PPE

Abandoning the EU and shifting the investment position of domestic shoe enterprises

after five years of hard defense, Chinese shoe enterprises have finally “broken” the EU’s anti-dumping “stick”

the European Commission announced recently that it would formally stop imposing an anti-dumping duty of up to 16.5% on Chinese leather shoes from March 31, 2011< According to an official data, from 2006 to the end of 2010, due to the implementation of EU anti-dumping duties, China's sales of leather shoes exported to Europe fell by 20%, resulting in an indirect economic loss of about US $10 billion, which directly led to the unemployment of 20000 people in China the reporter learned in the investigation that although the EU has cancelled the anti-dumping duty, the enthusiasm of some shoe enterprises for the EU market has sharply decreased. 1n January and February this year, Ningbo Port exported 3.672 million pairs of leather shoes to the European Union, a year-on-year decrease of 8.37% the EU market has become less attractive the EU has imposed anti-dumping sanctions on Chinese shoe enterprises for the past five years, which makes Chinese shoe enterprises feel a lot of injustice and helplessness according to the head of a well-known shoe enterprise in Zhejiang, the European Trade Commission believes that Chinese leather shoes are dumped into the EU at a price lower than the domestic production cost” This is just an excuse for the EU to impose anti-dumping duties on Chinese shoe enterprises. They do not recognize our market economy status. The EU calculates our production costs by referring to the production costs of a third country. “ the person in charge of a well-known shoe enterprise in Zhejiang confessed: “due to the low labor cost in China, all enterprises still have certain profits.” However, it is no doubt an abnormal way to consider China’s shoe enterprises based on the production cost of a third country a person in charge of a medium-sized shoe enterprise in Wenzhou told the reporter that since 2006, the EU market has been gradually abandoned by them, “the anti-dumping duty is so high, and there is no profit, so why should we stare at it?” the person in charge calculated an account for the reporter. Now the average unit price of a pair of shoes sold in the domestic market is US $25. When the shoes are exported to the European Union, they have to pay an anti-dumping duty of up to US $4. “After deducting all the costs of materials, water, electricity, labor wages, site and so on, and handing over the tax of US $4, there will be little profit left.” when the reporter asked whether to return to the EU market in the future, the person in charge said: “1 will consider it, but 1 don’t have much hope. 1’d better focus on domestic sales.”< Wang Zhentao, chairman of Zhejiang Aokang Group, said that in 2006, Aokang exported about 1 million pairs of leather shoes to the European Union, but with the imposition of anti-dumping duties, Aokang basically gave up exporting to the European Union in the past five years. At present, the products exported to the European Union only account for about 10% to 15% of the total number of products “before the anti-dumping duty, Huajian’s exports to the EU accounted for 20% of enterprises’ exports. Since then, it has been declining year by year. At present, the export to the EU accounts for less than 10%. As a result of the anti-dumping duty, we have lost more than 2 million US dollars of EU orders every year. ” Dongguan Huajian group head told reporters the person in charge also said that the imposition of anti-dumping duties has greatly increased the export costs of enterprises” This will make many enterprises have to abandon the EU market or reduce the proportion. “ although the EU decided to cancel the anti-dumping duty on Chinese leather shoes, the crisis has not been lifted Wei Yafei, director of shoe making office of China Leather Association, said that the EU still has some follow-up problems and preparations in many aspects, and has now started to investigate the relevant situation in China after the EU’s anti-dumping duty is suspended, there may be a large number of shoes orders pouring into the Chinese market at that time. For this reason, Ningbo Customs reminds relevant enterprises at ports that they must control the quantity of shoes exported to EU, and try to avoid centralized export in the second quarter, so as not to provide EU shoe-making enterprises with the excuse to restart the anti-dumping procedure as trade barriers may be built again at any time, the EU market is less attractive than Brazil and other countries and regions strategic turn: building factories, opening stores and transferring positions the anti-dumping duties imposed by the EU do not mean disaster to China’s shoe industry. Some domestic shoe manufacturers begin to transfer their production bases to third countries to avoid the risk of anti-dumping from the EU “after 2006, we have gradually opened up sales in some countries in South Africa and North America and established a relatively stable cooperative relationship. Now if we go back to the EU market, 1 don’t think we will accept it.” A person in charge of a private enterprise in Dongguan said he gave a metaphor to the reporter, which was like everyone rushed to the bridge before, and then the bridge was stuck, “but we still have to go there in the end, so we have to give up the bridge and take other ways.” in ussurisk city in Russia, Wenzhou Kangnai Group and Heilongjiang Jixin industry and trade group have jointly built an industrial park with an area o2.28 million square meters and an annual output value of 24 billion yuan “not only shoemaking, but also wood processing are also in our planning. Besides building our own factory there, we are also ready to attract other enterprises in Wenzhou to go out. After the scale of the park is formed, some of the products that often encounter trade barriers, such as clothing, leather shoes, lighters, etc., will be transferred out, leading Wenzhou enterprises to “collectively break through” and cross all kinds of trade barriers. ” Said Zheng Laili, deputy general manager of Kangnai Group Co., Ltd some shoe enterprises also from Zhejiang have begun to set up production lines in Russia, Nigeria and other countries. Wenzhou shoe leather industry association is also taking the lead in establishing an “overseas production 1ndustrial Park” for Chinese shoe enterprises in the European Union to circumvent anti-dumping restrictions at the same time, Kangnai began to try to bypass the middlemen and directly enter the local market of EU “as early as a few years ago, Cornell began to open exclusive stores and counters in Europe and the United States, and now there are more than 100 stores.” According to Zheng Laili, Kangnai plans to increase the number of counters in overseas stores and shopping malls to 1000 in five years avoid middlemen and face consumers directly, so that the profit margin of Kangnai can be increased by at least 10% Aokang has adopted the same strategy. Wang Hailong, manager of the Publicity Department of Zhejiang Aokang Group, told reporters that after the plan to open exclusive stores in Europe was suspended a few years ago, Aokang began to plan to acquire the local sales network some EU importers suggest that Chinese shoe enterprises re export to the EU through a third country” Although the price is 1 to 2 US dollars higher than the original price, which will increase some costs, EU importers can basically accept it. ” Wang Hailong said according to Wang Zhentao, Aokang is stepping up its efforts to develop the 1ndian market. “We will build factories in 1ndia, build our production lines there, and build our own sales network and channels.”

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