AOKANG Talks About EU Counterargument: Only Discontent And Protest Are Useless.

China's first case of shoe enterprises' defense against EU anti-dumping case

In November 18, 2012,

The decision reached in November 15, 2012 by the high court of the European Union has ruled that the interpretation of certain provisions of the EU anti-dumping regulations involving AOKANG's EU leather shoe measures is correct and overturned the first instance ruling made by the European Union's ordinary court.

This marks the 6 time that AOKANG, a Chinese shoe company, has finally won the plea of EU anti-dumping.

"Hide" but "fight"

"Anti dumping is inevitable. Only discontent and protest are useless. We need to take the initiative to deal with it positively." Wang Zhentao, chairman of AOKANG, is conscious of the fact that in the face of trade barriers, only joint will have a way out. Only by cooperation can we develop. In the face of increasing anti-dumping pressure, shoemaking enterprises should set up organizations that deal with international trade barriers together, share information and share funds, and jointly express their legitimate demands.

As the largest private shoe manufacturer in the country, AOKANG is unwilling to acquieges the EU's unfair trade initiatives.

Wang Zhentao strongly advocated using legal means to safeguard the legitimate rights and interests of China's footwear industry in the international market, and actively sought and strived for the market position and interests of the Chinese footwear industry under the WTO rules.

"Economic reference daily" reporter learned that since the last century's reform and opening up in China, one of the "made in China" bulk products began to sell to EU countries gradually, and the annual sales volume increased gradually.

Some European Union countries regard it as a "scourge".

By the early 90s of last century, some European countries had cooperated with each other to launch restrictions on the protection of their footwear industry and the maintenance of prices.

The "barrier action" into Europe has imposed "import quotas" on Chinese leather shoes.

The decision lasted 14 years until China joined the WTO.

After China's accession to the WTO, with the huge increase in China's foreign trade volume, various trade frictions against Chinese products such as anti-dumping, countervailing and technical barriers are also accompanied. And China's accession to WTO has gone through the final pition period. In the past, the direct protection of enterprises by the government will also gradually be confined to the rules of WTO.

In 2005, the EU's adjustment strategy launched an anti-dumping investigation on Chinese leather shoes.

In October 2006, the EU formally imposed 16.5% anti-dumping duty on leather shoes in China and Vietnam.

16.5% of the anti-dumping duty is for the vast majority of small profits.

Undoubtedly, the other was pinching the most vital gate.

According to one data, from 2006 to the end of 2010, the sales of leather shoes exported to Europe dropped by 20%, due to the EU's anti-dumping duties, which directly led to 20000 unemployed people.

Failed to plead for defence

When the European Union launched an anti-dumping investigation on Chinese leather shoes, more than 1000 companies actively responded to the EU investigation.

After the first round of investigation, most of the enterprises were pessimistic to quit, and then only more than 30 enterprises were left behind.

In December 2006, AOKANG joined 4 other shoe companies to sue the EU Council for levying anti-dumping duties on leather shoes originating in China for a period of 2 years and 16.5%. In March 2010, the European Union rejected the claim and AOKANG and other Chinese shoe enterprises failed in the first instance.

It was launched by the European Union.

At the time of the investigation, in May 18, 2006, the EU held the EU anti-dumping "six party talks" in Bishan, Chongqing, China.

Zhou Shijian, chairman of the WTO Research Association of China, Wang Zhentao, chairman and President of AOKANG group, an official of the Ministry of Commerce and the Fair Trade Bureau, an official of the Spanish Embassy in China, and a head of the Asian region of a famous shoe making company in Sweden, have expressed their views on EU anti-dumping.

Wang Zhentao, a representative of 100 shoe manufacturers, issued the first China protest against the EU footwear antidumping manifesto, the Chongqing declaration.

In May 20, 2006, AOKANG sent plenipotentiary representatives to participate in the "protest group" organized by the Ministry of Commerce and supported by the chamber of Commerce of China Light Industry Crafts Import and export association to the EU to attend the "anti-dumping hearing on shoes products to China" held in Brussels in May 22nd.

At the hearing, AOKANG pledges to protest against unfair EU anti-dumping decisions against Chinese shoes.

In June 15, 2006, chairman Wang Zhentao of AOKANG, at the invitation of Calvo, chairman of the European footwear Federation, attended the Spanish footwear industry forum held in Spain's "WTO" rule, and represented the sole representative of Chinese footwear enterprises.

In the competition between the two powers of China and Europe, some Chinese footwear industry saw the general trend was bad and began to retreat.

At the beginning, when the European Union launched anti-dumping investigation on Chinese leather shoes, more than 1000 enterprises actively responded to the EU investigation.

