The EU ignores the fact that 98 per cent of shoe manufacturers are funded by private and foreign capital. Refusing to grant market economy treatment to Chinese shoe makers is a discriminatory action violating the principles of fair trade.

In 2005, foreign investment into China maintained sound momentum and the quality of foreign investment improved.

The Chinese side expresses regret at this. The Chinese side is conscientiously researching the EU and U.S. requests.

The U.S. has exaggerated its trade deficit with China.

Even some members of the EU itself have publicly expressed opposition to these measures.

This smacks of protectionism and is completely out of line with the overall trend of free trade represented by the (World Trade Organization) Doha Round.

The accusation from Europe is completely groundless. Shoe dumping from China to Europe does not exist.

China expresses regret at this. China is studying the consultation requests from the European Union and the United States seriously.

China has a competitive edge in the labor-intensive shoe manufacturing industry. They have ignored the fact that 98 percent of the shoemakers in China are privately owned.

China, with its low cost of labor, has a comparative advantage in shoe manufacturing.