Updated: 2005-06-25
China has expressed strong opposition to an EU investigation into its shoe exports and accused Brussels of manipulating trade figures and causing trade friction.

"The Chinese side strongly opposes the launching of an anti-dumping investigation by the European Union which is being done without a practical or legal basis," said Commerce Ministry spokesman Chong Quan in a statement on the ministry website.

"China urges the EU to start with the facts, make prudent decisions and avoid trade frictions."

Beijing had lodged formal representations with the EU on alleged errors in calculating trade statistics and urged Brussels to check its data, Chong said.

European trade chief Peter Mandelson announced last week an anti-dumping probe into imports of Chinese work shoes.

The EU commission has nine months to determine if imports of Chinese-made work shoes for construction and industrial sites are being sold at below production costs which is a sign of "dumping."

The commission produced figures showing imports of Chinese-made shoes surged in the beginning of the year after the end of a global textile quota system on January 1.

The statistics showed an rise on average of 700 percent in import volumes and a 28 percent drop in prices for six categories of leather and fabric shoes.

Chong strongly disputed the data.

According to Chinese custom figures, the quantity of exported leather shoes and slippers to the EU were up 22.8 percent in the first quarter, while the value for the shoes fell by 59 percent and the price was down by 28 percent, he said.

The EU and China headed off a trade war earlier this month in Shanghai when Mandelson and his Chinese counterpart Bo Xilai agreed to limit the growth of 10 Chinese textile products to the EU to between 8.5-12.5 percent until the end of 2007.

However, the agreement does not include shoes.

China Leather Association on Friday warned Chinese shoe-makers to prepare to respond ahead of an European anti-dumping investigation that is expected to open officially at the end of the month.

Su Chaoying, secretary-general of the association, called on all Chinese labour safety shoe-makers to make an active response.

"I fear that some firms may give up the fight because the volume of labour safety shoes is small," he said.

The association said it was the obligation of labour safety shoe-makers to respond.

"Otherwise, it will not only impose negative effects on the exports of this kind but also result in chain reactions in other classes," the association said.

It added it might even bring about trade frictions with other countries if the firms forced out of the EU turned to other markets.

The association predicted the EU is likely to launch investigations in several months' time into material and leather shoes from China.

That will be a heavy blow to China's shoe-making industry because they are two major categories of Chinese exports to the EU.

The association has set up an early-warning system to keep companies informed about the latest information. It has also promised to offer legal help.

The proposed investigation into whether Chinese labour safety shoe-makers are dumping will last a maximum of nine months.

Chinese enterprises would be forced to pay punitive duties if the EU wins the case.