Aokang and some other Chinese companies were forced to take legal action in Europe in 2007 to protect their interests in the European market.

"China's market economy status is not recognized in Europe, so investigators from Europe adopted reference figures from third countries to evaluate our costs of production. It is unfair because those figures cannot truly reflect the real situation in China's footwear industry," said Wang from Aokang. "We still can make little profit at the prices offered."

Absorbing lessons from this four-year international trade spat, Chinese footwear makers are learning to open their distribution channels and improve product quality to secure their position in the international market.

"Companies should not only focus on increasing export quantity, but also need to pay more attention to improving product quality. High-end and value-added products will protect companies from low price competition and maintain profit margins in the global market," said Xie Rongfang, secretary-general of Wenzhou Shoes and Leather Association.

Large Chinese companies such as Aokang and Kangnai Group in Zhejiang have learnt to reject small orders from European customers to secure their global reputation.

"We will evaluate a client's reputation and the price range of their products to decide whether to accept the orders," said Wang Hailong from Aokang.

Aokang's shoes can be sold for around $20 in the European market, while the average price for Chinese leather shoes is around $10.

Companies such as Kangnai Group have set up branded stores in foreign countries to promote their products to overseas buyers. Wei Yafei from CLIA revealed that Chinese-branded products account for 10 to 15 percent of the overall export volume.

After the trade barrier was established by European policy makers, Chinese shoes manufacturers have become keen to explore business opportunities outside European countries.

"The overall export performance in Wenzhou did not have a serious effect over the past five years. Companies are moving to explore emerging markets such as Cuba and countries in Africa to support growth," said Xie.