Sichuan shoe export is more severe trade barriers

As the phenomenon of global trade protection is heating up, some export companies in Sichuan have lost their price advantage and are facing increasing operating pressure.

Liu Ying, the assistant to Chairman of Chengdu Cardio Shoes, was a bit tired. More than 10 days ago, the EU announced a 15-month extension of anti-dumping duties against Chinese leather by voting. Since the European Union first launched anti-dumping penalties against Chinese leather shoes in 2006, many Sichuan-based shoe exporters, including Cameto, have endured high taxes for more than three years.

China's leather shoes are only one of the export varieties that Chinese products have been hit by overseas trade protection activities in the past 30 days. Only from the 5th to the 6th, Mexico and the United States announced the implementation of special tariffs and anti-dumping sanctions against steel products imported from China. “The barriers to protection of overseas trade facing 'Made in China' are gradually expanding,” said Qiu Ke, a professor of finance at Southwestern University of Finance and Economics.

Trade protection has a lot of "spread" momentum

With trade protectionism, which was resurrected at the same time as the recovery of the global economy in 2009, not only did it not "cool down" in January this year but it also had a tendency of "flooding".

From January 5th to 6th, Mexico and the United States successively announced the imposition of special tariffs and anti-dumping duties on steel products imported from China.

According to some media reports, Mexico imposes a tariff of 50 cents per kilogram on Chinese steel chains. At the same time, the U.S. Department of Commerce announced that it initially imposed an anti-dumping tariff of 43% to 289% on steel wire laminates imported from China worth more than US$300 million.

On December 30, 2009, the United States announced its decision to impose a countervailing duty of 10.36% to 15.78% on China's oil pipe, and created the largest case of U.S. trade sanctions against China. On December 22, the EU announced that it will extend the anti-dumping duty on Chinese leather for 15 months by voting.

“The phenomenon of trade protection is heating up and Chinese export companies are under tremendous pressure,” said Qiu Ke, a professor of finance at Southwestern University of Finance and Economics.

Sichuan Pangang Group Chengdu Steel Vanadium Co., Ltd. Export Section told reporters that due to the US anti-dumping and anti-subsidy case, the company's export business for North American oil well pipes has been completely shelved. “Trade protectionism makes us feel tremendous pressure.”

Some shoe companies in Chengdu stated that the EU is the third largest export market for Sichuan footwear, and there are more than 10 shoe companies in the province that have business dealings with EU dealers. The anti-dumping duties will increase the purchasing costs of local distributors by 10%, and thus Chuan Shoes will lose its price advantage.

Chinese companies are forced to fight

In the face of overseas trade protection barriers, Chinese companies are forced to fight.

Correspondent climbers yesterday said the company has responded to the anti-dumping sanctions. "We are now in a lawsuit with the United States. The specific details are not disclosed."

Like climbing steel, Zhejiang shoe companies are resolute in their decision to extend anti-dumping sanctions in the EU. According to reports, the Zhejiang shoe company stated that it will continue to crack down on the appeals of the courts of the European Union. It will also continue the United Nations shoe companies and support the Ministry of Commerce and the Chinese Leather Association in appealing the WTO dispute settlement mechanism. In addition, the China Leather Association also expressed its support for the Ministry of Commerce to prepare for an appeal to the WTO and hired a Belgian lawyer.

However, Chengdu's shoe companies did not join in this massive battle against anti-dumping sanctions.
Some shoe companies would rather give up the market
A shoe owner in Chengdu, who declined to be named, told reporters that due to the previous response to the EU's anti-dumping did not succeed. Chengdu shoe companies feel embarrassed about the possibility of success.

As the EU anti-dumping duty on Chinese leather shoes is 16.5%, plus the EU's 8% tariff, in the next 15 months, Chinese leather shoes will continue to carry a heavy tax of up to 24.5%. Liu Ying, the assistant of Chairman of the Cardio, said that they can only share the anti-dumping tax of 16.5% with the distributors. "On the export to the European Union, it will lose 20% to 30% of its profits."

In the face of more and more trade barriers, "abandoning" and "shelving" have become words for some export companies.

In the interview, some Sichuan shoemakers complained that they would rather give up if the tax increases the market sales. Some steel companies also stated that they will increase their sales efforts in domestic and Southeast Asia and North Africa markets.