

At the same time, Wenzhou shoe companies can also expand their share of the EU market by making use of the convenience of Eastern Europe close to the European Union.