When the damage to the Chinese tire industry’s exports from the US Tire Special Protection Case has not fully “healed,†Argentina recently decided to end anti-dumping investigations on Chinese-made tires and adopt final measures for taxation. This measure will undoubtedly make the Chinese tires that are frequently trapped in the current international market worsen.
An expert from the Tire Industry Association, who declined to be named, said in an interview with reporters: “Chinese tire companies should unite and actively fight for the rights in the international market. Otherwise, we will be trapped in the market that we will work hard to develop. The vicious circle of people."
Taxation up to 23%
Recently, the Ministry of Commerce issued an early warning that the anti-dumping measures officially issued by Argentina are as follows: 23% anti-dumping tax on tires for tourism vehicles, 10% anti-dumping tax on tires for agricultural and forestry vehicles, and 17% on tires for buses and trucks. The anti-dumping duties; in addition to a specific model of radial tires to suspend tax for 6 months. The above measures will take effect on June 22, 2011 and will be valid for 2 years.
It is reported that Argentina’s anti-dumping investigation on Chinese tires began in September 2009 and has been continuing for nearly two years. The Argentine anti-dumping measures are aimed at cars, passenger cars, trucks and agricultural and forestry vehicle tyres originating in China: The review report submitted by the relevant Argentine authorities believes that the dumping margin of Chinese tyres in the Argentinean market is 165%.
Deng Yaxi, secretary-general of the China Rubber Industry Association, stated that Argentina is one of the countries with the most anti-dumping measures in the world, and China is one of the countries with the most anti-dumping measures, of which one-quarter is aimed at Chinese products.
Deng Yaxi believes that the number of Chinese tire exports to Argentina is much less than that of the United States, and its impact on Chinese tire companies is not as serious as the United States’ investigation of Wartech.
According to an interview with a reporter from China’s Union Business Daily, related personnel of the Qingdao Shuangxing Board of Directors stated that in response to foreign anti-dumping duties imposed on the Chinese tire industry, the company will promptly adjust relevant policies and look for new exports of products such as Africa and the Middle East.
Brand weakness is the root cause
In response to the Chinese tyres, Fan Rende, president of the China Rubber Industry Association, believes that because China’s own brand tire exports account for less than 8% of the country’s tire export volume, the weak brand influence of rubber products is a technical cause for difficulties.
Fan Rende said that it is necessary to support Chinese enterprises to acquire foreign companies, patents, and brands, establish an independent brand marketing network system, and encourage companies to open up markets directly or rely on local markets to export directly to Europe and the United States.
In view of the large number of domestic tire export channels, low access conditions, and confusing export markets, he said that it is necessary to change through the government's formulation of relevant laws and regulations and self-discipline of the association, and strengthen the government's management and rectification of export companies and export trading companies. It is proposed to cancel some products. Poor quality, low export prices, poor reputation of the self-management of foreign trade companies and dealers.
According to statistics, China's tire industry is now undergoing anti-dumping investigations in more than a dozen countries, as well as special safeguard investigations in the United States and India. Fan Rende said that the association should promptly grasp the information of trade frictions and respond as soon as possible and respond actively.
“The most important thing in responding to anti-dumping is to innovate products to meet market demands, grasp market information, and timely adjust the product structure. We encounter limited production of products subject to anti-dumping investigations, and then innovate another high-profile product that not only can raise prices properly, but also We can evade anti-dumping and digest the cost of anti-dumping," said the person in charge of the Chinachem Rubber Office.
Tire companies must work together
According to incomplete statistics, China's annual tire exports account for more than half of the total output. The development of overseas markets is still seen as a top priority for many domestic tire companies and is the bottom line that must be adhered to. However, in response to anti-dumping investigations in various countries, some tire companies are still not active.
In response, a company official disclosed to reporters: “Because many tire companies do not export much in markets such as India and Argentina, they may think that these sanctions have little to do with their own. Attitude, follow the strategy, waiting for others to pave the way. However, such a serious situation is obviously not one or two companies can handle it, and the tire industry must work together to maintain a good export situation in the industry."
In addition to seeking legal rights and interests, Chinese companies should also consider adjusting their industrial layout.
It is worth mentioning that in the tire trade friction between China and the rest of the world, production companies in China, such as Michelin, Bridgestone, and Kumho, have not been affected much. Although the products of these enterprises in China are also restricted, multinational companies can respond by adjusting the origin of exported tires. Therefore, domestic tire companies that have suffered heavy anti-dumping duties from tires may also consider overseas placements.
Some domestic tire companies that have factories overseas and have built a marketing network have also received positive feedback. Exquisite tires have established a solid marketing network in more than 160 countries and regions, and 8 of them have annual sales of 20 million US dollars. In addition, the domestic tire companies have to exploit more markets in addition to guarding the market. According to the person in charge of the Delta Tire, Delta Tire aimed at emerging regions such as Africa, the Middle East, and Southeast Asia, and used these market increments to fill the suppressed demand in the United States and other regions.
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