Tire special protection case will stop anti-dumping "not extinguished"

The US tire special protection measures for China will expire on September 26 this year. Once again faced with this large export market in the United States, many tire companies in China are already eager to try. Although affected to a certain extent by the 2009 “tire special protection case”, there is still no other country that can instigate the U.S. position as the first market for Chinese tire exports. The data for the whole year of 2011 and the end of 2012 to the end of May shows that the United States is the largest exporter of Chinese tires, whether it is car-car tires or car tires.

As far as the total exports of Chinese car tyres are concerned, in 2011, a total of 1.42 million tons of passenger car tyres were exported, an increase of 6.8% over the previous year. Affected by the special safeguard case, the number of exports to the United States continued to fall by 17.7% (a decrease of 19% in 2010), and the total annual export volume totaled 290,400 tons. From January to May of 2012, the total export volume increased by 10% year-on-year, and the number of exports to the United States finally stopped falling, which was an increase of 12.3% year-on-year.

According to relevant personage analysis, this aspect shows that the U.S. economy is recovering. On the other hand, the impact of the tire special protection case is gradually weakening.

In terms of truck and car tires, in 2011, China exported a total of 2.06 million tons, an increase of 12% over the previous year, and exports to the United States amounted to 378,300 tons, an increase of 12.8% over the previous year. From January to May of 2012, the export of truck and car tires increased by 20.4% year-on-year, and the number of exports to the United States was 169,000 tons.

In September this year, the tire special security case is about to expire. This is a good news for Chinese tire companies. In response, the responsible persons of a number of tire companies stated that they expect that total exports and net profits will increase in the second half of the year.

However, some people reminded that Chinese tire companies must establish “crisis awareness”. If they don’t adjust their industrial structure when they are untimely, turning “brilliant profits and quick sales” into “excellent quality and value for money” will inevitably lead to similar dilemmas.

After the special safeguard case, the turmoil has not completely subsided, and Colombia’s anti-dumping investigations have begun again. It is reported that on June 22 this year, Colombia launched an anti-dumping investigation against Chinese tires. According to statistics, during the whole year of 2011, China exported 30,000 tons of tires to Colombia. In the first five months of 2012, China exported a total of 16,680 tons of tires to Colombia.

Although compared to the United States, the Colombian market appears to be “insignificant”, but this policy will also have a certain impact on some tire companies. Some people believe that Chinese companies still lack the "law" to actively avoid anti-dumping.

It is understood that China's tire industry has accumulated anti-dumping investigations in a dozen countries including India, Argentina, Egypt, Brazil and Turkey. It has never been seen that China, as a large emerging trading nation, has increasingly expanded its economic and trade contacts with other countries in the world. Under fierce market competition, there are more and more opportunities for trade frictions and disputes.

In this regard, relevant experts said: “The fundamental reason for anti-dumping is that China’s labor force is relatively “cheap”, and many workers are carrying out heavy work with meager wages, and the natural cost of the products produced is low. In the eyes of the country, it seems that it is damaging the rights and interests of its local industries. From the current point of view, adjusting the industrial structure, optimizing product quality, and increasing product prices are more feasible ways to avoid anti-dumping.”

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