Trade Barriers Affect Export Labor Cost Advantages No Longer

A few days ago, reporters learned from the Quanzhou Shishi Office of the entry exit inspection and Quarantine Bureau, in 2014, China

Exports amounted to 330 billion 700 million yuan, up 10.7% over the same period last year.

2015 1-4 months, footwear exports 99 billion 90 million yuan, an increase of 0.8% over the same period last year.

Although the export of footwear in China is on the rise, the hidden worries of growth have been highlighted, and the competitive advantage is gradually losing. We need to guard against the three major constraints.

Trade barriers affect exports

As the second largest export market of footwear in China, the European Union has been strengthening technical barriers to trade in recent years.

Under the influence of foreign technical barriers, the risk of our country's footwear recall has been greatly increased.

According to statistics, in 2014 -2015 April, China's footwear products were recalled 72 batches.

55 batches of health, environmental protection or health projects were not qualified, which were six batches of chromium exceeding the standard 51 batches, accounting for 92.72% of the recall proportion, 2 batches of two methyl fumarate, 1 batches of polycyclic aromatic hydrocarbons, 1 batches of pentachlorophenol, and 1 physical properties such as 10 batches.

The physical performance index is not qualified, it is easy to cause injury, such as skid resistance and wear resistance can not meet the requirements.

Exports are large but not strong.

Although the annual output of footwear in China ranks first in the world, the export industry is "big" instead of "strong". The export footwear is mainly medium and low-grade products, and the development mode of "changing profits for the market" has not improved significantly.

The United States is China's largest export market for footwear, and its export footwear price is only 10~30 US dollars / double interval.

The low price marketing mode not only affects the technological innovation of Chinese enterprises, but also easily leads to foreign anti-dumping.

For example, in December 2014, Peru originated from China.

Sunset review with cool dragging anti dumping measures and recent Turkey government imposed additional tariffs of 10% to 50% on imported shoe products other than the European Union.

Labor cost advantage no longer

Southeast Asian countries, especially Indonesia, Vietnam, Kampuchea and other ASEAN countries are in the period of rapid development of the industrial economy. Compared with China, they have lower labor cost advantages, policies, tariffs and other advantages.

According to statistics, the cost of labor in the Pearl River Delta is currently between 600 and 650 US dollars, while Indonesia is about 300 dollars, while Vietnam only has about 250 dollars, and Kampuchea is cheaper, with only about 100 dollars.

It is understood that these countries continue to increase support for footwear enterprises, undertake industrial pfer, further weakening the competitive advantage of China's footwear products.

The association of footwear distributors and retailers said that the value of Vietnam's exports to the United States has been growing at a rate of 20% to 21% per year since 2001.

In 2014, Vietnam exported $3 billion 550 million worth of footwear products to the United States, an increase of 22.4% over the previous year, an increase of 119% over 2010, accounting for 13.8% of the US footwear market share.

At the same time, according to the EU GSP Ordinance, Vietnam enjoys unilateral preferential tariff treatment from 2014 to 2016.

On the contrary, in 2015, the EU has abolished the GSP preferential treatment of China's exports, and the export of Chinese shoe enterprises is facing greater challenges.

At present, Vietnam and the EU are actively promoting the signing of the FTA. If the signing is successful, the tariff of Vietnam's footwear exports to EU will be reduced to 0, when its footwear exports will have more competitive advantages.