Antitrust and anti-dumping struck China's tire exports will face life and death

Posted on 9/26/2014 4:27:12 PM

Due to the continued easing of the world economy, countries continue to undecided their economic, barriers to imports of products mentioned higher.
Just out from the special protective case near Chinese tire enterprises will face the United States has just recently launched for the "dual" (anti-dumping and anti-subsidy) investigation of the origin of Chinese tires, the Chinese tire industry began to respond to the American export market heightened trade barriers the upgraded version.
China Export & Credit Insurance Corporation Export Insurance Underwriting Department for the Americas and Oceania everywhere Changbai Hyperion Economic Observer said, "dual" head rotor 149701-0520 before the American tire industry is set for a round of trade barriers is the "special protection." Three years beginning in 2009 to levy 35%, respectively 30%, 25% tariff. Chinese tire industry due to the higher value added tax levy during the special protection, have been international market digested. But the United States recently launched the "double reverse" survey, is expected to reach 60 percent tariff. The equivalent of an enhanced version of the previous special protection. "Now the fear is that tax rates are too high, the rate has been higher than domestic enterprises and foreign customers the ability to digest, worried the American market since it closed for Chinese enterprises, while a large share of exports to China so the tire industry, which markets hardly able to undertake . "白海波 said," double reverse "was first implemented in early December, after the implementation, if companies do not have a good response, it will be forced to withdraw from the American market.
Double Star, Sailun other domestic tire companies are active in response to this major crisis, have turned to emerging markets, there are other places to go out and build factories in Southeast Asia, in order to avoid this risk American "double reverse" investigation brings higher and may even be fatal barriers to trade.
Wei Hui is right Sailun Tire Co., International Sales Manager. Sailun has early step in the production of more orders to Vietnam. He said the company in 2012 and build factories in Vietnam, Europe and other countries is to prevent tire export enterprises for greater efforts to sanctions. I did not expect this naive here.
Wei Quanhui for Economic Observer newspaper said the tournament round in 2009 by the United States Na Rute protective case, are "anti" once, the United States is through high tariffs, preventing domestic tire companies to enter the U.S. market. The company was estimated to certainly be a second wave, third wave of trade barriers. So the company decided to set up factories in Vietnam in 2012. I did not expect this move became a step ahead to avoid a "double reverse" initiatives.
Statistics show that during the "safeguard" in 2009, the United States implementation of the Chinese tire tariff restrictions for a period of three years, three years, imposed 35%, respectively 30%, 25% of the tariff, affected, involving tire exports to the United States once fell more than 60%, while overall exports to the United States fell more than half a tire.
Right Wei Hui said that the "double reverse" event export tax levied by the United States and may even reach 60%, then the game all round tire exports to the United States to Vietnam will arrange the production, otherwise you can not sell high tariffs. Current production plant in Vietnam can afford it a bit difficult, but also to find a way, in short, can not be produced domestically. Vietnam factory has been running for more than a year's time, almost able to support the export of American orders.
Double Star also began going out new plants overseas. They first set up factories in Southeast Asia. They've signed on August contract factories in Southeast Asia, according to the construction period, to be completed until next year.
At present, exports accounted for 60% Double Star Group total sales. The North American market share of about 30% of total exports binaries. They are expanding into other markets outside the United States, such as Africa, Asia, Europe and so on.
Minister of Overseas Project Department 邹志国 Double Star Group on the Economic Observer newspaper said the tire industry is a high-value, high-profit industries, 90s and even lucrative industry. This industry is characterized by large investment, large output, the pursuit of economies of scale. Gross industry about 5%. Currently, the domestic tire industry has excess capacity, but some places are still on the tire project. "Chinese tire enterprises large scale, low prices, comprehensive cost attractive, lower than the local price of 40% -50% in many countries they do not produce, even to the Chinese OEM." 邹志国 said.
Bai Haibo said that the U.S. "double reverse" investigation is conduction, followed by the European Union, Japan, India, Australia are likely to follow up, could be a chain reaction. The global economic situation is not good, a lot of countries will require Chinese market more open and protect local businesses, restrictions on Chinese companies to export more to their country.
邹志国 say, the Double Star Group from the Group's strategy in recent years, began to build the world's top brands, so in recent years to move factories in Southeast Asia, and this year began. This makes them fight for the initiative. Binary plant in Southeast Asia next year there will be some built. Their Southeast project in three phases, with a total area of 72 acres (150 acres), a capacity of 400,000 tires, two 600,000, three 3 million, for a total production capacity of 4 million tires.
It is understood, then the Double Star Group will also consider the future of the building factories in Africa, the Middle East, South America, Europe, and a global network of radiation. They will also benefit from the factory in China Jiaonan moved to Dongjiakou, will build a modern, automated factory.
And another tire trade enterprises Kinson Qingdao International Trade Co., Ltd. This year has just set up a branch in the United States, they have their own local warehouses in the United States, intends to close attention to the United States for the tire industry policy trends.
Qingdao Kinson sales person in charge Xue Shijie for Economic Observer newspaper said the company circumvent U.S. "double reverse" risk strategy is the production of truck and bus tires. Because the "dual" is aimed primarily at the passenger car market, but has no effect on truck and bus tires, so the company will increase sales of truck and bus tires. Meanwhile in the United States for the passenger car tire market policies floor, and then decide on the next step how to do the American market.
The higher a wave hit, this time the United States launched the "double reverse." If the highest 35 percent of a few years ago. "Safeguard" tariffs imposed can be digested, then this time 60% of the tariff would be a fatal blow, all caught in the domestic tire export trade will be spared exit the U.S. market.
Minister of Overseas Project Department head rotorDouble Star Group, said, "double reverse" survey of American domestic tire companies started worse, if it continues to sell, profit is negative. Trading loss could not do it anymore. Each tire export products have lost a lot of money, which companies bear, it may withdraw from the U.S. market. Domestic tire overcapacity, many companies are not at full capacity. Most of the domestic tire companies must export, while the United States is a big market. The loss of the American market, the company's day will be very sad.
The United States is the largest country in the global car ownership, 50% of tires from imports, but also the most important overseas Chinese tire market, the import of tires China's exports accounted for about one third of the total tire.
China is known as "the world's tire factory" in the title, the world's 75 largest tire manufacturers in 26 Chinese companies on the list, accounting for 12 of Shandong, which exports amounting to $ 1 billion in there 7.
2009 to 2011 the United States for three consecutive years on Chinese tires implemented a "special protection" restrictive policies, while Chinese tire exports also faces a number of trade protection measures to restrict from Europe, India, Brazil and other places. June 3 this year, the United States proposed on the origin of Chinese tires "double reverse" survey application, but also for China's tire exports set a higher trade barriers.

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