China denounces EU shoe duties as unfair

China has harshly criticised an EU decision to place anti-dumping duties on some Chinese-made shoes, calling the action groundless and discriminatory as manufacturers also prepared to fight.

China's Ministry of Commerce, which handles international trade, said China was "unhappy" about the EU decision to impose duties of up to 19.4 per cent on leather shoes.

Spokesman Chong Quan said Chinese shoemakers were not dumping and "have not caused substantial damage" to European shoemakers, according to a statement issued on the ministry website.

"This approach lacks any basis in fact and law, and violates the principles of fair trade," said Mr Chong.

The European Commission on Thursday formally approved the anti-dumping duties, which include duties of 16.8 per cent on leather shoes from Vietnam. It said the decision affected about nine of every 100 pairs of shoes bought in the EU.

Brussels says it has evidence of serious state intervention for Chinese and Vietnamese shoe exporters, including non-commercial government loans and bargain deals on land. It will phase in the duties over six months from April 7, starting at about four per cent.

Mr Chong said Brussels was "clearly discriminatory" in refusing to accept that Chinese shoemakers operated in a "market" setting.

China has said it may take the dispute to the World Trade Organisation and Mr Chong said the EU should reconsider its decision and "make a determination in conformity with WTO rules".

Some China-based footwear manufacturers said the EU's long-threatened decision had already hurt orders, with European buyers wary of price uncertainties. Others said they had yet to feel any effect.

Michael Wu, who leads a coalition of over 100 China-based shoemakers fighting the anti-dumping duties, told Reuters the ultimate effect of the EU measure could be "very large".

"In the short term it will be moderate, but it will definitely affect lots of companies if the level rises past 19 per cent," said Mr Wu, who is deputy chairman of Hong Kong-listed shoemaker Pegasus International Holdings Ltd, which runs a shoemaking complex in far southern China. An editorial in the English-language China Daily said the EU decision would not save shoemakers in Europe.

"The curb on China shoe imports will not sharpen EU shoemakers' competitive edge," it said. "Painful but inevitable industrial restructuring would be the better option."