According to Chinese customs officials, footwear exports from the Fujian province and Quanzhou city have been adversely affected by the war in Iraq.
US companies such as PSS, Wal-Mart and Pager and also clients from the Middle East have cancelled footwear orders from Chinese manufacturers. Many Chinese firms claim orders from US customers have been halved.
Quanzhou city is one of China’s key footwear production areas and exports one third of its shoes out to the Middle East. The city’s income from this industry is the third highest in China and has been rising continuously in recent years. However, in February and March 2003 the income declined 2.1%. This is the first time it has fallen since 1999 and experts have attributed it to the Iraq war.
Since the start of the war, shipping costs to the Middle East, Europe and the US have increased by between 10% and 40% due to the rising price of fuel and added risks. Manufacturing costs have also been affected by increases in the cost of shoe-making materials.
