WORLD> Future for Chinese Businessmen Abroad
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WORLD> Future for Chinese Businessmen Abroad
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Spanish Arson a Warning to 'Made in China'
(china.org.cn)
Updated: 2009-08-06 08:51 As the Spanish government has yet to instigate measures to protect local producers, Chinese and Spanish shoemakers have been competing in an open market. This has had a detrimental effect on Elche's local industry, with over half local manufacturers closing and only the lower end of the market able to match prices. Yu Jinhua, the board chairman of Wenzhou Jierda Shoe Company, denied that shoes are sold at 3 to 5 euros in Elche. "It's just domestic factory price. Considering customs and transportation costs, the wholesale price of tanned hide shoes is usually 8 euros, while that of leather shoes is 12 to 15 euros," said Yu when interviewed with China Newsweek. This is still half the price of local producers' shoes since cheap labor costs give Chinese manufacturers a competitive edge. Wang Changchun said that only a few Spanish people were involved in the arson and that most people are still friendly to Chinese. "I don't feel discrimination against us in my business and life," he said. The Elche event is the first example of such violence against Chinese in Spain. "Instead of taking extreme actions, the European Union has been rather gentle towards China-made industries," said Zhang Hanlin, director of the China National Institute of the WTO with the University of International Business and Economics, "So don't exaggerate this event, it can be solved through legal means. The event sends a warning to us." As of January 1, 2005, the EU will lift import quotas on some categories of China-made shoes. This will not only offer a bigger market share for Wenzhou shoe manufacturers in Europe but may also usher in more trade disputes. At the 2nd International Anti-Dumping Forum in Beijing last October, Zhang predicted that the year 2005 will see more foreign countries charging China with goods dumping and the start of other trade conflicts. Though China has industrial associations and trade unions, their functions are limited since they are run under civil affairs departments while enterprises are administered by industrial and commercial departments. Chinese businesspeople in Spain established an emergency group only in the wake of the shoe-burning incident. There should be industrial associations composed of professionals and business representatives set up before these incidents take place to prevent possible frictions through negotiation and exchanges with foreign organizations. "China must also establish an international market distribution network," said Zhang. "Relying only on salesmen will result in China sinking into a vicious circle of low-prices, anti-dumping and trade frictions."
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