The Chinese shoe-making enterprises suffering from EU anti-dumping sanctions have recently ushered in the dawn of success. On October 28th, the World Trade Organization released an expert group report, which found that the EU's practice of imposing anti-dumping duties on Chinese-made leather shoes violated the WTO rules.
Long-term unfair treatment The Chinese shoes with better cost-effectiveness have long become the “eyes of the nail†in some countries in the European Union, especially Italy, Spain and other shoe-making countries. In July 2005, the EU started anti-dumping investigations on Chinese-made leather shoes. On October 5, 2006, the EU ruled that it imposed a 16.5% anti-dumping duty on Chinese-made leather shoes for a period of 2 years. At that time, there were more than 1,000 Chinese companies affected by anti-dumping. By October 2008, the European Union initiated a final review on the expiration of anti-dumping measures. On December 22, 2009, it decided to extend the anti-dumping measures by 15 months.
Chinese companies have repeatedly negotiated with the EU and, in the absence of any results, sued the EU to the WTO in February 2010. In May, the WTO set up an expert group to conduct investigations. According to investigations, the relevant provisions of the EU's "Anti-dumping Basic Regulations" violated international trade rules, and the EU anti-dumping authority used the terms of the investigation even more wrongly.
Shen Danyang, spokesman of the Ministry of Commerce, said that the Chinese side welcomes the panel’s decision. China urges the EU to respect WTO rulings, eliminate legislation and discriminatory practices that are inconsistent with WTO rules, treat Chinese export companies fairly, and maintain normal trade activities between China and the EU.
Mei Xinyu, deputy researcher at the Ministry of Commerce, believes that this signifies that 10 years after China’s accession to the WTO, China began to correct the unreasonable trade rules of other major trading partners through China’s WTO channels. This is very significant. progress.
China’s increase in the power of discourse in Europe is the bitterness and huge loss of Chinese shoe companies for more than four years. According to the statistics from the China Leather Industry Association, the previous anti-dumping duties led to a 20% reduction in the output of China's exports of shoes. As exports to the EU reduced about 40 million pairs of shoes, about 20,000 workers in China are unemployed. Wu Zhenchang, promoter of the EU Anti-dumping Coalition on Leather Shoes Products, and chairman of Guangzhou Genxin Shoes Co., Ltd., said that after closing the case in April this year, Nike and other customers began to increase orders for the EU market.
Regarding the reasons for the victory, Jiang Xianling, deputy head of the International Economics and Trade College of the University of International Business and Economics, told this reporter that it benefits both domestically and internationally. From the domestic point of view, the shoe-making enterprise alliance has played a role, but also shows that China's right to speak in Europe has increased. From an international point of view, it is the Europeans who, after passing through the debt crisis in Europe, began to realize that their past blindly using price controls to squeeze out the development models of other countries is problematic. Through these two years, especially since the 2008 financial crisis, they have seen China assume a responsibility that a big country should bear. They have seen the achievements of China’s market economic reforms, and at the same time they have seen the importance of China helping them through the economic crisis. Therefore, they began to consider the Chinese people's emotions.
In an interview with this reporter, Wang Weiyu, executive secretary of the Center for Energy Economics Research of the University of International Business and Economics, pointed out that the expert group ruled that China’s success is based on the fact that Article 9(5) of the “Anti-dumping Basic Regulations†of the European Union violates WTO anti-dumping investigations. The basic rules for tax rates should be calculated separately for each exporter. In this way, the application of "single tax rate treatment" to "non-market economy" exporters has at least in fact evolved into a way to retaliate against specific countries. Due to China's "non-market economy status," the EU's such practices against China are not the first time, resulting in long-term unfair treatment of Chinese companies.
The external environment is still not optimistic Industry insiders point out that they cannot blindly be optimistic about the temporary victory. At present, China has not achieved the “market economy status†recognized by the EU, and the “Made in China†external trade environment is still full of danger. Wang Zhenyu, deputy director of the China Leather Association and chairman of Aokang Shoes Co., cautioned the footwear industry that the cancellation of anti-dumping duties is a “lightening†for Chinese exporters, but it should not be blindly optimistic and should focus on the future of China’s footwear industry. To be self-reliance, increase product development and brand value, and open up diversified markets.
How to prevent possible future anti-dumping sanctions? Wang Weixi believes that the appeal of Chinese shoe companies has received support from WTO institutions and prompts enterprises to actively use and make good use of WTO rules to safeguard their legitimate rights and interests. Relevant departments of the Chinese government should promote China’s early access to “market economy status†to ease the difficulties encountered by Chinese companies in overseas markets.
Jiang Xianling suggested that macroeconomically, the state should further intensify the reform of the market economy and deepen the reform of the economic system; enterprises must get rid of the price war, and should increase the added value of products, increase the technological content, and take the road of brand strategy. On the micro level, companies must strengthen alliances and industry associations must unite.
