Chinese shoemakers announced on Friday that they would continue to file objections to European Union sanctions in order to stave off a possible long-term anti-dumping measure.

"Despite the huge cost of the 'no-injury defence' with the European Union, the Chinese shoe makers will go all out to protect their interests," said Wu Zhenchang, president of the Guangdong Chuangxin Shoe Manufacturing Company

Wu has formed an alliance of Chinese shoemakers who have joined to defend themselves against the European Union's anti-dumping accusations.

The European Commission Thursday announced that it would impose duties of 19.4 percent on shoes from China and 16.8 percent from Vietnam.

The anti-dumping duties will be phased in for six months starting from April 7.

High-tech sports shoes and kids' leather footwear will be exempted, according to the statement from the European Commission on Thursday.

Industry observers believe that the exemption was aimed at protecting the interests of the large EU retailers and shoemakers who had shifted production bases to Asia.

"What are 'high-tech' sport shoes? The criteria are prescribed by the EU, aren't they?" complained Zhu Feng, head of the association of shoes and leather industry in Wenzhou City, home to numerous shoemakers in east China's Zhejiang Province.

Currently, China is the largest footwear manufacturer and exporter in the world.

Chinese shoemakers said that the anti-dumping duties would not only oblige them to slash production and fire employees, but would also affect European consumers and the shoe manufacturing industry as a whole.

Anti-dumping measures will substantially hamper cooperation between Chinese and European enterprises, which was being consolidated on the basis of market performance, Chinese shoemakers said.

According to Wu Chunyue, general manager of the import and export branch of the Zhejiang-based Aokang Group, the company has cooperated with the GEOX from Italy for three years. It produces one million pairs of shoes annually for the Italian partner. And its annual production capacity will reach 2-3 million pairs in a few years to come. It will also establish 300 franchised footwear stores for the Italian firm.

"Nonetheless, the anti-dumping duties will probably deprive the European enterprises of opportunities to cooperate with their Chinese partners," Wu said.

Moreover, it is possible for the duty readjustment to affect European consumers more than is expected.

Before the approval of anti-dumping duties, some EU officials had said imported China-made shoes were bought at 8.5 euros on average and sold at a retail price within the range of 30 and 100 euros. After the duty adjustment, they said European footwear sellers would continue to earn enough profits and the end users would not need to spend much more for their purchases.

However, Chinese enterprises said it won't be the case. On one hand, more than half of the imported shoes for large European retailers are sourced from China and Vietnam, and it takes six to eight months for them to procure footwear. If imports from Asian nations were slashed, it is hard for the importer and retailer to turn to other sources.

Meanwhile, the anti-dumping duties will help increase the cost per pair of shoes by 4-6 euros. European consumers will eventually bear the cost.

European equipment suppliers for Chinese shoemakers will not be able to stand off in the duty adjustment.

According to Chen Zemei, president of the Wenzhou-based Saina Group, who has experience in anti-dumping lawsuits, her company needs to import 5 million euros worth of machines and raw materials every year.

"Our equipment and raw materials suppliers in the EU are anxious. They are afraid of losing the Chinese market that they have managed to enter with great difficulty," Chen said.

Mei Xinyu, a researcher at the research institute of international trade and economic cooperation under the Ministry of Commerce, said, "In line with WTO protocols, the EU promised to scrap import quotas for China-made shoes as of 2005."

"There is no solid evidence to attribute the decline of the European shoe manufacturing industry to the 'competitive distortions' by their Chinese peers," Mei added.

According to Wu Zhenchang, the sponsor of the alliance of Chinese shoemakers against EU anti-dumping lawsuits, Chinese enterprises should prove the decline of the European shoe industry is not resulting from imports of footwear made in China.

"In this regard, the alliance has won support from some retailers and raw material suppliers in the EU," Wu said.

Source: Xinhua