Chinese Shoe Companies Embrace &Nbsp And Disperse The "Anti Dumping" Cloud.

In response to anti-dumping, our relevant government departments, associations and

In December 2011, after joining the WTO 10th anniversary, reporters interviewed relevant parties in Wenzhou and Beijing, trying to restore a shoe enterprise to deal with anti-dumping proceedings.

This is not just a battle of an enterprise or an industry.

As China's relations with its main trading partners change from complementarity to competition and cooperation, the future economic frictions and trade frictions are bound to increase significantly. The importance of dares and is good at using the dispute settlement mechanism of WTO and the importance of safeguarding the trade rights and interests of state and enterprises are becoming increasingly prominent.

Therefore, similar cases also have the meaning of winning and losing.

"This lawsuit must be fought. If we lose, we win, and win."

"This anti-dumping lawsuit has been taking such a long time, and finally, at the end of March this year, we said goodbye."

In December 8th, lawyer Pu Ling, who was known as "China's first anti dumping lawyer", was relieved when he talked about the past 5 years.

In his view, China's footwear industry is developing rapidly, giving priority to Italy.

In 1995, the EU exported China to Europe on the basis of the soaring export of footwear to China.

However, Chinese shoes did not go unimpeded to the EU market. In the same year, the EU began anti-dumping investigations.

In October 7, 2006, a 16.5% high anti-dumping duty was imposed on China's export of leather shoes to the EU for two years.

More than 1200 Chinese shoe companies were affected, and AOKANG was one of them.

The so-called dumping is the selling price below the cost price.

The European Union has not yet recognized China's market economy status. They chose Brazil as a third party country to produce a pair of leather shoes in Brazil, and the cost of producing them as a pair of shoes for Chinese shoe manufacturers.

Pu Lingchen said that Brazil and China are "BRICs", and there is a huge gap in labor cost, shoemaking technology and scale of shoes, so the cost of producing a pair of leather shoes in Brazil is far more than the cost of shoe making in China.

For enterprises, the remedy at that time could appeal to the European Court of justice, or wait for a request for administrative review after the expiry date.

Pu Lingchen said: "if we take the initiative to fight a lawsuit, we will not only fight for a win or lose, but also pmit a signal from the operation to tell the EU's leather shoes industry and even the European Commission. We are not satisfied with the ruling, and at the same time, there will be some pressure on the EU and the European Commission to cancel the anti-dumping duties."

This is also the opinion of Wang Zhentao when he first met with AOKANG chairman Wang Zhentao in October 2006.

"When it was time for a cup of coffee, Wang Zhentao decided to fight the lawsuit."

At that time, the outside world had many questions about AOKANG's decision.

AOKANG's export products accounted for only 10% of the total sales, and the impact of anti-dumping on it was negligible. Why decided to fight such a campaign? Such a lawsuit dragged on for two years. It is likely that the lawsuit has not been completed, the tax time is over, and it is worth a dozen?

"This lawsuit must be fought and lost, and it will win even more." in December 7th, Wang Zhentao recalled his decision at the same time.

"It was only 5 years since we joined the WTO. We are all like primary school students, who are not familiar with many rules of the WTO.

In the face of EU anti-dumping, it is useless to be dissatisfied or self confessed. We should use WTO rules to give us the right to fight. The struggle process is a kind of learning.

As the vice chairman of the China Leather Association, Wang Zhentao is particularly concerned about the fact that "making shoes is very hard, how many shoe companies will be affected by anti-dumping and how many workers are unemployed?" taking 2006 as an example, the EU anti-dumping affects the employment of 2 million people in the upper and lower reaches of China's footwear industry.

"Although the Ministry of Commerce and the association are also doing some communication and lobbying work, enterprises must come up with a banner to fight for it."

In December 15th, Wei Ya Fei, director of the shoe making office of China Leather Association, told reporters that according to the principle of who should benefit from the lawsuit, the respondent enterprises could pursue a separate tax rate.

The company wants to join hands with more companies to expand its appeal, but most enterprises are unwilling to win because they are "wasting time and effort in lawsuits."

Finally, in December 28, 2006, 5 companies such as AOKANG, Tamar and Jin Lu formally submitted the prosecution materials to the European Union Court in Brussels, Belgium, on the grounds that the cost analysis of the European Commission's export of footwear products to Chinese enterprises was not accurate.

The Chinese lawyer in charge of this case is Pu Ling Chen, who is also the defense lawyer for the first case of anti-dumping after China's lighters won the WTO entry.

"We must continue to express our views, so long as we do not withdraw, we will not fail."