Long-term unfair treatment The Chinese shoes with better cost-effectiveness have long become the “eyes of the nail†in some countries in the European Union, especially Italy, Spain and other shoe-making countries. In July 2005, the EU started anti-dumping investigations on Chinese-made leather shoes. On October 5, 2006, the EU ruled that it imposed a 16.5% anti-dumping duty on Chinese-made leather shoes for a period of 2 years. At that time, there were more than 1,000 Chinese companies affected by anti-dumping. By October 2008, the European Union initiated a final review on the expiration of anti-dumping measures. On December 22, 2009, it decided to extend the anti-dumping measures by 15 months.
Chinese companies have repeatedly negotiated with the EU and, in the absence of any results, sued the EU to the WTO in February 2010. In May, the WTO set up an expert group to conduct investigations. According to investigations, the relevant provisions of the EU's "Anti-dumping Basic Regulations" violated international trade rules, and the EU anti-dumping authority used the terms of the investigation even more wrongly.
Shen Danyang, spokesman of the Ministry of Commerce, said that the Chinese side welcomes the panel’s decision. China urges the EU to respect WTO rulings, eliminate legislation and discriminatory practices that are inconsistent with WTO rules, treat Chinese export companies fairly, and maintain normal trade activities between China and the EU.
Mei Xinyu, deputy researcher at the Ministry of Commerce, believes that this signifies that 10 years after China’s accession to the WTO, China began to correct the unreasonable trade rules of other major trading partners through China’s WTO channels. This is very significant. progress.
China’s increase in the power of discourse in Europe is the bitterness and huge loss of Chinese shoe companies for more than four years. According to the statistics from the China Leather Industry Association, the previous anti-dumping duties led to a 20% reduction in the output of China's exports of shoes. As exports to the EU reduced about 40 million pairs of shoes, about 20,000 workers in China are unemployed. Wu Zhenchang, promoter of the EU Anti-dumping Coalition on Leather Shoes Products, and chairman of Guangzhou Genxin Shoes Co., Ltd., said that after closing the case in April this year, Nike and other customers began to increase orders for the EU market.
Regarding the reasons for the victory, Jiang Xianling, deputy head of the International Economics and Trade College of the University of International Business and Economics, told this reporter that it benefits both domestically and internationally. From the domestic point of view, the shoe-making enterprise alliance has played a role, but also shows that China's right to speak in Europe has increased. From an international point of view, it is the Europeans who, after passing through the debt crisis in Europe, began to realize that their past blindly using price controls to squeeze out the development models of other countries is problematic. Through these two years, especially since the 2008 financial crisis, they have seen China assume a responsibility that a big country should bear. They have seen the achievements of China’s market economic reforms, and at the same time they have seen the importance of China helping them through the economic crisis. Therefore, they began to consider the Chinese people's emotions.
In an interview with this reporter, Wang Weiyu, executive secretary of the Center for Energy Economics Research of the University of International Business and Economics, pointed out that the expert group ruled that China’s success is based on the fact that Article 9(5) of the “Anti-dumping Basic Regulations†of the European Union violates WTO anti-dumping investigations. The basic rules for tax rates should be calculated separately for each exporter. In this way, the application of "single tax rate treatment" to "non-market economy" exporters has at least in fact evolved into a way to retaliate against specific countries. Due to China's "non-market economy status," the EU's such practices against China are not the first time, resulting in long-term unfair treatment of Chinese companies.
The external environment is still not optimistic Industry insiders point out that they cannot blindly be optimistic about the temporary victory. At present, China has not achieved the “market economy status†recognized by the EU, and the “Made in China†external trade environment is still full of danger. Wang Zhenyu, deputy director of the China Leather Association and chairman of Aokang Shoes Co., cautioned the footwear industry that the cancellation of anti-dumping duties is a “lightening†for Chinese exporters, but it should not be blindly optimistic and should focus on the future of China’s footwear industry. To be self-reliance, increase product development and brand value, and open up diversified markets.
How to prevent possible future anti-dumping sanctions? Wang Weixi believes that the appeal of Chinese shoe companies has received support from WTO institutions and prompts enterprises to actively use and make good use of WTO rules to safeguard their legitimate rights and interests. Relevant departments of the Chinese government should promote China’s early access to “market economy status†to ease the difficulties encountered by Chinese companies in overseas markets.
Jiang Xianling suggested that macroeconomically, the state should further intensify the reform of the market economy and deepen the reform of the economic system; enterprises must get rid of the price war, and should increase the added value of products, increase the technological content, and take the road of brand strategy. On the micro level, companies must strengthen alliances and industry associations must unite.
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