Some of the main low-end retail market Chinese tires, even to compete with American-made tires and caused a large number of unemployed workers in the United States?

 

Two factories, five production lines, dozens of employees in China's Jiangsu Suqian ...... This is all the belongings of a typical small tire factory. May seem that these smaller local private Chinese tire companies, European and American counterparts actually causing panic and even the government.

 

China cheap tires cheap Chinese tires caused panic in Europe and America caused panic in Europe and America

"We have more than once heard warnings from foreign counterparts from where the business contractors." The main local subcontractors for large enterprise OEM tire factory heads, said Zhang Weidong.

 

They initially felt the emotion from the United Steelworkers (WSU) 2014 in June posted on its website a press release entitled "Steelworkers have been on China's passenger car and light truck tires unfair competition to bring a new round of trade litigation. "The paper said tire imports from China dumping margin of 60.15 percent, exceeding the government subsidy rate was 25.73%, and the above two allegations of "dual" investigation requirements.

 

November 24, 2014, the US Department of Commerce, responded, prima facie imports from China passenger car and light truck tires exist receive government subsidies over the phenomenon of subsidy margin of 12.5% -81.29%.

 

US Department of Commerce ruled in a public book, the Chinese enterprises in Fujian Giti Tire and another undisclosed names of Shandong enterprises selected as the "mandatory respondent companies" are proposed countervailing duty rate of 17.69% and 12.5%.

 

US tire industry website TireBusiness this rhetoric is fierce: "China is deliberately vague 'owned' the concept of some tire companies, they can be like entering a free bar as easily get financial support, do not have to pay almost any price ... ... "

 

Controversy began to focus on whether the Chinese government to gather tire manufacturers provide a "contrary to conventional improper subsidies" on.

 

"Local governments have subsidized the tire business does. But I understand the situation from peers, did not exceed 2% of the developing countries under the US government would not to mention the countries in the world to develop policies to encourage enterprises to export US this allegation is obviously in a decentralized local tire industry low employment rate of attention. "Zhang Weidong said," If someone tells you that the main low-end retail market Chinese tire can actually compete with the US-made tires, and to the resulting in a large number of unemployed American workers to the point, would you believe it? "

 

According to public data from China Customs, China-US tire trade in the most stable in 2013, the number of US tire imports from China was 88.09 million, and these tires are mostly low-grade products, the average price of only $ 37.9 each.

 

In fact, the history of Chinese tire industry and has more than once played against the Americans. 2009, the two sides had alerted the world broke "safeguard" in the tire trade. At that time, the US International Trade Commission to disrupt the US market by Chinese tire, implement a three-year tariff restrictions on Chinese tires.

 

Also in 2010, China Hebei Xing Mao Tianjin United Tire & Rubber Company and on the "US anti-dumping duties on Chinese tires and countervailing duties are not legitimate" issue, the US Commerce Department sued and won the case. At that time the Chinese lawyer Daniel Porter said the biggest flaw is that the US Department of Commerce, the Chinese at the same time as a market economy country and non-market economy countries to treat.

 

"The US Department of Commerce has always been the Chinese identified as 'non-market economy countries' taxes and countervailing duties against countries with market economies, on this issue they used a double standard." Daniel Potter explained, "while at the same when the anti-dumping duties and countervailing duties, they can not even clarify whether the extent of double taxation and the existence of double taxation. "

 

However, the latest action in 2014 US Department of Commerce showed that China's favor in these cases did not play an exemplary role in subsequent similar cases.

 

Even more worrying is that the United States Department of Commerce during the investigation, Russia, Belarus and Kazakhstan Customs Union conducted a follow. Last September, the agency announced that it would import from China, trucks, buses, trolley buses and trailers tires anti-dumping investigation.

 

"This is the Chinese tire industry wants to see the situation, in the current situation, in other countries and regions, including the EU, Japan, Australia and India have to wait and see attitude, does not exclude the possibility that the United States follow suit - this is the 'special protection' period had also been confirmed. "a tire has been involved in the enterprise market research analyst, said," because these areas are the main destination for Chinese tire exports, so once formed a chain reaction, the country does not small and medium enterprises will face less severe tire pressure to survive. "

 

As the Chinese tire industry had feared, after the United States as the second largest overseas market, the EU's attitude was also pretty tough.

 

French treasury Treasury Secretary Bruno Beizha Er even still promoting the RMB clearing services in Paris during the country's authority on economics journals as "tire Yellow Peril" in the title published articles on the Chinese tire industry conducted a fierce attack .

 

"We were raised to undertake export tasks for the United States and Europe, compared to the United States, the Europeans harder to eat rice." Zhang Weidong frankly.

 

Although the industry is expected, the European tire market will maintain a 5% compound annual growth rate until 2019, and tire consumption capacity of the world's second level. But with the "labeling" in the local step by step, tires automotive industry has become one of the products in the control of the most stringent. From the "green" and "security" these two indicators, the highest trade barriers in Europe are global tire market.

 

Up to now, only the United States Department of Commerce for the "countervailing" to make a preliminary ruling, in April will be the final determination, and the "anti-dumping" the survey results will be announced before the end of this month. As for the "countervailing duties," the official collection, will have to wait until May this year, announced the results of two surveys and the US International Trade Commission made a final ruling on this before implementation.

 

Chinese tire industry practitioners in the waiting period, the hearts of more and more anxious. At present, more than 80 percent of Chinese tire companies are small and medium enterprises, and export business as the main profit point, which exports 30% of total exports to the US accounted for tires. In recent years, Chinese tire exports competitive, these SMEs are limited bargaining power in the face of "dual" US action, they have almost no ability to resist risks.

 

"We can accept the maximum rate is 10%, no matter how high is really difficult to sustain." Zhang Weidong said. He said that if the rate of more than 15% this year, the US tire prices rise space is limited, it is perhaps only the larger tire companies can Go On.

 

As this was on top of the cusp of Fujian Jia General rejected a reporter interviewed on the "dual" storm, but from the best in the US market through the recent price increase of 9.5% across the board initiatives, the "double reverse" the sword has in such a large tire companies who have left their mark.