July 2010
  News & Facts
 
International Leather Forum 2010 to be Held in Shanghai

2010-07-15
The China Leather Industry Association (CLIA) has organized the ‘World Leather Industry Cooperation Forum’ for the past three years consecutively. This year, now renamed ‘International Leather Forum’ the fourth session will be held at the Shanghai Rainbow Hotel on 31 August 2010 and the theme will be Low Carbon Strategies for the Leather Industry.

Over 400 participants from China mainland, Hong Kong, Taiwan and overseas countries are expected to attend, including distinguished leaders from the tanning, footwear, leather garments, leather goods, fur and leather chemicals industries. Scientific experts, testing centers, industrial zone planners, exhibition organizers, local government representatives, international organizations and associations will also be represented.

Focusing on the influence of low-carbon economy to the leather industry and the industry’s coping strategy, participants will deeply discuss in different aspects. devote in the development green manufacturing industry, use the limited natural resource to provide more healths, low-carbon and fashion product, creates more comfortable enjoyment for the humanity.

The low-carbon economy is a economic type with the foundation of low energy consumption, low pollution and low emissions and another tremendous progress the human society after the agricultural civilization and industry civilization. The low-carbon economy's essence is the efficient energy uses, the clean energy development, the green GDP, and its core is the innovation of energy technology, emission reduction and industrial structure adjustment, as well as the fundamental transformation of human sociaty. After Copenhagen conference, the low-carbon economy's development model changed from an idea, a theory to practical actions. As a developing country, we also more and more realized that the right to emission is actually the right to development. As the traditional manufacturing industry, the leather profession has adjust itself to deal with challenge, devote to innovation to be ready for opportunity, follow the rule of scientific progress, safty development, green development and highly intensive and effective development to occupy superiority in the new round competition of low-carbon economy and realize its sustainable development.

 
 
Dongyang named as Luggage and Bags Production Base of China

2010-06-17
It is big event and happy day for Dongyang luggage and bags industry to be awarded the name of Luggage and Bags Production Base of China in June 16, 2010.

Assessment group composed of industrial experts and scholars made an examination of application documents and visiting to local industry and markets on June 11 to 12. Based on survey result the experts group reached to a consensus on awarding the honoring title to Dongyang city, Zhejiang province.

As of the end of 2009, the leather goods making industry had experienced 30-year growth and become one of six largest economies in Dongyang city. The current industry has 1177 companies and 70,000 employees engaged in processing of the luggage and bags and supporting products, Dongyang has formed a complete industrial chain from raw materials supplying, accessories making, designing, manufacturing to marketing.

Weakness in designing and technology innovation are the issues that need to be solved by local industry, the industrial park in Qianxian town and material and parts supplying market are under construction and will soon put into use.

 
 
Small scaled tanneries closed down in Xiaoshan Area

2010-06-17
Nowadays vice director of Zhejiang provincial Standing Committee Wang Yongming headed a Law Enforcement Group inspecting Linjiang Effluent Treatment Plant and enterprises that are possible to pollute water in Xiaoshan area.

The amount of industrial effluent discharge in Xiaoshan Area dropped to 181 million tons in 2009 from 196 million tons in 2007. In recent years no one of water polluted enterprises approved to establish in the area, further more small scaled companies were closed down for preventing the pollution to Qiangtan River. All the outlets alone the river were cut off for stopping waste water discharge to the Qiantang river.

 
 
88% of imported footwear in Chile sources from China

2010-06-17
Footwear imported from China plays a key role on boosting Chilean footwear trade, 47.2% increasing in April’s imported varieties of shoes, sales amount to 68 million pairs annually. Chile heavily depends on imported footwear because only 10 million pairs of them made in local industry. China is the main footwear sourcing country for Chile, footwear imports grew 7.6% during the first four months to 21.1 pairs, among them 88% came from China. The imported footwear proportion from China had surged to 86% last year from 58% in 1997.

At the same time exports saw a slight increase, with 12.5% rising in export value and 2.6% falling in the price of shoes.

 
 
Leather production cut in Taihu Basin

2010-06-17
Tanneries in Taihu Basin with leather production less than 0.8 million pieces should be closed, according to a drafted regulations on administration of Taihu basin announced on website of the State Council Legislative Affairs Office. The drafted regulations setting aim at protection of Taihu basin water resources and flood control and drought relief.