After the first round of investigation, most of the enterprises were pessimistic to quit, and then only more than 30 enterprises were left behind.

By mid October 2006, it was the last choice for Chinese Enterprises: whether to initiate proceedings against the European Court of first instance.

In October 23rd, AOKANG decided to hire China's "anti dumping first counsel", partner of Beijing Zhong Lun law firm, and pan Lin, the head of international trade and WTO law business unit, and filed a lawsuit against the first instance court of the European Union, suing the EU Council for issuing 16.5% of the anti-dumping duties which do not comply with the relevant laws of the European Union.

Subsequently, three enterprises in Wenzhou, Guangdong and Fujian, including Tamar, Nanhai Jin Lu, Wan bang and Hong Kong dollar, followed up and announced joint appeals.

At the end of December, AOKANG and other 5

Jointly submitted the indictment, sued the EU Council to levy anti-dumping duties on leather shoes originating in China for a period of 2 years and 16.5%.

Meanwhile, at the end of 2006, the EU executive committee announced the green paper on trade remedy tools, because Chinese shoe companies actively defended EU anti-dumping, and invited China to comment on the green paper.

After that, the Ministry of Commerce of China organized a symposium on the green paper review of EU trade remedy instruments and a seminar on trade remedy tools between China and European trade officials, and actively promoted dialogue between China and EU on EU trade remedy measures.

On the morning of January 8, 2007, four Chinese shoe companies, such as AOKANG and Wenzhou Tamar, held a briefing on footwear anti-dumping proceedings in Beijing.

On behalf of the appellate enterprises, Wang Zhentao published the "Beijing Joint Declaration on trade barriers of Chinese shoe enterprises", and called for more domestic shoe manufacturers to take actions to cope with international trade barriers.

However, the rise of China's shoe companies has failed to prevent EU anti-dumping duties.

The anti-dumping measure should have expired in October 2008, but the European Union, despite the opposition of most Member States, decided to launch a "full review" of the anti-dumping case against Chinese leather shoes.

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

Misfortunes never come alone.

In the field of legal proceedings, in March 2010,

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

Ambition must be fought for second instance.

Wang Zhentao was uneasy and asked the lawyer Pu Ling Chen: "how many chances are there for second trial?"

If we fight the second instance again, there will be less litigation costs and less than 1 million yuan.

Wang Zhentao asked, "where are we going to win again?" Pu Ling said: "the EU's anti dumping basis is insufficient. Their roots are trade protectionism and discrimination against Chinese enterprises. I believe that the enforcement of the law by the EU high court will be fair."

Wang Zhentao felt relieved at this point.

He said decisively that I had the bottom and continued to fight. The first instance failed to defeat the confidence of 4 appeals shoe enterprises to continue their judicial proceedings, and AOKANG, who had become a "lonely man", fought alone and decided to appeal to the high court of the European Union for "second trial".

In April 8, 2010, China's 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.

However, 4 shoe companies such as Wenzhou Tamar and Guangdong Nanhai Golden Shoe were defeated by the first instance and lost confidence. Pessimistic thought that the second instance failed to win the lawsuit and announced that they had withdrawn from the judicial proceedings.

Wang Zhentao and the corporate decision-makers calculated that the lawsuit would win even if they lost the battle.

If we lose, we have "four wins": first, we have won the ambition of Chinese enterprises, showing that we are not afraid of international lawsuits and are not afraid of unfair anti-dumping measures by "international predators".

The two is to win dignity. This dignity is the status of Chinese enterprises in the world.

Three, we have won the voice of China. Today China has become stronger on the international stage. We must stand up straight and send out the voice of China's justice and justice.

Four, we have won a good international image and show that we will not be a turtle in the face of unfair international trade frictions. This will give the EU a new understanding and give an example to Chinese enterprises.

If we win, we will gain more voice in international trade in the future.

Words are divided into two parts.

March 31, 2011 is the expiration date of the EU's extension of anti-dumping measures, and the EU has played the last bullet.

As a result, the European Union announced the lifting of a 16.5% anti-dumping duty on Chinese leather shoes from April 1st of that year.

This unreasonable trade protection measure, which has lasted for nearly 5 years, has finally come to an end.

However, the EU has unilaterally terminated sanctions on administrative measures, but

Problem.

AOKANG continued several rounds of pleading in the EU high court to win the final appeal.

After the active efforts of AOKANG and two lawyers' groups at home and abroad, the European Union High Court finally issued a verdict in November 15, 2012, and the final award was AOKANG.

Revelation of victory

Business models should be formulated within the framework of the law.

