Antidumping "Sequel" Or Cause Chinese Leather Shoes To Survive Difficultly

Most shoe companies in China reflect that demand is sluggish.

The EU has officially lifted 16.5% of China's leather shoes.

In October 28th, the WTO issued a panel of experts on China's EU anti-dumping measures against leather shoes to members.

The report of the panel of experts ruled that ninth (5) of the basic anti-dumping regulations of the European Union violated the relevant rules of the WTO.

At the same time, the anti-dumping authorities of the European Union also violated the requirements of pparency and other aspects of WTO's Anti-dumping Agreement in the original trial and retrial investigation.

With the cancellation of high anti-dumping duties and the favorable judgement of WTO, will the sky of the EU market become clearer for Chinese shoe companies?

From vision to disappointment

On the first day of the third phase of the Canton Fair, Liu Hongtao, deputy manager of import and export company of Weihai Golden Monkey Group Shoes Co., Ltd., came to the booth early.

At 10 a.m., the buyers in the footwear exhibition area were sparse. He was waiting for the arrival of the first guest.

Golden Monkey Group Shoes Co., Ltd. mainly produces leather shoes, and their export market is mainly in developed countries such as Europe and the United States. The United States accounts for about 45%, while the EU market also accounts for 20% to 30%.

Liu Hongtao told this reporter that in March this year, after the news of the EU anti-dumping duty was about to be cancelled, many domestic shoe makers including him had a little vision of the European market, and they thought the EU market might become more prosperous.

But over half a year passed, and such a situation did not appear.

"There is no obvious change. The old customer is the same, and the order is almost the same as last year."

Liu Hongtao said that although the export price of leather shoes has risen slightly this year, it is not the importer's initiative to raise the price, but because of the rise of various domestic cost factors.

Take the important shoe-making raw pig skin as an example, with the rise of pork prices, the price of pig skin has been rising all the way, which directly affects the cost of shoemaking.

Wenzhou Yi Wan Lian Shoes Co., Ltd. foreign trade salesman He Xiang also has the same feeling.

He told reporters that the EU market has not been greatly boosted for more than half a year after the cancellation of the high anti-dumping duties. "After an anti-dumping duty was abolished, an importer in Poland had an intention to increase purchases, but before they had a fixed purchase place, they would not change it in the short term."

Reporters interviewed several enterprises in the shoe exhibition area, and they all got the same answer.

Wenzhou footwear leader Kangnai Group International Trade Department told reporters that it is not realistic to expect an increase in orders and raise prices after the cancellation of anti-dumping duties.

He analyzed that the current economic environment in Europe is not good, which is a decisive factor in the increase of orders.

"The cancellation of anti-dumping duties is a positive factor, but the demand is not good enough to offset the good news."

He told reporters that in the case of market demand is not strong, the anti-dumping duty cancellation, the EU importers more choice is to reduce the terminal sales price to keep the market.

Asking for directions

Many shoe makers told reporters that in addition to taxes and fees, the European Union has the strictest limits on entry in the world, and there will be new changes every year, with more and more restricted materials, and Chinese shoe companies need to be vigilant.

Some industry experts say that the EU will not stop using trade remedy measures for Chinese enterprises because of a WTO ruling. The European Union is currently suffering from debt crisis. According to past experience, this is the sensitive period that most easily provoke trade disputes.

Zhang Handong, director of the Zhejiang international economic and Trade Research Center, said that solving the trade friction needs a fundamental change in the way of development. The current situation faced by shoe enterprises is the best footnote to this view.

Although the EU's anti-dumping measures against Chinese leather shoes have been terminated, the situation of the leather shoes industry in Zhejiang has not been completely improved.

On the contrary, a number of traditional manufacturing industries, including leather shoes, are facing greater pressure to survive in Wenzhou and other places.

"The underlying reason behind this is that we have entered the era of high cost.

The coastal areas of Southeast China, represented by Zhejiang, are densely populated, short of land and resources, and a large number of productive capacity. In the past, seemingly endless labor resources also dried up, and the overall production cost rose rapidly.

This is a far more profound survival crisis than trade friction. We must fundamentally change the development mode and speed up the structural adjustment.

Zhang Handong said.