·The tires are “double-reverse”

China's tire industry has a pivotal position in the world. At present, China is in a critical period of transition from a big tire country to a strong country. For this reason, from 2007, the "double reverse" of off-highway tires, to the "special protection" of passenger cars and light truck tires in 2009, and now to the "double-reverse" of passenger cars and light truck tires, the United States The intention of China's tire industry to step by step and all-round blocking has become clear.


On June 3, 2014, the United Steelworkers Union launched anti-dumping and countervailing investigations on the US passenger cars and light truck tires. On January 21, 2015, the US Department of Commerce announced the preliminary results of anti-dumping. The preliminary tax rate was as high as 30.46%~100.02%. Except for a small number of enterprises, most of the tire companies in China were awarded a tax rate of 100.02%, which is tantamount to Closed the door to the US market.


China is a major rubber industry in the world and the world's largest producer and exporter of tires. The annual export volume of automobile tires (excluding off-highway tires) exceeds 5 million tons, and the export value is 14.5 billion US dollars. Among them, the United States is China's largest market for tire exports, accounting for 30% of total exports.


Affected by the "double-reverse" case of American tires, in the past six months, the inventory of China's tire enterprises has surged, and the operating rate has dropped sharply from 90% before the case to about 55%. The production and operation of tires and upstream and downstream enterprises are under tremendous pressure. There are more than 200 tire companies involved in the case, involving a total amount of 3.37 billion US dollars. In the near future, the enterprises involved in the case went bankrupt, which may further trigger a chain reaction. The employment problem of China's 350,000 tire industry workers is worrying. In addition, because the tire industry is the leader of the rubber industry, its operating conditions directly affect many upstream and downstream supporting industries. It is conservatively estimated that the livelihood of more than 1 million industrial workers will be affected in the upstream and downstream. This grim situation must be brought to the attention of the state.


In fact, the US “double-reverse” preliminary ruling seriously violated the relevant provisions of the WTO Anti-Dumping Agreement. Western countries such as the United States have always used China as a "non-market economy country" as an excuse to implement "separate tax rate test" and "respective test respectively." If the country does not respond in time to the United States, the US's crackdown on the Chinese tire industry will probably replicate in other industries and produce extremely poor demonstration effects worldwide. The US’s unfair treatment of state-owned enterprises in China will also have a domino effect.


At the same time, the US "double opposition" filing and investigation is extremely unfair. The applicant for this case is the United Steelworkers' Federation. No US domestic tire company has complained about the “double-reverse” case of Chinese tires, indicating that US tire companies do not consider it to be damaged or damaged by imported Chinese tires; “Double-reverse” was initiated during the highest period of historical profit in the US tire industry (profit of US$3.88 billion in 2011-2013), indicating that China’s export tires did not affect the profits of US producers. According to US import data, the number of tires imported from other countries is much higher than that imported from China. In 2013, the number of tires imported from other countries was 2.3 times that of imports from China. This shows that US tire manufacturers are not affected by China's tire exports to the United States.


In view of the current situation, it is recommended that the Ministry of Commerce of China communicate effectively with the US Department of Commerce before the final decision of the US International Trade Commission on July 10, 2015, and strive for a better outcome. The attitude and consultation of the Chinese government has played an important role in the final result of this "double-reverse" case. Our government can even take the necessary strong counter-measures against the United States, forcing it to eventually change the preliminary results.

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