My Online Journal

Published 2006-10-25 by OHMYNEWS

Aokang Group, a Chinese footwear giant, on Monday announced it would file a lawsuit against the European Union's anti-dumping duties.

According to a statement posted on the company's Web site, Aokang has retained a famous lawyer to bring the lawsuit in the EU Lower Court on the grounds that the duties imposed on Chinese shoes violate EU laws.

The company's president, Wang Zhentao, was quoted in the statement as saying, "China's shoe producers should stand up and use legal procedures to fight for their position."

In an interview with Chinese news agency Xinhua, Wang said the lawyer retained by Aokang was Pu Lingchen, a famous lawyer in China who specializes in anti-dumping cases.

Aokang, a Wenzhou-based company that produced 13 million pairs of leather shoes last year, and exported three million pairs, is the first company in the Asian footwear industry to take legal action against an EU anti-dumping levy ruling.

As reported earlier by OhmyNews, the EU imposed two-year anti-dumping duties of 16.5 percent on China-made leather shoes, and 10 percent on those from Vietnam, on Oct. 7.

The measures sparked strong opposition from China and Vietnam. China said the ruling lacked "sufficient legal and factual evidence" and threatened to take retaliatory measures.

Under current EU law, companies affected by the ruling can appeal.

However, according to Pu Lingchen, the legal proceedings in EU courts are lengthy and time-consuming. Pu has handled more than 40 anti-dumping cases and once overturned the EU's anti-dumping charges against China-made lighters in 2003.

By hiring Pu, Aokang shows that it believes it can win and that it is determined to follow the suit whatever the cost.

"China is an important member of the World Trade Organization and its firms have to use legal procedures to protect their interests and the industry's interests," Wang said.

"No matter how complicated the legal procedures are and how tough our task is, we believe in justice," he added.

Aokang's legal action comes just ahead of French President Jacques Chirac's official visit to China on Wednesday. The issue of the EU shoe tariffs will likely be on the agenda of the meetings. France had helped the EU reach a consensus on the tariff by proposing that it be imposed for two years instead of five.

The action also comes at a time of strained trade relations between China and the EU. In a policy paper on trade relations with China issued Tuesday, the EU gave China an ultimatum: open up the markets or face new protective tariffs on export products such as clothes, shoes and electronics.

EU members have expressed concern over the growing trade deficit between the two sides. In 2005, Chinese exports to the EU were worth $198 billion while EU exports to China were worth only $65 billion.

EU Trade Commissioner Peter Mandelson is expected to visit China next month in preparation for talks on trade and investment issues.