Zhejiang Merchants Wins "Spanish Burning Shoes Case" for 7 Years

"The Spanish shoe-burning case finally won. It proves that our company is legally operating abroad. We cannot burn our shoes." Yesterday afternoon, Xie Yufang, executive president of the Wenzhou Leather Industry Association, said.

A few days ago, the District Court of Elche, Valencia, Spain, made a final verdict on the “shoe burning event” in 2004, and 28 perpetrators were found guilty. As a plaintiff, the lawsuit of Zhejiang Merchant Chen Jiusong eventually won for 7 years.

However, while celebrating the protection of their legitimate rights and interests, Chinese businessmen have to withstand even more severe competition tests.

1.2 million pairs of shoes were burned In September 2004, due to the impact of the Chinese footwear trade on the local footwear industry, some signs of boycotting Chinese shoes appeared on the streets of Elche, a small town in southeastern Spain.

On the afternoon of September 16, the stores in Elche China Shoes City closed in advance. Chen Tiansong, a young Chinese from Qingtian, also closed the store early. That night, nearly a thousand local shoe and shoe factory workers gathered in China’s shoe city and called on the locals to “burn out all the shoes that entered the city.”

In the **, some people not only set up roadblocks, destroyed public property, but also wanted to forcibly break into local Chinese shops.

Chen Jiusong's container container has just arrived from Poland to China Shoes City for unloading. After seeing container trucks loaded with Wenzhou shoes, lawbreakers set fire to trucks and Chen Jiusong’s stores and warehouses, burning 16 containers and 12,000 pairs of Wenzhou shoes, and the direct economic loss was about 8 million yuan.

Why did the lawsuit fight for 7 years?

On September 29, 2004, the head of the Spanish China Law Firm and Wen Ji’s lawyer Ji Jiuhong accompanied the victim Chen Jiusong to the Elche District Court to file a complaint.

The Chinese Embassy in Spain submitted solemn representations to the Spanish government and demanded that the perpetrators be severely punished. Xie Yufang said that they also reported the situation to their superiors at the first time and organized a delegation to help protect the rights of the city of Elche. More than 60 Wenzhou businessmen in Elche City quickly raised more than 600,000 yuan, giving Chen Jiusong the “rights protection fee”.

Although Spanish government departments and courts are highly concerned about this "exclusive case", the litigation process is still faltering.

Ji Haohong said that the number of people involved in the case was so large that, with the permission of the court, he listened to the relevant personnel and finally learned who was involved in the shoe-burning incident.

After collecting evidence, 28 people were arrested and brought to justice. Some of these people were ignited and some had dumped trash cans.

The trial was finally concluded in May 2006 and a lawsuit was filed. During this period, however, each defendant’s lawyer disapproved of the case filed by the court of Elche City against this case and appealed it. At the same time, it also appealed to the Provincial High Court.

These procedures did not end until the end of 2010. On May 3 this year, the court finally ruled and the 28 Spanish defendants were sentenced to 6 months to 18 months’ imprisonment for compensation for the crime of disrupting public order and damaging the property of others. Chen Jiusong lost 26,000 euros in economic losses.

Why do Spanish shoe manufacturers hit Chinese shoe manufacturers?

After the shoe-burning incident occurred, shoe traders established the Spanish Chinese Footwear Association in order to "lock up" to protect their legitimate rights and interests. Most of the members are from Wenzhou.

Wenzhou Chen Xiaobing is the current president. He has been in Italy for more than 10 years and he moved to Spain seven years ago.

“When I heard that Spain would become the only footwear distribution center in Europe, I came over.” Chen Xiaobing said.

According to him, in fact, Spain used to make shoes like Wenzhou. The main footwear production base in Europe was first in Germany and was later robbed by Spain.

Footwear is a pillar industry in Elche. After becoming a European footwear distribution center, neighboring countries have wholesale shoes here.

Later, Wenzhou people began to enter the city of Elche. They shipped domestically produced Wenzhou shoes for sale.

“Currently, China’s shoe city was previously in the hands of foreigners, and was eventually occupied by Wenzhou people.” Xie Yufang said, “Wenzhou shoes have matured in 2004. Regardless of quality, price, style, are favored by the Spaniards. The price is less than one-tenth of the local shoes.”

Wenzhou shoes once made it difficult for local shoe factories to operate and workers were unemployed. "You have grabbed people's jobs and people's impulsiveness is understandable," said Chen Xiaobing.

The success of Spain's shoe-making enterprises in transforming the strategy of “burning shoes in Spain” establishes a model for legal protection of overseas Chinese and overseas Chinese. Xie Yufang believes that it can deter lawless elements and create a good business environment for Chinese businessmen.

However, competition is still heating up. Spanish shoe companies began to take a rational "confrontation" road.

Xie Yufang said that the sales situation of some local shoe manufacturers in Spain has changed. “Local distributors also started selling Chinese shoes, but posted their brand.” The price of the Chinese goods they bought was down, and we had no price advantage.

There is even more. Chen Xiaobing said that there are several shoe brands in the area and they have united to set up a "lawyers office" to find loopholes in Chinese businesses.

Last year, a local shoe company reported on four Chinese shoes including Chen Xiaobing. In Spain, which shoe company has a certain style of shoes, can be registered in the government sector and enjoy similar patent rights.

“They said that we copied their styles, but the shoes are all the same, and there is a trend every year. It's quite normal,” said Chen Xiaobing. Between the shoe companies, this generally does not mind, but Spanish local companies specifically find Chinese companies.

"The previous methods of violence have been better resolved. Now that they have used reasonable and legitimate weapons, they are not able to deal with them. There is no place to say that they have lost their lives," said Chen Xiaobing.

Chinese businessmen have gradually moved their positions. "People have no roots in foreign countries and it is not easy to do business." Chen Xiaobing said that many shoe companies have already withdrawn from Spain.

At present, Chen Jiusong, a victim of the Spanish shoe-burning incident, has returned to Guangzhou to start a trade company for shoes.

It is understood that there are 100 Chinese shoe companies in the Chinese shoe city in Elche. Xie Yufang said that there are now 200 Chinese shoe companies in Madrid, surpassing Elche.

It is an inspiration to regulate the most important event of burning shoes for both Chinese businessmen and Spanish shoe companies.

Xie Yufang said that the reason why the burned-shoe lawsuit was able to win was because Chen Jiusong’s corporate capital transactions, business premises, business personnel, and legal person identification were legal. "Our company must be legal and legal in order to integrate into the local community no matter which country it sells to."

She believes that regardless of the shoe-burning incident, or the subsequent anti-dumping, as well as the REACH regulation, the EU and other countries will continue to have local protectionism, trade barriers, and technical barriers. "So we have to take it slow, we cannot put a lot of shoes into the EU, we must improve the quality and open up the unpopular market."

Chen Xiaobing said that in recent years, with the financial crisis, the unemployment rate in Spain is high, and local trade protectionism is even more serious. It is only more legal.

"I don't want to be big, I just want to regulate, and let others not catch you." Chen Xiaobing said that if they have any major issues now, they will first reflect on the embassies and listen to their opinions.

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