Wei Asia and Africa still remember clearly that when the Ministry of Commerce on the first hearing of EU leather shoes anti-dumping hearings in Wenzhou, a shoe company owner stood up and said, "we do not want to fight a lawsuit. Is there any other way to solve this problem?"

"Lawsuits cost money and people with relevant knowledge. Many Chinese enterprises are unwilling to sue and run around in a case."

Wei Yafei frankly, at the beginning, the association did not know exactly how to do it.

She has been dealing with many shoe manufacturers and chambers of commerce at home and abroad for many years. The deepest feeling is: "don't be afraid of litigation, you must fight!" enterprises can familiarize themselves with the rules of the WTO dispute settlement mechanism and enhance mutual understanding.

"In October 23, 2006, AOKANG decided to go to court.

In November 6th, when I came to register, I began to prepare materials for 12 days in a row, and I was busy until eleven at two every night.

In December 7th, Luo Xianzhong, director of the Department of legal affairs of AOKANG, saw three copies of materials related to the case, which involved financial, quality, employment, environmental protection and other information.

AOKANG did not have a full-time lawyer. After deciding to fight the pnational lawsuit, he immediately recruited a full-time lawyer, Luo Xianzhong, to connect with PU Ling Chen, and later established the Ministry of justice.

According to Pu Ling Chen, after the initiation of the proceedings, the European Commission and the Chinese enterprises conducted two rounds of written defense in turn.

After the conclusion, there will be another round of oral defense. Finally, the European Court will decide on this basis.

In the process of reply you came to me, in December 22, 2009, the European Union announced that the anti-dumping measures should be extended for another 15 months after the "sunset review" (that is, administrative review after the expiration of the product anti-dumping duty).

In the past 3 years, in March 2010, the European Union Court dismissed claims from 5 shoe companies such as AOKANG.

"After the first instance, all the other enterprises were completely frustrated. They felt that it would be pointless to fight the lawsuit from time to time, and they would have to spend more money."

Pu Lingchen said.

In May of that year, AOKANG chose to appeal to the EU high court.

"We absolutely do not have dumping behavior. We must continue to express our views, so long as we do not withdraw, we will not fail."

Wang Zhentao said.

The appeal strategy of AOKANG is neither confrontation nor accusation. It is an attempt to seek a clear answer in the EU Court on the interpretation and clarification of the provisions on market economy status and the provisions and principles of sampling in the EU anti-dumping regulations, which will directly affect the use of the provisions in various industries in China.

In March 16, 2011, good news came to the European Union that the anti-dumping duties on Chinese leather shoes were suspended from March 31st.

In October 28th, the World Trade Organization (WTO) issued an expert group report. "The practice of determining the EU's anti-dumping duties on Chinese leather shoes is in violation of the WTO rules".

"The EU finally gave up its anti-dumping duties, and the Ministry of Commerce's active consultations through diplomatic channels, associations actively organized enterprise respondent, AOKANG and other Chinese shoe enterprises have played a positive role in defense.

More importantly, the EU and China will be able to win mutual cooperation on the shoemaking industry. "

Wei Ya Fei said.

In the legal sense, AOKANG's lawsuit has not yet been closed, and the result is not so important.

"Many European Union companies believe that we are emboldened enough to fight lawsuits, and now more and more companies want to cooperate with us."

Wang Zhentao said.

"Dislocation development, cooperation space is very big".

This anti-dumping is actually a two losers.

The EU is the largest export market for China's footwear products. It is estimated that the EU's anti-dumping measures on leather shoes in China have reduced 70 million pairs of leather shoes from 2005 to 2010, which directly caused about 20 thousand Chinese workers to lose their jobs.

Wei Yafei, director of shoe making office of China Leather Association, has recently discovered that the export of leather shoes in China is still "slow but vigorous".

"A lot of export enterprises are doing OEM processing. After the EU imposed anti-dumping duties, a large number of shoe companies abandoned the EU market and turned to Africa and North America.

Some enterprises have made synthetic leather products in the past few years, not only the profit margins are much smaller, but also the original customers have been lost.

Now that the anti-dumping duty has been abolished, it is more difficult for enterprises to convert leather from synthetic leather to leather. "

Xie Rongfang, executive director of Wenzhou shoe leather industry association, told reporters that Wenzhou, one of the shoemaking bases, only accounted for half of the synthetic leather shoes exported before the EU anti-dumping, and now it accounts for 80%.

For example, Jindi shoe making enterprises accounted for 90% of the leather products, and the volume of exports to the EU was very large. Now it only accounts for 10%.

Over the same period, the average price of leather shoes rose more than 10% in the EU market, and the consequences of trade protectionism finally passed on to consumers.

"5 years of anti-dumping, the EU's leather shoes industry has not recovered."