The regulations set out details of requirements on elimination of the outdated production and enterprises, including industries of paper making, leather making, printing and dyeing, oil refining, electroplating, cement and glass that cause water pollution in the lake area.

New projects and expansion projects are forbidden to build around the lake because it is used as drinking water source, if the existed projects fail to meet this provision they will be dismantled or closed.

 
 
Around 1000 tanneries to be eliminated during the period of twelfth five-year plan

2010-06-18
The secretary general of China Leather Industry Association (CLIA) Su Chaoying told the reporter during interview on June 4, saying energy saving and emission reduction is the most important task on leather industry twelfth five-year plan, the drafted plan is on comment in the industry that will be announced next year.

During the twelfth five-year plan around 1000 tanneries with less 30,000 pieces of production will be closed down, 10% of COD and ammonia nitrogen compounds emissions will be reduced in the industry, said Su Chaoying.

By the end of this year the Ministry of Environment Protection will public the list of tanneries qualified with the environmental protection standards, the preparatory for survey conducted by tanning self-regulation group is under way.

The announcement of qualified tanneries aims to promote tanning cleaner production and update the technology on pollution control, so as to coordinate with task on energy saving and emission reduction.

 
 
CIFF creates a trade platform to access to the markets at home and abroad

2010-06-21
Mr. Lu Hua, one of responsible persons for China International Footwear Fair (CIFF) said on the interviewing with a reporter that exhibition for CIFF expands to 10,000 square meters in area, by the end of May more than one hundred of footwear enterprises registered the fair, which includes the countries and regions of Italy, Portugal, Spain, Japan, Pakistan, Taiwan, Hong Kong and domestic enterprises. 80% of booth for the footwear has been confirmed three months before the exhibition comes.

As rapid growth of Chinese footwear industry the trade fair of CIFF has become more and more important to the industry, CIFF grows to more international and more professional trade fair that creates a trade platform to connect with buyers at home and abroad.

Lu said this edition trade fair will highlight the brand and fashion footwear, trade activities and releasing of fashion trend. Buyers from home and abroad are invited to meet their counterparts on the fair, for instance several hundred foreign buyers from northern and western Europe, Australia, Russia, Southeast Asia, Sri Lanka, the Americas are invited to visit the fair, for domestic buyers the organizers sent the invitation letter to one thousand department stores and shopping mall, further more the promotion activities are launching on large scaled markets national wide.

The organizers hope to increase the exhibition areas of footwear to 30,000 square meters within two years, when the time comes the CIFF will grow to the largest footwear trade fair in China.

 
 
China: footwear stresses their sales on rural markets

2010-06-21
As national polices intensify consumption on rural areas and severe competition in urban markets more and more Chinese footwear enterprises like appliances to the countryside put their eyes on vast rural areas.

Ministry of Commerce encourages the foreign trade footwear companies to sell the products on domestic markets, meanwhile the experts point out that it is good way to expand market on countryside.

Products original sales on foreign markets are superior on quality, appearances and package, and much competitive on price than the same products sold on domestic, on certain degree it can boost the domestic products to improve their quality, and enhance their competition.

The experts added for releasing pressure of footwear foreign trade the industry should take various measures to promote exports and meet the changes of international market.

 
 
Vietnam exports more footwear to China

2010-06-22
Bilateral trade between China and Vietnam amounted to 9.693 billion U.S. dollars in the first five months, up 34.7% year on year.

Exports for Vietnam footwear to China posted a 50.3% growth to 55 million U.S. dollars during the first five months of this year.

 
 
China scraps export tax rebates on 406 products

2010-06-23
China's State Council, or Cabinet, has approved the scrapping of export tax rebates on 406 products, effective July 15, the Ministry of Finance (MOF) said Tuesday in a statement on its website.

The products included some steel and non-ferrous metals products, fertilizers, as well as some plastic, rubber and glass products, the statement said.

The ministry did not offer any reasons for this move.

The research center operated by the Galaxy Futures Company Limited said in a note that the new measure seeks to discourage exports of energy-intensive products in line with the government's intention to adjust industrial structures and cut pollution.

