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China opposes EU probe into shoe imports
(Agencies/chinadaily.com.cn)
Updated: 2005-06-25 16:36
China has expressed strong opposition to an EU investigation into its shoe
exports and accused Brussels of manipulating trade figures and causing trade
friction.
"The Chinese side strongly opposes the launching of an anti-dumping
investigation by the European Union which is being done without a practical or
legal basis," said Commerce Ministry spokesman Chong Quan in a statement on the
ministry website.
"China urges the EU to start with the facts, make prudent decisions and avoid
trade frictions."
Silk Alley market in Beijing. China has
expressed strong opposition to an EU investigation into its shoe exports
and accused Brussels of manipulating trade figures and causing trade
friction. [AFP/File] | Beijing had lodged formal
representations with the EU on alleged errors in calculating trade statistics
and urged Brussels to check its data, Chong said.
European trade chief Peter Mandelson announced last week an anti-dumping
probe into imports of Chinese work shoes.
The EU commission has nine months to determine if imports of Chinese-made
work shoes for construction and industrial sites are being sold at below
production costs which is a sign of "dumping."
The commission produced figures showing imports of Chinese-made shoes surged
in the beginning of the year after the end of a global textile quota system on
January 1.
The statistics showed an rise on average of 700 percent in import volumes and
a 28 percent drop in prices for six categories of leather and fabric shoes.
Chong strongly disputed the data.
According to Chinese custom figures, the quantity of exported leather shoes
and slippers to the EU were up 22.8 percent in the first quarter, while the
value for the shoes fell by 59 percent and the price was down by 28 percent, he
said.
The EU and China headed off a trade war earlier this month in Shanghai when
Mandelson and his Chinese counterpart Bo Xilai agreed to limit the growth of 10
Chinese textile products to the EU to between 8.5-12.5 percent until the end of
2007.
However, the agreement does not include shoes.
China Leather Association on Friday warned Chinese shoe-makers to prepare to
respond ahead of an European anti-dumping investigation that is expected to open
officially at the end of the month.
Su Chaoying, secretary-general of the association, called on all Chinese
labour safety shoe-makers to make an active response.
"I fear that some firms may give up the fight because the volume of labour
safety shoes is small," he said.
The association said it was the obligation of labour safety shoe-makers to
respond.
"Otherwise, it will not only impose negative effects on the exports of this
kind but also result in chain reactions in other classes," the association said.
It added it might even bring about trade frictions with other countries if
the firms forced out of the EU turned to other markets.
The association predicted the EU is likely to launch investigations in
several months' time into material and leather shoes from China.
That will be a heavy blow to China's shoe-making industry because they are
two major categories of Chinese exports to the EU.
The association has set up an early-warning system to keep companies informed
about the latest information. It has also promised to offer legal help.
The proposed investigation into whether Chinese labour safety shoe-makers are
dumping will last a maximum of nine months.
Chinese enterprises would be forced to pay punitive duties if the EU wins the
case.
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