Wei Ya Fei said.

Actually, there is great room for cooperation between China and Europe.

In recent years, due to the adjustment of EU industrial institutions, the EU footwear market is increasingly dependent on imports.

At the same time, the EU's consumption of footwear and per capita consumption are increasing year by year.

Compared with Europe, China's footwear industry has the advantage of scale.

The size of China's medium-sized enterprises is 1000 to 2000, while the average number of enterprises in Italy is only about 50.

Therefore, China's advantages are obvious for the medium and low grade shoes that need mass production.

"We export $20 a pair of leather shoes to Italy, which can sell US $100.

We still can't produce products that sell US $1000, and we can go wrong with Italy. "

Wei Ya Fei said.

Li Haijun, manager of the Logistics Department of AOKANG International Trade Center, said that AOKANG has been working with Italy's well-known brand GEOX for many years. The main thing is not to make profits, but to improve the manufacturing process.

The competition in the world shoe market is increasingly fierce. If we continue to rely on quantity expansion to increase trade exports, it will lead to more trade friction.

In this regard, lawyer Pu Ling said that such industries as leather shoes were subjected to anti-dumping attacks, and also a warning to other industries: trade disputes and barriers will be the norm for China in the next 10 years. Enterprises should not put their eyes on temporary profits, increase understanding of the international market, make systematic strategic planning and layout of industrial development, and get rid of the low value-added industrial chain as quickly as possible, and make more efforts in marketing and improving the technological content of products.

"The second 10 years of China's accession to the WTO will be the time for China to compete with other countries in" soft power ", which is crucial.

Wang Zhentao said, "enterprises should improve their internal strength, strengthen brand building and international talent team building, understand international trade knowledge, do not touch high-voltage lines, learn international trade rules, and go out smoothly."

"China's shoemaking industry should run international marathon, can't run too fast, run fast, easily fall off, and can't run far."

Wei Ya Fei said.

Extended reading

China has been the most anti-dumping investigation country for 16 years in a row.

According to statistics, from China's accession to the WTO to the end of 2010, China has suffered 692 cases of foreign trade relief investigations, involving a total amount of US $38 billion 980 million.

Among them, 510 anti-dumping cases, 43 countervailing measures, 106 safeguard measures, and 33 special safeguard measures.

China has been the world's largest number of anti-dumping investigations for 16 years in a row. It has become the world's largest number of countervailing countries for 5 years in a row.

It is reported that this is closely related to the labor intensive low-end manufacturing products in the structure of China's export products.

Zhou Xiaoyan, director of the Fair Trade Bureau of the Ministry of Commerce, said that in the future, trade frictions will focus more on high-technology and high value-added products than in the past, more concentrated on low value-added products and labor-intensive products.

Interview notes

Catching up with an opponent can not be based on "short and fast".

"Once the pace of industrial pfer is stepped out, it will not come back."

Wei Ya Fei, director of shoe making office of China Leather Association, said.

The global shift of shoemaking industry is an indisputable fact.

In the 50s and 60s of last century, Italy was the world footwear center.

In 70s, the subcontracting of the footwear industry began in Japan and South Korea. It moved to Taiwan in 80s and came to mainland China at the beginning of 90s.

The old shoe making powers, such as Spain and Italy, are mainly engaged in the design and sale of high value-added products because of their high labor costs in China.

At present, China produces about 10000000000 pairs of shoes each year, accounting for 70% of the world's total shoemaking, making it the largest shoe manufacturing base in the world.

Before October this year, China exported 34 billion 600 million dollars of footwear, and export prices remained low.

In the whole industry chain, high quality raw materials, core technology, R & D design and marketing rely mainly on foreign countries.

Wei Yafei frankly said that the gap between China's footwear industry and Italy has been 10 years, and we can't enter the real high-end market.

"Some bosses go to Europe to shoot in front of people's windows, and they can look almost the same as shoes, but they are far from inside."

In the AOKANG International Trade Center, reporters also learned a lot of differences in detail.

For example, many leather shoes in the domestic market are synthetic leather, and the shoes exported to the European Union are even environmentally-friendly leather. In terms of shoe materials, Italy's metallic shoe shoes are good to import. During the production process, glue, treatment agent and desiccant must be imported, and it should also be anti sensitive.

In addition, every batch of products exported to the EU requires trial wear, tag, labeling and up to two millimeters.

What can not be overlooked is that China's exports to the EU are mainly OEM, with almost no brand owned by the EU market.

The "ten year gap" is accumulated between this little bit.

To catch up with the opponent can not be "short and fast", Chinese shoe enterprises still have to adjust the mentality and rhythm, do a good job of "International Marathon" preparation.