• Linkdin

China accuses EU for twisting facts in shoe probe

28 Jun '05
3 min read

Mandelson on June 10 agreed with Chinese Commerce Minister Bo Xilai to limits on growth of 10 categories of textiles under a special clothing-only World Trade Organization rule.

The EU may also apply similar limits to certain categories of shoes, notably those made from leather, which were subject to quotas until the beginning of this year.

Shoes were not subjected to the textile trade quotas that were lifted Jan. 1, so "it's impossible for EU imports to increase more than 500 percent," Cao Heping, vice dean of the Beijing University School of Economics, said.

The EU figures might have included imports of the 10 new states of the 25-member region which joined May 1, 2004, resulting in the steep increase according to European figures, Cao said.

"We are in direct contact with the Chinese authorities," European Commission spokeswoman Katharina von Schnurbein said Saturday. "We're exchanging information and we're open for discussion to clarify the figures."

The European Commission, the EU's regulatory arm, is being pressed by nations such as France to protect local manufacturers as unemployment in the 12-nation euro zone hovers at about 8.9 percent, near a five-year high. European economic growth has trailed the United States in 12 of the past 13 years.

Mandelson on June 16 warned there were signs of a "rising tide of protectionism" in the EU as the region struggled to compete with Asian economies.

Ste EU as the region struggled to compete with Asian economies.
e EU as the region struggled to compete with Asian economies.

Still, China and the EU might be able to resolve the shoe dispute because China, which made three out of every four pairs of shoes in the world, wanted its manufacturers to make higher-value products, Cao said.

"Chinese companies' share in the global market is so high because of their low prices," Cao said. "If we reduce some of our market share and yet control the supply channels, it will benefit China."

CCPIT

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