
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, February 7, 1995                   TAG: 9502070094
SECTION: BUSINESS                    PAGE: B-6   EDITION: METRO 
SOURCE: Associated Press
DATELINE: ATLANTA                                LENGTH: Medium

SPORT SHOE COMPANIES POISED TO EXIT CHINA IF TRADE WAR COMES

Makers of athletic footwear, one of the main products targeted for U.S. tariffs against China, said Monday they're already planning to shift production elsewhere if efforts fail to avert a trade war.

The manufacturers, in Atlanta for the final day of a big sporting goods trade show, also said the major loser in a trade war would be the U.S. consumer, who would quickly have to pay more for sneakers, cleats and cross-training shoes.

There was some uncertainty among exhibitors over precisely which sporting goods would be affected by the threatened U.S. sanctions, but many believed the $7.9 billion athletic footwear business, which depends heavily on Chinese imports, was likely to be hit.

``We're not letting all our eggs be in the same basket. If we have to, we could shift production to Indonesia - of course, not overnight,'' said Alain Ronc, president of Nashville, Tenn.-based Mitre Sports International, a leading producer of soccer equipment, including shoes.

Ronc said most U.S. footwear companies rely on China for about half of their production. He said most probably have contingency plans, and there would likely be a rush to increase production at alternate sites.

Tom Cove, director of government operations for the Sporting Goods Manufacturers Association, said the proposed 100 percent tariff was limited to certain specific footwear styles such as women's models and some jogging shoes. That should make it easier for companies to adapt, he said.

``In the past, they've looked at much larger categories,'' Cove said. ``We're kind of glad it's not as wide, as a group.''

Cove said the sporting goods industry in general supports efforts to combat Chinese piracy, the main reason for the proposed tariffs.

Jon Bobbett, managing director of Champion Footwear of Tarrytown, N.Y., said he doubted many shoe companies were caught off guard by the Clinton administration's weekend threat to impose 100 percent tariffs on $1.08 billion worth of Chinese products. The United States and China agreed Monday to resume talks next week in Beijing in hopes of heading off a trade war.

``This has been brewing quite a while,'' said Bobbett, whose company is a licensee of apparel maker Champion.

by CNB