WENZHOU -- Since the European Union's (EU) removal of anti-dumping duties on China, shoemakers in the major footwear export base of Wenzhou have cautiously returned with a changed strategy of targeting mainly the EU's high-end markets.

The latest statistics from Wenzhou customs showed that from April to June, the city's shoe exports to EU have grown by 10.16 percent year-on-year to 56.96 million pairs, with the aggregate turnover rising by 35.26 percent year-on-year to $356 million.

Compared to the first quarter, the exports volume declined by 4.83 percent while the turnover surged by 21.87 percent.

The 16.5-percent anti-dumping tariff on shoe exports originated from Wenzhou was imposed by the EU in October 2006 and lifted in April.

Jiang Xinghua, a supervisor for Aokang Footwear's international operations, told Xinhua that the sequential decline in second quarter exports volume indicates the "self-restraint" exercised by domestic shoemakers who hate to fall back on the low-price strategy that led to export restrictions for almost five years.

"If we didn't resist those low-price orders after the punitive tariff was lifted, our export growth in 2011 could have doubled from the previous year," said Jiang.

Caution prevails

Shortly after the punitive tariff was removed, the China Leather Industry Association (CLIA) cautioned domestic shoemakers to learn from the past, get familiar with the EU's laws on footwear exports, and standardize their operations to create a sound foundation for China's shoe exports.

Statistics from the Ministry of Commerce showed that the EU's punitive action has made 20,000 people jobless and reduced China's footwear exports by 20 percent from 2006 to 2010.

Dubbed as China's Footwear City, Wenzhou, in eastern Zhejiang Province, has seen locally manufactured shoes exported to EU, the United States, Australia, Malaysia, and central and east Asian countries, but the EU is its largest market.

Wang Zhentao, chairman of the board of Aokang and the deputy director of the CLIA, said that removal of the punitive tariff was "a relief" to domestic shoe exporters. "But we cannot be carried away with the news and turn blind to future challenges," he said.

Wang's caution has been widely viewed as necessary. The Kangnai Group, another leading domestic shoemaker, for instance, has moved to upgrade its production lines so as to specialize in the production of high-end products.

As a result, footwear rolling off from the new production line are more comfortable, more durable, and sell for more than 2,000 yuan ($309) a pair, about six to seven times as much as the average.

Zhou Jinmiao, general manager of the Kangnai Group, said that cheaper products were usually considered the "equivalent to poor quality."

"That is why Chinese shoemakers have begun to spare no efforts to improve the quality of their products," Zhou said.

He adds that it's too early to be optimistic, as new barriers in the form of higher quality criteria or stricter environment-protecting standards may be imposed.

Get picky

Stimulated by the removal of the punitive tariff, local shoemakers have seen a barrage of orders from European customers. Instead of jumping at the offers, many of them chose to make a careful decision.

The Kangnai Group, for example, has politely refused a Spanish customer who placed an order of 300,000 pairs of genuine leather shoes with each priced at only $10.

Miao Renzan, general manager of the Kangnai Group's overseas market, said that receiving such an order might put Kangnai at risk for dumping. Currently, Kangnai's orders mainly come from the EU's top name brands, such as Hugo Boss.

"By cooperating with large name brands, we will not only improve our production technologies but also keep the accusation of dumping at bay," Miao said.

Looking to the future, Zhou said enterprises should get familiar with international trade rules and stay on top of the latest developments of overseas peers.

"The Chinese government should more actively seek the recognition of market status, otherwise, the EU can easily use the production costs of the same industry in Brazil or India to calculate our production costs and thus put us at a disadvantage," Zhou said.