Manufacturers oppose EU anti-dumping duties
(Xinhua)
Updated: 2006-02-22 17:40

Chinese shoe manufacturers are poised to join forces to protest against the anti-dumping duties imposed by the European Commission.

Eight major shoe manufacturing enterprises in South China's Guangdong Province have set up a union to oppose the action, calling for support from shoemakers across the country.

So far, more than 180 related enterprises have joined the union's drive to stave off anti-dumping duties on Chinese shoe exports to the EU.

"We can not believe that the European commission has increased export duties from 4 percent in April to 20 percent in the Aug.-Sept. period," said Wu Zhenchang, president of Chuangxin ShoeGroup, on Tuesday.

Wu, also founder of the shoe makers' union, added that the Chinese shoemakers will carry out investigations to provide information on local shoe manufacturing. "The data will be convincing evidence in negotiations between China and Europe."

Apart from shoe firms in Guangdong, dozens of shoe makers in the eastern Chinese city of Wenzhou, a major industrial base for shoe manufacturing, are trying to seek more support from European retailers.

Although the European Commission, in charge of trade policies, confirmed it had evidence of dumping by 13 Chinese shoe exporters in a spot check, internal rifts exist within the EU over concerns of igniting new trade tensions with China.

In fact, the 20 percent duties on Chinese shoe exporters is lower than the required figure by some major shoe manufacturing countries in Europe. For example, Italy is asking for stricter duties on shoe exporters to protect its shoemakers.

This indicates that the EU is determined to further protect consumers' benefits and different countries in the EU have different stances on the issue, Wu said.

Sources show that the EU's high export duties over Chinese shoemakers may not fall on enterprises manufacturing gym shoes.

Statistics show that about two-thirds of the world's gym shoes come from Guangdong Province, the largest manufacturing base for renowned brands such as Nike and Addidas.

"If the news is true, the EU anti-dumping action will not have a strong effect on gym shoe-related enterprises," officials of Addidas-Wanbang Shoe Ltd. (Guangdong) said.

Other major gym shoe giants in the Zhujiang Delta area, including the Hong Kong-based Yue Yuen Industrial (holdings) Ltd.,reported increased orders from Europe recently and shares of the firms saw no negative effect on the stock market.

Amid concerns over the EU action, shoe makers in Guangdong increased their EU export volume to 30.89 million pairs in Jan. with a total value of 110 million US dollars, up 54 percent and 65percent respectively over the same period in 2005.