One of China's top footwear manufacturers has condemned the
European Union for imposing a one-size-fits-all anti-dumping tariff
on leather shoes made in the country.
Wu Shouzhong, vice-president of Aokang, one of China's leading
footwear makers, warned at the World Shoes Forum in Beijing that
the EU measure did not take into account the vast differences
existing between the nation's shoemakers.
"There are over 20,000 footwear manufacturing firms in China,
and 200 of them are of very good quality," said Wu.
The European Union should not treat all Chinese shoe
manufacturers in a uniform manner, it should appreciate the
differences when introducing tariffs, he said.
"Even the top 200 manufacturers are at different levels, but the
European Union imposed a tariff on all firms at one stroke,"
complained Wu.
Although some firms make cheap and poor quality shoes, a pair of
Aokang shoes is priced at 2,000 yuan (US$253), and that is not low
even when compared with some European-made shoes, he pointed
out.
Wu accused the European Union of imposing its 16.5 percent
anti-dumping tariff after conducting a very selective and
incomplete investigation.
"The European Union should classify Chinese shoes manufacturers
and treat them separately based upon the actual situation," he
suggested.
Chinese shoemakers are likely to appeal against the tariff, said
Wu. "We have hired lawyers in Europe and have already spent several
millions of yuan on the case," he said.
The leather industry associations in Zhejiang, Guangdong, and
Fujian provinces also recently issued a joint statement expressing
their "fierce dissatisfaction and protest" at the tariff
decision.
The statement pointed out that the tariff had already resulted
in Chinese footwear manufacturers suffering a huge loss in exports,
adding that the associations "reserve the right" to take legal
action against the European Union at the World Trade
Organization.
Xie Rongfang, a spokeswoman for the Wenzhou Leather Industry
Association, said that the associations are discussing whether to
use EU courts, though they have yet to agree on when the legal
action will take place or what form it will take.
Wu called on the Chinese and European footwear industries to
take steps to improve their relations, adding that co-operation
between Aokang and Italian footwear company Geox had benefited both
sides.
While Aokang is assisting Geox with the opening of chain stores
in China, the Italian firm is introducing more advanced
technologies to its Chinese counterpart.
Xu Yong, a senior official from the China Leather Industry
Association, said that it is a normal trend to transfer
labour-intensive footwear manufacturing from high to low-cost
regions.
"It will move to areas with even lower costs in the future," he
said, "and China will have to be prepared for that too."
"China has started to control the total amount of shoe output,
while encouraging value-added products and cutting energy
consumption," Xu said, referring to measures in the 11th Five-Year
Plan (2006-10).
But some industry experts say that the European Union's move may
actually benefit Chinese shoe manufacturers in the long term.
"The footwear manufacturing industry in China needs some
stimulants in order to achieve healthy development," said Yang
Chengjie, president of the China Leather and Footwear Industry
Research Institute.
Although the tariff may cause the industry some "short-term
pain, this will encourage enterprises to focus on the quality of
products rather than simply cutting their price."
Many enterprises have started to adjust their business
strategies as a result of the trade dispute.
"The anti-dumping sanctions are both a challenge and opportunity
for the footwear manufacturers in China, " said Su Wenbin, the boss
of Hengtai Hongwei Shoes Co in east China's Fujian Province. His
company has developed its own brand since the beginning of the
year, while also starting to sell its products on the domestic
market.
Zhu Weiwen, chairman of the Guangzhou Leather and Footwear
Industry Chamber said: "China's shoe manufacturers should also
develop their own brand while working as original equipment
manufacturers."
(China Daily October 13, 2006)