How to deal with the "double reverse" investigation of Chinese tires

2019-01-05


In recent years, China's tire products have been frequently subject to anti-dumping investigations, coupled with domestic environmental protection and other factors, tire exports have been under greater pressure.

Among them, the United States is the main initiator of anti-dumping investigations.

In January 2015, the United States launched a "double reverse" investigation into Chinese passenger cars and light truck tires.

Three years later, the U.S. Department of Commerce released the final result of the first administrative review of this investigation, and found that there was dumping and subsidy of Chinese tires exported to the United States.

The final rate of anti-dumping is between 1.50 per cent and 76.46 per cent.

In addition to passenger car and light truck tires, truck and bus tires were not spared.

In January 2017, the U.S. Department of Commerce issued a final ruling on anti-dumping and countervailing.

Among them, the anti-dumping duty rate is 9% and 22.57, and the countervailing duty rate is 38.61-65.46.

In the same year, on February 22, the case was concluded because the US International Trade Commission determined that Chinese imports did not have a substantial impact on relevant industries in the United States.

Similarly, non-highway tires are also affected, which were identified by the US Department of Commerce as having anti-dumping activities in April 2017.

The anti-dumping duty rate is between 33.08 and 105.31 per cent.

Affected by the anti-dumping investigations launched by the United States on Chinese tire products, China's tire exports to the United States have decreased significantly.

In addition, in recent years, Turkey has launched a number of anti-dumping investigations on rubber tires, agricultural machinery tires and other products produced in China.

In 2018, India also launched a countervailing investigation into new pneumatic truck tires made of rubber from China.

In May of the same year, the European Commission announced the preliminary results of the EU's anti-dumping case against Huaka passenger car tires.

This has a huge impact on China's tire exports.

According to industry statistics, in 2017, China exported 792173.794 tons of tire products to the EU, accounting for 14.96 of China's total tire exports that year.

However, recently, the export volume of Chinese tire manufacturers to Africa, Southeast Asia and other regions has increased, and the diversification of export markets has resolved the trade risks of tire manufacturers to a certain extent.

How can Chinese tires deal with the repeated "double reverse investigations"? Some people in the industry said that this requires two efforts.

On the one hand, tire companies need to accelerate the cultivation of their own brands, increase investment in research and development, produce high quality products, and increase export profits.

On the other hand, these companies should focus on improving service capabilities, so that the quality and service of Chinese tire products are recognized by the international market.