The United States' special case against China’s tires is still pending, and India has also launched special security investigations on Chinese tires. The Chinese tire industry delegation has to “fight” New Delhi, India.

In an interview with reporters on August 27, the Secretary-General of the China Rubber Industry Association said that China has organized a delegation to India to attend a hearing. The Chinese side is currently in a more favorable position in responding to the investigation of special safeguards in India.

However, the Chinese side is concerned that if the US special security case is passed, it may set off a wave of trade protection of Chinese tire products in other countries, leading to a greater crisis in China’s subsequent tire exports and production.

Chinese delegation to fight in New Delhi

In May this year, the Department of Safeguards of the Ministry of Finance of India, on the application of the Indian Tire Industry Association, initiated an investigation of special insurance on Chinese passenger car tires.

Deng Yalu said that on August 21, the Chinese delegation traveled to India's capital Xinde to attend the hearing. It is understood that the Chinese delegates to India are composed of relevant persons from the Fair Trade Bureau of the Ministry of Commerce, the Commercial Office of the Chinese Embassy in India, the Minmetals Chemicals Import and Export Chamber of Commerce, the China Rubber Industry Association, and related tire companies. On the same day, Indian tire manufacturers, importers, downstream users, consumers, and lawyers from both parties attended the hearing.

At the hearing, Yang Ni, the legal department of the Minmetals Chamber of Commerce representing the Chinese tire industry, said that the Indian prosecutors’ lack of factual evidence regarding the sharp increase in imports, Chinese tires disrupting markets and industrial damages, was viewed from the import statistics of Indian customs in various years. China is not the country with the largest growth rate of tires exported to India, lower than South Korea and Thailand. Chinese imports did not constitute a so-called market disruption of Indian domestic industries, nor did they cause damage or threats to the country’s industries.

According to the survey, a large proportion of the tires that India imports from China are used to assemble vehicles for direct exports to Europe and the United States. In 2008: China exported 6.57 million tires to India, while Kumho and Hankook reached 3.7 million, accounting for 56.3% of the total.

Similar to the United States special security case, Indian tire importers, downstream users also stand on the side of the Chinese side. They all expressed their position that the data and evidence quoted by the Indian prosecutors were false, that the quality of Chinese export tires was high, the prices were fair, and the models were complete. The domestic tire industry could not meet the needs of tire users, so it was necessary to purchase tires imported from China. Hopefully, India The authorities terminated the investigation as soon as possible and did not take any special safeguard measures against my export tires.

According to the China Rubber Industry Association, the next step is to continue to cooperate with the Ministry of Commerce’s overall response arrangement, increase consultations with relevant government agencies in India, and strive to properly resolve this case.

China is worried that countries will follow suit against China.

At present, the United States is still in an impasse against China’s special security case. The relevant person of the Fair Trade Bureau of the Ministry of Commerce stated that the anti-sanction proposal submitted by the Rubber Association was still under study. The legal defense of China's special security case has already ended and will ultimately be decided by the U.S. government.

However, the results of the United States' protection against the Ward case are nothing more than three possibilities: the compromise scheme of passing, dismissing and lowering the tariff rate. CBI analysts believe that no matter what kind of results, it will have more or less adverse impact on China's tire industry.

The main issue involved in this special security case was semi-steel radial tire. In 2008, China’s exports of semi-steel radial tires were 110 million, of which 43.16 million were exported to the United States, accounting for 39% of total exports, and accounted for 17% of radial tire output.

The above analysts believe that if the Obama administration passes sanctions, China’s semi-steel radial tire exports will be severely impacted. If China reduces its exports of semi-steel radial midges by half, domestic excess production capacity of over 8% to 10% of semi-steel radial tires will occur in the country, which may force Chinese companies to lay off workers and shut down factories.

If this is rejected, the long-term prospects for exports of Chinese tire companies tend to be positive. However, in the short term, due to the early replenishment of stocks by US tire traders, domestic start-up of tires in September and October may still experience a short-term decline.

However, the above analysts believe that the possibility of a compromise is greatest. The U.S. government may take a balance between the normal tariff of 4.4% and the special tariff of 55%, but this result will still have a negative impact on Chinese tire companies.

The above analysts also believe that when the United States special security case passed, other US industries are bound to follow the trend, it may also set off another country's trend of trade protection of Chinese tire products, leading to greater crisis in China's follow-up tire exports and production.

â–  On April 29, 2009, the United States formally launched an investigation into China's tire product special protection. On June 29, it decided to impose a special three-year tariff on China's tires, and final decision will be made in September at the latest;

â– On May 18, India launched a special survey on the tires of passenger cars in China. This is India's fifth special survey on China launched in 2009;

â–  On June 18, the Brazilian Foreign Trade Commission decided to impose a final anti-dumping duty on passenger and cargo vehicle radial tires imported from China. The validity period is five years.

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