According to legal experts, the Chinese enterprise's defense against EU anti dumping "foreign lawsuit" won the lawsuit. The direct benefits it obtained were: "whoever loses the lawsuit, who will bear it", the European Union 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.

Its positive significance not only made Chinese enterprises "return" confidence and "returned" their dignity, but also clarified the legal provisions of some anti-dumping cases, thus providing a legal basis for the establishment and predictability of Chinese enterprises in future litigation against anti-dumping cases.

In the 6 years of defense, not only did the world see the confidence and responsibility of China's private enterprises, but also more importantly, it provided valuable experience and lessons for the international private sector to cope with international trade frictions and economic disputes.

Experts suggest that if Chinese enterprises want to go out successfully, they must first use the "law brain", first understand and get through the laws, regulations and rules of international trade, and then formulate business models within the framework of law, and carry out business operation and competition.

Revelation 1: practice ourselves and increase competition weights.

Wang Zhentao, vice chairman of the China Leather Association and chairman of AOKANG company, said that although the objective factors such as the rise of regional protectionism and bias brought about by system differences have certain resistance to Chinese enterprises going to the world, we must admit that China's export commodities still lag behind developed countries in terms of quality and technology content.

Therefore, the most effective way to get rid of anti-dumping sticks is to continuously improve their own strength.

In the process of defense, anti-dumping and litigation, AOKANG has made great efforts in practicing internal strength, applying new technologies, innovating enterprise management, improving production technology, improving product technology association, improving brand value and promoting domestic market strategy. The price of leather shoes exported to AOKANG is over 20 US dollars, up to 50 US dollars.

In addition, effective measures must be worked out.

Most of the export enterprises in China lack in-depth research and overall grasp of the international market. They do not make overall marketing and brand strategy in the international market. They rely solely on the low price strategy to enter the international market.

Brand value added and other non price competition means are important weights in the current international market competition.

Chinese enterprises should go out of the low zone of mutual bargain and disorderly competition.

Miao Ren Jen Tan, general manager of Kangnai group international trade department, said that for many years, at the Canton Fair and some international trade fairs, some Chinese enterprises had been competing with each other for low-end competition and disorderly competition. A pair of shoes had been quoted for $5, and some people had been paying $4.8, which eventually reduced to $4.5, which was even lower.

Revelation two: dare to play and overcome the weakness of confidence.

When the EU began to impose a high anti-dumping duty on Chinese shoe enterprises, a large number of enterprises involved in China's shoe enterprises were in low spirits and confidence was "bankrupt" in the past 1200 years.

With the encouragement of the Ministry of Commerce and China Leather Association, at the beginning, 1000 private enterprises were willing to deal with and accept the EU anti-dumping investigation.

But later, many enterprises saw that the momentum was not good. They thought that the future was slim, the thought was pessimistic, they quit, willing to be beaten passively, and the enterprises that dare to cope were reduced from 1000 to 30, and then further reduced. Only 5 enterprises such as AOKANG really rebel against the lawsuit.

After the defeat of the first instance, the other 4 companies hit hard, leaving the group alone, leaving only AOKANG fighting alone.

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

Now that AOKANG insists on litigation and wins, it shows directly to Chinese Enterprises: evasion and withdrawal will only cut off communication and communication with the outside world, and defeat ourselves, and create a false sense of success for those countries and organizations that set up trade barriers to protect their own interests. Only by carrying out legal weapons with confidence and responsibility can we safeguard the legitimate rights and interests of Chinese enterprises.

Revelation three: law first, "law brain", "business brain" and use.

In the case of AOKANG litigation, the lawyer, Pu Ling Chen, head of the international trade and WTO law business group, who is a partner in AOKANG legal proceedings, analyzes that through many international trade disputes, there is a clear difference between Chinese enterprises and western enterprises. The Western business philosophy is to go ahead with the law, first understand, engage in laws, regulations and rules of international trade, then formulate business models within the framework of the law, and conduct business and competition.

Chinese enterprises often take the business as the first priority, and the business competition goes ahead. First, they should formulate business strategies and business models, develop business and business competition, and wait for problems and problems before they "cram".

He believes that if Chinese enterprises do not learn well first,

If you do not understand the laws and regulations of other countries, and do not study the potential pitfalls of the other side, you will not be able to suffer a great deal.

"Chinese enterprises must learn from western enterprises and adjust the competition procedures. They must use two brains, turn left business into business mode and competition strategy, and turn right brain into law and regulation consciousness.

It is okay for an entrepreneur not to know the law, but first we must ask legal experts to help do "legal health care". Before we go out, we must first diagnose the legal experts and take precautionary measures.

Pu Ling dust lawyer stressed.