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AOKANG Needs To Understand International Rules In Order To Win Anti-Dumping Cases In Foreign Countries

2012/11/26 20:03:00 18

China's Footwear IndustryAOKANGAnti-Dumping MeasuresInternational Marketing Strategy

AOKANG and other shoe enterprises actively respond to EU anti-dumping


In 2005, following the lifting of the quota restrictions imposed on China's leather shoes for 14 years, the European Commission, in view of China's accession to the WTO organization, has re adjusted its strategy to initiate anti-dumping investigations on Chinese leather shoes.


In October 7, 2006, the European Union

China footwear industry

The implementation of the two-year anti-dumping measures has imposed a 16.5% high anti-dumping duty and more than 1200 Chinese enterprises involved.


In the face of the European Union's anti-dumping stick, in October 23rd of the same year, AOKANG joined 4 shoe companies, including Tamar and golden shoe, to file a lawsuit against the European Court of first instance.


However, the rise of Chinese shoe companies and the plea and defense did not stop the EU's anti-dumping stick falling.

The anti-dumping measure expired in October 2008, but the European Commission decided to launch a "full review" of the anti-dumping case against Chinese leather shoes.

In December 2009, the EU decided to reconsider the anti-dumping measures against Chinese leather shoes for another 15 months without sufficient justification, that is, to March 31, 2011.


In March 2010,

European Court of first instance

Dismissed the lawsuit request of 5 Chinese shoe companies such as AOKANG, and announced that Chinese shoe enterprises failed in the first instance.

In April 8, 2010, the Chinese Ministry of Commerce appealed to the WTO, requesting WTO to set up an expert group to coordinate the settlement of the unfair international trade dispute launched by the European Union.


Under heavy pressure, 4 shoe companies, such as TIMA and golden shoe, withdrew from litigation.


In the face of this grim situation, AOKANG resolutely decided to "fight down" and continue appealing to the high court of the European Union.


In March 31, 2011, the anti-dumping measures expired for 15 months expired. The European Union announced that it had abolished 16.5% of the high anti-dumping duty on Chinese leather shoes from April 1st of that year.

Thus, the unreasonable trade protection measures that have been maintained for nearly 5 years have finally come to an end.


However, this is only a unilateral lawsuit by the European Union to terminate the sanctions, but it has not yet concluded the legal case against dumping.

Thanks to AOKANG's active efforts,

High Court of the European Union

Finally, in November 15, 2012, the verdict was officially issued, and the final ruling was won by AOKANG.


Chinese enterprises should increase the weight of competition


According to legal experts, the Chinese enterprise's defense against the EU's anti dumping "foreign lawsuit" has gained the direct benefits: first, whoever loses the lawsuit will bear all the litigation costs, which is expected to be as high as 5 million yuan.

Two, the EU should refund the anti-dumping duty that has been collected for 3 years to Chinese enterprises and importers.

More importantly, it provides a reference for Chinese enterprises to sue anti-dumping cases.


Wang Zhentao, chairman of AOKANG company, believes that the most effective way to get rid of the anti-dumping stick is to continuously improve their strength.


The first is to increase investment in science and technology and improve the technological content of products.

From the perspective of product structure, the low technology content of some products in China's exports is easy to cause the impression of dumping at low prices in the importing countries.

It is an urgent problem for Chinese enterprises to intensify technology and R & D and compete with their own intellectual property rights rather than price.


Second is to develop effective international marketing strategy.

Brand added value

And other non price competition measures are important weights in the current international market competition.

The "going out" of Chinese enterprises needs strong brands to support them.

Wang Zhentao said, "made in China" is basically a product export, but not realizing quality export and brand export, which is the fundamental reason for repeated anti-dumping.


Again, it is to go out of the misunderstanding of killing each other and disorderly competition.

Miu Renzan, general manager of the International Trade Department of Kangnai group, said frankly that anti-dumping is the cause of EU trade protectionism, and Chinese enterprises are also inadequate.

For example, some Chinese enterprises are killing each other. A pair of shoes has been quoted for 5 dollars, and some people have quoted 4.8 dollars, which eventually reduced to 4.5 US dollars or even lower.


Chinese enterprises urgently need to understand international rules


When the EU began to impose a high anti-dumping duty on Chinese shoe enterprises, one thousand private enterprises began to accept the EU anti-dumping investigation.

But later, many enterprises have withdrawn, and the number of enterprises to cope with them has dropped from one thousand to thirty, and then has been further reduced. Only 5 companies such as AOKANG have really resisted litigation.

However, after the first trial was defeated, only AOKANG left alone.

This phenomenon reflects the fear, evasion and omission mentality of Chinese enterprises in the face of unfair or unfair trade rulings, which is a soft spot for Chinese enterprises to participate in international market competition.


Acting as legal adviser to AOKANG.

Beijing Zhong Lun law firm

In the analysis of many cases of international trade disputes, there is a clear difference between Chinese enterprises and Western Enterprises: the Western business philosophy is that the law is the first to understand, to understand the laws and regulations of international trade, to develop business models and conduct business and competition within the framework of the law; and Chinese enterprises often take the business as the first priority, and commercial competition as the first step. First, formulate business strategies and business models, and carry out business and business competition.


He believes that if Chinese enterprises do not learn the rules of international trade game well, do not understand the local laws and regulations, and do not study the potential traps of the other side, they will not be able to suffer a great deal.

"Chinese enterprises must learn from western enterprises, pfer the competition procedures, and arm themselves with the law so as to prevent them from happening."

Pu Ling dust emphasized.

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