China says EU probe into shoe imports causing trade friction

[HenryTo]

Trade frictions between China and the EU flaring up again? This is definitely not a good development. The difference between the "data" coming out of China and the EU is definitely too daunting to ignore:
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Sunday June 26, 2:04 AM
China says EU probe into shoe imports causing trade friction

Photo: AFP
BEIJING (AFP) - China 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 price of the products rose by 28 percent, the statement said without going into specifics or discrepancies with the EU numbers.

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.