"Double anti-" Where are the tire exports

    "Double anti-" Where are the tire exports

    On July 15th, the U.S. Department of Commerce stated that it had conducted preliminary anti-dumping and countervailing investigations on passenger car and light truck tires imported from China. On the 22nd, the six members of the US International Trade Commission unanimously ruled that the above investigation was based on "reasonable" signs. This means that the U.S. Department of Commerce has officially obtained the token of the "double reverse" investigation. According to Xu Wenying, secretary-general of the China Rubber Association, the next time node of the case is: On August 1, ITC officially gave a written preliminary report; on November 21, the U.S. Department of Commerce will make preliminary decisions on countervailing subsidies; On January 20th, the DOC will make an initial ruling on anti-dumping.

    Xu Wenying pointed out that the "double reverse" case has three salient features. First, the amount involved is large. The tire special security case in 2009 involved a total of 2.1 billion U.S. dollars, this time being more than 3.3 billion U.S. dollars, which is the largest amount of trade remedy measures taken by the Chinese tire industry. The second is a long duration. The three-year high tariff expired on the tire special security case, and the “double reverse” review was carried out five times a year. The previous “non-road” tires for non-road use cases are typical examples, and it has been seven years since the case was filed in 2007. The third is the great intensity of sanctions. The maximum tariff for tires in special security cases is 35% in the first year, and the dumping rate claimed by the applicants is as high as 60.15%, and the subsidy rate is 25%, which is indeed unprecedented.

    Industry insiders believe that the double counter investigation is totally different from the situation in 2009. At that time, the financial crisis led to the economic recession in the United States and the automobile industry fell into a trough. Now that the U.S. economy has begun to "warm up," the auto industry has also picked up dramatically. Therefore, this move is intended to establish trade barriers against China. In addition, the U.S. Steel Workers Federation is a supporter of the Obama administration. Now it is in the early stage of the U.S. mid-term election. Therefore, the current proposal to set up trade barriers for China's tires is likely to include political factors.

    Once the "double counter-insurgency" is established, and the high tax rates of 60.15% and 25.73% are imposed, China's product in question cannot be exported to the United States at all, making the already fiercely competitive domestic market worse, and tire companies may face a crisis of production cuts or production cuts. Regardless of the amount of money involved, the type of industry, or the level of influence, the impact of filing a case on the Chinese tire industry is enormous.

    Zhang Yi, a lawyer who has represented many cases of double counter investigations, believes that the United States is an important market for Chinese tire exports. China's passenger car and light truck tires are highly dependent on the US market, accounting for more than 50% of China’s total tire exports. If the United States implements "double opposition", it will have a huge impact on China's tire market. Domestic tire companies will face a new crisis and will also affect the upstream and downstream industries.

    In addition, people may not be self-interested, and it is impossible to promote the development of the US tire industry. Among the tire export enterprises in China, foreign-invested companies occupy half of the country, and many are American companies investing in China. This pattern of “you have me and I have you” makes it inevitable that once trade friction occurs, it will All parties will lose both sides, so they may be opposed by many foreign-funded enterprises and at the same time increase the purchase cost of American consumers.

    Therefore, the "double opposition" is not only a damage to Chinese companies but also a damage to the global tire market, and it is even more damaging to the fairness of global free trade. This practice of depriving people against self is actually not desirable. It also hopes that the United States will think twice.

    The China Rubber Industry Association stated that it is organizing tire companies to prepare industries without damage and defense. At the same time, once the United States has filed a "double reverse" case, it will require the Chinese government to take countermeasures and effectively safeguard the legitimate interests of the Chinese tire industry.

    Relevant attorneys stated that Chinese tire companies and industry associations can adopt the “group defense alone defense” model in responding to “double counter” investigations. An enterprise's individual dumping defense, if successful, can only enable the defending enterprise to obtain a separate dumping rate, and the industry-wide harmless and causal defense can win the best dumping rate for the industry.

    Faced with increasingly frequent trade frictions, Deng Yalu, president of the China Rubber Industry Association, believes that the tire industry must carry out a full range of structural adjustments, transformation and upgrading is the only way. In addition, it is also an effective method for the industry to strengthen self-discipline and orderly competition and develop a broader market.

    Experts recommend 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 over-concentration; secondly, middle and low-end products. Adjusted to medium-to-high-end products, increase the proportion of energy-saving, environmental protection, smart products and brand-name products, make high-value-added tires the main direction of attack, nurture Chinese famous brands and world famous brands, and then further improve the quality control system to ensure quality. Reduce costs; the last is to strengthen self-discipline, standardize the market order, avoid jerks and cuts, low price competition and other vicious competition.

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