Sino-US Tire Warfare Exposes China's Tire Industry Dilemma

China and the United States tire war exposed the plight of China's tire industry, the industry believes that in the face of this trade dispute, we need to find out from the roots to open up the market countermeasures, and truly realize the change from relying on prices to rely on product quality to occupy the market.

According to the report of Yanzhao Metropolis Daily on August 10, the fierce battle of the Sino-US tire wars is becoming a "touchstone" for Obama's China-U.S. trade. On August 7, the hearing for the case was held in the United States. The final decision will be made by U.S. President Barack Obama next month (September). Around this case, all walks of life in China have spared no effort to express their opposition to and opposition to the protectionism of the US side.

The first special security investigation related to the life and death of the tire industry

According to relevant sources, special protection (ie, special safeguard measures investigation) was a "byproduct" of China's accession to the WTO in 2001, and it was a compromise clause. At that time, the United States was allowed to use special insurance under appropriate conditions. In the following eight years, the United States had six special safeguard investigations against China, but all were rejected by President Bush. This time, the tire industry special security case was the first special security investigation application after Obama took office as president of the United States.

In the interview, Fan Rende, president of the China Rubber Industry Association, said that due to the financial crisis, China's tire exports fell by a large margin in the first half of 2009, with declines ranging from 26% to 29% in January-April and 16% in May-June. about. If the relief measures are recommended by the U.S. side, China will lose its tires to the United States. At the same time, it will also affect the survival and development of the domestic tire industry and related upstream and downstream industries, or affect the employment of about 100,000 workers. At the same time, the United States tire manufacturers use preferential policies to set up factories in China to occupy the Chinese tire market, and the other in the face of China's tires to the United States for special protection, which is clearly a manifestation of trade protectionism.

Domestic tire industry exports nearly 40%

China is a tire-producing and exporting country. In 2008, tire production reached 350 million, of which 40% were exported and about one-third were exported to the United States. Affected by the financial turmoil, in the first half of 2009, exports fell significantly. It is highly likely that the first negative growth since the reform and opening up will occur throughout the year. Industry sources pointed out that in this situation, the implementation of relief measures will trigger more industries to seek protection, which will bring unprecedented difficulties to the export of tires and other products.

Faced with this trade dispute, many people in the industry believe that we should do more than just protest, but also need to find solutions to open markets from the root, and truly realize the transition from relying on prices to gaining market share with product quality.

Low-end tire industry has become a "hit area"

At present, although China’s tire exports rank second in the world, its brand output is weak and its profits are slim. In the trade disputes in recent years, the tire industry has become one of the industries that have suffered a high frequency of anti-dumping investigations. A person from the China Tire Industry Association stated that although China's tire exports now account for more than 35% of the total output, it is mostly low value-added products. It is understood that at present, 70% of the domestic tire market is car tires, and 30% is truck tires, which makes the market space for domestic tires much smaller than that of foreign companies.

China Investment Advisor auto industry analysts said that a number of tire listed companies have issued pre-additional announcements. However, how the special security case will affect the trend of tire listed companies still needs to wait and see.

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