CHINA: Footwear producers relocate to Indonesia
Up to ten shoemakers and footwear companies in China are relocating their factories or orders to East Java, Indonesia, according to local news reports.
The Asia Pulse news agency says the moves will create jobs for 20,000 locals in some districts of East Java province, including Pasuruan, Surabaya, Gresik and Mojokerto.
"The relocation will be done not only by Chinese companies but also by Korean and Taiwanese firms that have invested in China," Cipto Budiono, head of the East Java Trade and Industry Office, told Asia Pulse.
"The relocation is one of the Chinese companies' strategies to evade anti-dumping sanctions from US and European Union (EU) authorities."
The anti-dumping penalty means Chinese shoes exported from Indonesia will only cost 14% in import duty.
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