Bai Jingming, vice-director of the research institute for fiscal science with the MOF, said the new policy mainly targeted high-polluting and high-energy-consuming products, which is another "iron hand" measure by the government to save energy and further reduce emissions.

The State Council said in May that the government would use economic, legal, technical and even administrative measures, when necessary, to ensure meeting the goals set for cutting emission.

According to the plan laid out in 2006, China will reduce its per unit GDP energy consumption by 20 percent, compared with 2005 levels, by the end of 2010.

Bai added, as China was accelerating its economic restructuring, the country would allow taxation to play a larger role in promoting energy conservation and environmental protection.

 
 
Quanzhou accelerates footwear exports to Brazil

2010-06-24
Brazil is the strongest economic country in Latin America with huge potential consumption market. Quanzhou-based footwear enterprises in China sense the opportunity and put their on Brazilian market.

According to Quanzhou Inspection and Quarantine Bureau goods exported to Brazil worth 4.12 million U.S. dollars on the first five months, most of these exported goods are footwear. Bilateral business relationship has been strengthened in the industry.

The bureau said Brazil has large demand on exported footwear that attracts Quanzhou footwear. According to authoritative forecasts Brazil will rank eighth world economy on next twenty years, and the fifth largest consumption market in the world.

 
 
Kangnai footwear received big orders from America buyers

2010-06-28
Normally during May to July the sluggish season comes to Wenzhou footwear sector, in contrast our production is busier than normal level because we received several big orders from America buyers, said Wu Lingming, an overseas trade director in Kangnai Group.

These America buyers are well known brand Levis and luxury car maker Cadillac, previously they placed their orders to Taiwan and Hong Kong funded footwear makers in Dongguan city. This year Wenzhou footwear earned the trust from America buyers with their technical strength and dependable quality.

Mr. Wu was pleased to say “our footwear is mostly sold in EU markets, now America come to us for buying our shoes, 50% growth in the first half exports come out on America buyers.”

 
 
Chinese exchange rate reform affects to footwear export

2010-06-28
People's Bank of China announced the exchange rate reform on June 19, on the date of June 22 RMB saw sharp appreciation of 295 basis points, this means huge economic losses for us, said general manager of Baoyu Footwear, a foreign trade company in Shanghai.

For foreign trade enterprises the currency reform indeed causes the bad impact on exports in short terms, but it will be good for long terms, as a large scaled enterprise we strive on making transition and updating our products for producing the high value added products, but it can not be done in short period of time, the second currency reform creates new challenges for our exports, said one of footwear exporters, adding the challenges for large company are more severe than small scaled ones, because it is hard for them to low the production and labor costs.

Once national policy change it could have sacrifice the interests for someone, but we should adapt the changes by expanding the new market and increasing our products added value for minimizing our losses, said the general manager of Baoyu Footwear.

 
 
Poor quality results reported on testing of children’s shoe

2010-06-28
The industrial and commercial bureau in Wenzhou launched a quality inspection on children’s shoe for second quarter of this year, 21 pairs of sample shoes were drew from 17 shoemakers for testing, the result shows that 11 brands of tested shoes are reported unqualified that includes brands of Senbodulun, Lacoste, Bobby , Jojo, Baby De Mode and Combi, etc.

The failure to reach standards mainly attributes the properties of wear resistance for the excess filler added on sole for reducing production costs. Furthermore nine samples fail to meet the quality standard on product labels and makings.

 
 
Eco-leather technology course held in Beijing

2010-06-28
The tanning technological class was co-organized by Ministry of Commerce and China Leather and Footwear Industrial Research Institute, which started from May 18 and run for 28 days with 32 trainees from 15 countries attending the train course.

The training focuses on studies of technologies on eco-leather and cleaner production and exchanges the successful experiences on coordination development between environmental protection and leather industry, the industrial experts gave the lectures on the training class, as part of the training agenda the trainees came to Xiji city in Hebei province for experimental practice and company visiting.

The organizers said they believe the training class will be conductive to strengthen the technical cooperation and exchange over the technology and research, production and management, personal training and trade, and will help updating technology in line with fast growth of the industry.

