Spanish Arson a Warning to 'Made in China'

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(china.org.cn)
Updated: 2009-08-06 08:51

On September 16, 2004, a Chinese-owned shoe warehouse was burnt down in Elche, Spain, causing damages worth over 1 million euro. This incident sounds a warning to China's developing foreign trade sector that "made in China" commodities need to go beyond ultra-low pricing to establish their position in the long term.

On the evening of the arson, several hundred Elche locals crowded into the Karus industrial area, where many Chinese shoe wholesalers are based, throwing rocks at shops and shouting protests. Around 20 locals then set fire to a shoe-filled warehouse owned by Chinese entrepreneur Chen Jiusong. All the stock was destroyed, but thankfully no one was hurt. A week later some Elche locals staged another, more peaceful, demonstration against Chinese shoemakers.

Wang Changchuan, manager of the Spanish branch of Wenzhou Jierda Shoes Company, told China Newsweek: "Our hearts still flutter with fear." The shops are now operating normally again, though they do sometimes shut earlier than they used to.

Local police have attached great importance to this incident, stationing many officers around the area to avoid further problems, said Wang, adding that now any demonstrations must first be approved by the government so that police may inform Chinese shops to close ahead of them.

Chen Jiusong has employed lawyers to handle the incident but it is hard to say whether the loss can be reclaimed, according to Wang.

The Chinese Embassy in Spain, Ministry of Foreign Affairs, Ministry of Commerce and China Leather Society all responded quickly, asking Spain to guarantee the security of Chinese residents and punishment of the attackers, as well as compensation for the affected businessmen. By September 23, fifteen protesters had been arrested.

A Spanish news agency, EFE, reported that after the attacks anonymous posters had been spotted in Elche, claiming that local shoemakers are in crisis because of competition from Asian, and especially Chinese, manufacturers.

Elche is a traditional shoemaking base for Spain and for Europe as a whole. In recent years an increasing number of Chinese shoemakers have come to the area with low priced shoes to register companies and rent or buy shops. Manufacturers from Japan and Vietnam have followed suit, but Chinese (mainly from southeast China's Wenzhou City) dominate.

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