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Aokang Steps up EU Legal Battle
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Chinese shoe manufacturers and a national leather industry association yesterday flung their weight behind Aokang Group's legal action against European Union anti-dumping tariffs.

Aokang, one of China's biggest makers of leather shoes, announced on Monday that it had hired a lawyer to sue the European Commission, the European Union's executive body, over the 16.5 percent duty slapped on Chinese-made shoes.

"We support Aokang in its action to protect China's footwear industry and defend the national interest," said China Leather Shoes and Sport Shoes Commission spokeswoman Wei Yafei.

And other Chinese shoemakers may join Aokang's legal battle against the European Union.

Wenzhou Leather Industry Association spokeswoman Xie Rongfang said that some firms "plan to join Aokang in the lawsuit, and some will appeal to legal protection through the distributor in the European Union."

Justifying his firm's legal action, Aokang President Wang Zhentao said: "China is a member of the World Trade Organization. As an enterprise in China, we should protect our footwear industry and defend our rights through various legal procedures and measures."

Ministry of Commerce spokesman Chong Quan said earlier that the anti-dumping duty lacks legal foundations and is not based on fact.

"It has damaged the proper rights of shoe manufacturers in China, and China will reserve the right to take further measures," said Chong.

The controversial tariff was imposed on Chinese-made leather shoes on October 7, and is set to last for two years.

Chinese shoe manufacturers have questioned the legitimacy of the investigation and research conducted by the European Union that led it to make this decision.

"The European Union's measure is inappropriate and unreasonable. It has caused consternation throughout the entire industry," said Wei Yafei.

"We support Aokang's decision, although we are not sure what impact their action will have," Wei added, cautioning that the legal procedures will be very complicated and time-consuming.

"Aokang will need to collect a vast amount of evidence and conduct detailed research in order to deal with the case, and it will also prove very costly, " Wei added.

(China Daily October 25, 2006)

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