 
 
China, Taiwan sign historic trade pact

2010-06-30
Taiwan and China signed a historic trade pact Tuesday in the boldest step yet towards reconciliation between the former archfoes, 60 years after the civil war that drove them apart.

The Economic Cooperation Framework Agreement, hailed by both sides as a milestone and a commercial imperative in an era of strong regional cooperation, was signed by senior delegates in the southwest Chinese city of Chongqing. The signing of the agreement, by far the most sweeping ever between the two sides, marks the culmination of a Beijing-friendly policy introduced by Taiwan President Ma Ying-jeou after assuming power in 2008. “Signing this agreement is not only an important milestone in economic ties between the two sides,” said the leader of the Taiwanese delegation, Chiang Pin-kung. “It’s also a huge step forward for the two amid the trend of regional economic integration and globalisation.”

In Taipei, Ma said the pact meant peace and prosperity between China and Taiwan was no longer a distant dream but a reality “within our reach,” with implications for the region as a whole. “Everyone will be able to feel it. In particular, countries that previously had to pick sides between Taiwan and China can now simultaneously develop peaceful and prosperous relations with both,” he told a group of businesspeople. The agreement — a “win-win” formula according to Chiang’s Chinese opposite number, Chen Yunlin — is just about trade, according to the governments in Beijing and Taipei. But many outside Taiwan’s Beijing-friendly government, especially members of the anti-China opposition, insist it is also a significant and potentially dangerous political step for the island, which has ruled itself since 1949. “The Ma government’s pro-China platform has put Taiwan under China’s economic and political clout and this will hurt Taiwan as an independent, sovereign country,” said Tsai Chi-chang, spokesman of the main opposition Democratic Progressive Party.

China is Taiwan’s largest trading partner, its largest investment destination, and now also home to a growing number of Taiwanese. It is estimated that about one million people from the island live in China, especially in the Shanghai area. They, and thousands of short-term travellers, now have access to 370 direct flights a week, whereas only a few years back all air travel had to come via Hong Kong.

The trade pact looks set to push interaction between the two sides to a new level. The deal will confer preferential tariffs, and in some cases zero tariffs, on 539 Taiwanese products from petrochemicals and auto parts to machinery — representing 16 percent of the island’s total export value to China.

At the same time, only about 267 Chinese items, or 10.5 percent of China’s export value to Taiwan, will be placed on the “early harvest” list enjoying zero or falling tariffs. China itself acknowledges that the deal is “unbalanced” in Taiwan’s favour — which opponents on the island say is proof that Beijing is grabbing more than just trade concessions. Ma’s administration has said the pact will create 260,000 jobs on the island and boost growth by up to 1.7 percentage points. The two sides on Tuesday also signed an agreement on protection of intellectual property rights.

 
 
China offers zero tariff treatments to 4762 products from Bangladesh

2010-07-06
At the United Nations High Level Conference on Millennium Development Goals, the Chinese Government made the commitment of rendering zero tariff treatments to the products of Least Developed Countries (LDCs), which accounts for 95% of all Chinese taxable items. Starting form 1 July 2010, China will render zero tariff treatment to 4762 products originated from Bangladesh and other 32 Least Developed Countries (in accordance with 2010 China Customs Nomenclature), accounting for 60% of all Chinese taxable items. Thus, China has become one of those developing countries that open their markets to LDCs to the largest extent.

China is one of those developing countries that rendered zero tariff treatment to LDCs at the earliest time. Since 2001, China has been gradually rendering zero tariff treatment to certain amount of products from 41 Least Developed Countries (LDCs). Up to now, China has been providing zero tariff treatment to about 1000 products from LDCs, which cover almost all products those countries exported to China. In 2008, the LDCs export to China accounted for 23% of their total export volume, making China the largest market for LDCs.

The 4762 products from LDCs that will enjoy zero tariff treatment include poultry products, medicinal materials, plastic appliances, leather, timber, ready made garments, etc. According to China’s statistics in 2008, the 4762 products account for 98.2% of the total volume of LDCs’ export to China. China will, according to the opinions of countries concerned and the status of the implementation of the measures, continue to enlarge the range of products from LDCs that enjoy zero tariff treatment and gradually increase the ratio from 60% to 95%.

