China is responding to the import licensing and inspection
mechanism implemented by the EU at the start of this month on
Chinese footwear exports.
Thousands of Chinese shoemakers will be coordinated by a special
team under the China Leather Association dealing with trade
conflicts. It will collect information over the year that the
mechanism is in place.
"We will keep China's shoe making enterprises up to date with
latest information from the EU and consult with the government on
countermeasures," said Wei Yafei, an official from the
association.
The Ministry of
Commerce has also put shoe exports under close supervision.
Wei said that both the government and the industry association
might consider adopting some restrictive measures similar to those
imposed on textile exports.
China now levies export duties on textiles, and major textile
makers have established six panels to strengthen self-discipline in
the industry and oversee exports.
Since February 1, the EU has required importers to apply for a
license from any one of its member countries before Chinese-made
shoes can enter their market.
The new mechanism, which covers all footwear subject to quotas
before 2005, is scheduled to last until January 31 next year.
So far, the German and UK governments have submitted information
about how to apply for permits, and similar documentation is
expected soon from other EU states.
Although no detailed restrictions were announced, experts
predicted this procedure would extend times of declaration and
detention, thus increasing costs for Chinese exporters.
"Since it is a slack season for shoe exports, the effects will
not be obvious in the first one or two months," said Wei.
This regulation met calls from some EU countries, including
Italy, Spain, Portugal and Poland, to launch an anti-dumping
investigation against Chinese footwear.
According to the China Chamber of Commerce for the Import/Export
of Light Industrial Products, Arts and Crafts, the impact of the
new mechanism should be minimal in the short term, since applying
for import licenses would be easier than dealing with quotas.
However, domestic shoemakers should remain cautious, warned Wang
Jin, head of the chamber's shoe branch.
With the inspection system, the EU, if finding a big increase of
Chinese shoes into its market, would take other measures like
special safeguards and anti-dumping measures to protect its own
businesses.
"That would be a heavy blow to the shoemaking industry," Wang
pointed out.
China currently has more than 7,000 shoemaking enterprises,
producing an annual average of over 6 billion pairs of shoes,
accounting for 53 percent of the global total. However, a huge
amount of those shoes are OEM (original equipment manufacturing)
products for international brands.
Due to the lack of their own competitive products, Chinese
shoemakers often resort to price cuts, which often result in
decreased profits and increased risks of anti-dumping measures.
The EU has long been concerned about the threat posed to
European producers from less expensive Chinese imports.
The conflict intensified last autumn, after it was announced
that the lifting of all shoe quotas would take place at the
beginning of this year.
(China Daily February 24, 2005)