Recently, the natural rubber market is oversupply, and natural rubber prices have reached a low point. With the drop in the price of rubber, the profitability of domestic rubber companies has dropped significantly. Low operating rates and low order volumes make rubber companies feel business difficult.
On June 3, 2014, the US Steel Workers Union (USW) represented the US passenger car and light truck tire industry with applications from the US Department of Commerce and the US International Trade Commission requesting passenger and light truck tire products from China. Starting anti-dumping investigations and anti-subsidy investigations, Chinese tire exports are in crisis.
Tire export encounters trade barriers
According to U.S. Customs statistics, China’s tires involved in this case were exported to the United States in the amount of US$2.078 billion in 2014. In the first quarter of 2014, exports were US$510 million. The plaintiff listed on the indictment a large number of Chinese export and production companies, including many companies such as Tianjin Bridgestone Tire Co., Ltd.
According to media reports, USW International Chairman Gerald said: “The unfairly-priced tires imported from China once again have an impact on the U.S. market. US domestic tire manufacturers are rapidly losing market share in the past two years because they are from China. The number of imported tires rose rapidly, and domestic shipments in the United States were greatly reduced.
In addition, domestic tire manufacturers and their employees have not obtained sufficient benefits from the recovery of the U.S. economy.†The dumping involved in the case was as high as 92%. In short, China is depriving the United States of employment opportunities. Gerald said.
Yu Shengxing, a partner of Haihua Yongtai Law Firm, believes that this is the United States following the expiry of the special protection measures for Chinese cars and light truck tires in 2009. It has also changed the pattern and used double counters to set trade barriers against Chinese tires. The Chinese tires Enterprises should actively respond to this and safeguard their own interests.
The reporter learned that in April 2009, USW filed an application with the US International Trade Commission to initiate special security investigations on tires of passenger cars produced in China, which caused heavy losses in Chinese tire exports. On September 11, 2009, US President Barack Obama signed an order to impose a three-year heavy tax on Chinese tires, which took effect on September 26.
The United States imposed an additional tariff of 35%, 30%, and 25% on imported Chinese cars and light truck tires on the basis of the original tariff of 4%, and then imposed a 35%, 30%, and 25% additional tariff respectively for the next three years. This resulted in great Chinese exports to the US tire industry. The blow. This time, the USW lifted the double-sticks to the Chinese tire companies, causing the Chinese tire exports to face crisis again.
Businesses actively respond to trade frictions
In the face of frequent trade friction cases, how should Chinese companies respond? Deng Yalu, president of the China Rubber Industry Association, believes that the Chinese tire industry is undergoing a full range of structural adjustments, transformations, and upgrades. In addition, the entire tire industry to strengthen self-discipline, orderly competition and open up a broader market is also an effective method.
The Kunshan Inspection and Quarantine Bureau recommends tire production and export companies: First, they must stabilize traditional markets such as the United States, Europe, and Japan, expand emerging markets such as Africa, South America, and ASEAN, implement a “diversification†strategy, and reduce the risk of excessive concentration of tire export markets.
Secondly, we must adjust the product structure, adjust medium and low-end products to medium-to-high-end products, increase the proportion of energy-saving, environmental protection, smart products, and brand-name products, and use high-value-added tires as the main direction to cultivate Chinese famous brands and world famous brands.
Thirdly, it is necessary to further improve the quality control system, improve self-inspection and self-control capabilities, reduce production costs and enhance international competitiveness on the basis of ensuring the quality and safety of tires; Fourth, strengthen self-discipline, standardize the market order, and avoid vicious competition such as cutting corners and materials and low-price competition marketing. The appearance of the phenomenon.
It is understood that in recent years, industry associations and governments have issued many standards governing the tire industry, such as "conditions for entry into the tire refurbishment industry" and "Interim Measures for the Administration of Admission Notification of Waste Tire Comprehensive Utilization Industry". In addition, the Ministry of Industry and Information Technology has recently publicly solicited opinions on the “conditions for the entry of the tire industryâ€. It is hoped that under the guidance of the national policy, the tire industry can complete the transformation and upgrade better and faster.
Zhang Hongmin, chairman of the Shandong Rubber Industry Association, said in an interview with the media that tire companies are also building a factory overseas to deal with trade frictions. Domestic large tire companies such as Linglong and Saiwan are setting up factories in Thailand, Vietnam and other raw material production areas. It can not only reduce the cost of raw material procurement, but also reduce the impact of potential international trade friction.
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