 
 
China: The largest luxury goods market by 2015

2010-07-08
China is set to become the world's largest market for luxury goods in five years after overtaking the US for the number two slot, according to research by the Chinese Academy of Social Sciences.

The institute states that China's luxury goods market was worth $9.4bn by the end of 2009, accounting for 27.5% of the world's luxury goods market - and is expected to reach $14.6bn by 2015.

 
 
China: Production accelerated in leather sector

2010-07-07
The total industrial output value for leather sector surged 26.1% from previous year to 254 billion yuan in the first five months, 19.2 percentage points higher than that in same period last year.

At the same time the export value accounts for 31% of total sale revenue, 2.7 percentage points slow than previous year.

 
 
The 13th “GLM” cup competition unveiled its results

2010-07-12
The 13th “GLM” cup competition for fashion leather and fur clothing designing launched final competition in Haining Leather Town on the afternoon of July 10. There are 30 works coming out from preliminary contest competing in the final contest.

Zhejiang Yinshan Fur Limited Co. won the golden medal, the silver medals went to the works designed by Yinshang Fashion Co., and Lianyu Clothing Making Co., and three companies of Huasi, Gelaimei and Xuebao are the Bronze Winners.

More than one thousands of designers and students from 50 national universities and colleges took park in the preliminary contest; Creative Times is the theme of competition. This is 13th consecutive year of “GLM” cup competition, organized by China Leather Industry Association and Haining Leather Town, regarding as landmark for China leather fashion trend.

The contest has played a vital role on improvement of Chinese leather clothing designing and creation capability since it established and also provided a stage for talents to realize their career dream.

 
 
Italian shoemakers launch footwear promotion in China

2010-07-14
Organized by Italian Trade Commission and Italian Footwear Manufacturer Association, more than sixty Italian footwear companies came to China recently for launching a promotion activity, the typical fashion styles of shoes made in 50’s and 80’s also displayed on this activity.

Beijing Representative Office of Italian Trade Commission said “this is second year for Italian footwear announced fashion trend in Beijing, the promotion activity has built a communication bridge to connect Italian footwear manufacturers and Chinese traders and distributors.

The organizers believe the current event has played an vital role on footwear expansion in China”

 
 
 
  Data & Statistics
 

 I/E Report and Analysis of China's Main Leather Product


Export of main commodities in leather industry (1-5, 2010)  Unit:US$ 1,000
Item
Unit
1-5,2010
Diff. (%)
Qty.
Value
Qty.
Value
Leather Shoes 10,000 Pairs 36,633 3,418,069 7.2 12.2
Traveling Goods & Cases        5,746,534   17.8
Leather Garments 10,000 Pieces 499 243,586 24.8 27.1
Fur Garments 10,000 Ton 32 151,445 35.5 151.4
Leather Gloves 10,000 Pairs 21,331 268,664 14.9 39.5
Leather Balls 10,000 10,543 202,888 30.0 42.5
Raw Hides & Skins 1000 Ton 2 1,414 13.9 -7.1
Finished & Semi-Fnishied Leather 1000 Ton 17 147,218 88.5 89.5
Footwear Components 1000 Ton 110 692,230 -17.7 12.2
Machinery 1000 Sets 23 35,253 87.8 163.8
Total        10,907,303   18.3

Import of main commodities in leather industry (1-5. 2010)  Unit:US$ 1,000
Item
Unit
1-5,2010
Diff. (%)
Qty.
Value
Qty.
Value
Raw Hides & skins 1,000 Tons 533 793,254 9.1 48.9
Finished & Semi-Fnishied Leather 1,000 Tons 380 1,513,907 32.8 42.9
Footwear Components 1,000 Tons 8 104,897 7.9 10.5
Machinery Sets 915 15,678 -64.5 35.6
Machine Parts Tons 88 2,298 20.1 57.1
Traveling Goods & Cases        320,750   58.2
Leather Garments 1,000 Pieces 34 10,459 37.1 47.2
Leather Shoes 10,000 Pairs 527 181,699 0.8 11.9
Leather Gloves 1,000 Pairs 378 2,680 -30.8 46.2
Fur Garments 1,000 Pieces 2 784 -17.0 47.5
Leather Balls 1,000 645 2,007 101.5 28.8
Total        2,948,412   42.0