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EU imposes anti-dumping duties on Chinese truck and bus tires On March 12, 2018, US time, the US Department of Commerce issued the final results of the first administrative review of anti-dumping and countervailing subsidies for passenger vehicles and light truck tires from the United States against China, and determined that dumping and subsidy activities existed for Chinese tires exported to the United States. The result of the final anti-dumping duty rate is: Qingdao Sen Qilin 4.41%, Jiatong Tire 1.50%, 2.96% tax rate enterprises and 76.46% national tax rate enterprises. The results of countervailing preliminary inspections were: 20.86% of Jiatong Tire, 16.16% of Cooper (Kunshan) Tire Co., Ltd., and 119.46% of China National Rubber Co., Ltd., which was reviewed but was not reviewed by 19.84% of the companies.
On March 27, 2018, the Ministry of Commerce and Industry of India issued an announcement stating: "In response to the application of the Indian Automobile Tire Manufacturers Association, a countervailing investigation was conducted on the truck tires imported from China." Related industry sources believe that India has initiated the launch of Chinese passenger car tires. Anti-subsidy investigations lack legal and factual basis. India launched anti-subsidy investigations on Chinese truck and bus tires. Actually, no investigation was conducted at all, and the invalid materials provided by the United States were directly copied.
On May 8, 2018, the European Union began to impose anti-dumping duties on specific truck and bus tires originating in China. The tentative anti-dumping duties are between 52.85 euros and 82.17 euros per tire and are mainly aimed at new or refurbished truck and bus tires with a carrying index of over 121.
In addition to the United States, the European Union, India and Brazil, Argentina, Colombia and other countries and regions in recent years for China's tire products one after another "anti-dumping" investigation, some countries and regions introduced the relevant trade protection policies. However, these frequently set trade barriers raise higher requirements for China's tire companies to re-plan the trade structure, avoid risks and ensure the competitiveness of their products.
Chinese tires frequently encounter trade barriers overseas. There are many reasons for this:
First of all, with the upgrading of China's manufacturing industry, the competitiveness of tires and other products with stringent requirements for quality and safety continues to increase, and their market share in foreign countries continues to expand, squeezing the markets of domestic manufacturers in importing countries.
Second, the rise of trade union organizations represented by the United States and other forces, these interest groups are not traditional domestic producers, but they have formed a powerful force in election politics and have exerted great pressure on the executive authorities to “bread "On the grounds of requiring exclusion of foreign imports;
Third, global economic integration is accelerating, and economic factors flow rapidly, thereby increasing efficiency and reducing costs. At the same time, trade protectionism is also an easily-transmitted tumor. After a country takes action, it may lead another country to be vigilant and even take preventive measures. The protection measures, in this case, whether the imported products do exist dumping or subsidies, whether the domestic industry in the importing country has suffered serious damage, and has become a secondary issue.
The frequent adoption of trade remedy measures by the United States has caused many difficulties for the operation of Chinese tire companies. In particular, since 2014, under the pressure of the “double reverse†in the United States, China’s tire exports have fallen severely and fell into a downturn in 2015, which has so far failed to eliminate the impact. When the tariff exceeds 10%, tire companies basically have no profit margins, especially mid-to-low tires. The United States imposes more than 10% of punitive tariffs on all Chinese car and light truck tire companies, largely reducing the competitiveness of Chinese tires in the United States, and blocking some Chinese tire companies.
Due to the heightened foreign trade barriers, the increase in domestic environmental standards, the increase in labor costs, and the economic downturn, some companies have reduced their production lines, and some tire companies with poor management and management have been eliminated from the internal and external environment, even once. Ranked as one of the top tire companies in the world's top 75 tires list in 2014, De Ruibao was unable to escape the "death and death" and it fell in Shandong in 2015. In the face of increasingly fierce competition in the industry and barriers to overseas trade barriers, De Ruibao finally overwhelmed and declared bankruptcy in February 2015. At the time of bankruptcy, the tire company had a debt of 4.7 billion yuan.
In addition, other tire companies in Shandong, which mainly export to the US market, have once reduced their production. The overall sales and exports of the tire industry in China have declined. Although the current decline in the current industrial output value and export delivery value of tires has narrowed, the sales revenue, combined tire output value, and profits have shown a slight positive growth compared with last year, but the situation is still not optimistic. From a certain perspective, it also shows that the tire companies are undergoing a major reshuffle.
Compared to the tire export market in the world, the situation in the domestic market was generally stable - tire companies gradually turned their attention to the domestic market.
In order to reduce market risks, more and more tire companies adopt the “two legs at home and abroad†walk model. The rapid development of the Chinese auto market has brought opportunities to local tire companies. However, although China is the world's largest market for the automotive market and automotive tires, the tire market is still dominated by foreign brands. Domestic tire brands are still unable to escape the status of low-cost competition, lagging behind international brands in R&D and manufacturing. Multinational large-scale tire companies rely on strong capital and advanced technology to take absolute advantage in the domestic market for passenger cars and light-duty radial tires. Foreign-funded enterprises account for about 70% of the market share of passenger car tires, and local companies only share about 30%, and Focused on the replacement market, the market share in the supporting market is very low.
At present, both international and domestic markets are still dominated by international tire giants such as Michelin , Bridgestone , Pirelli , Goodyear, Hankook, and Dunlop. These international tire giants are accelerating the layout of the Chinese market. Taking Cooper Tire as an example, since the company entered the Chinese market in 2006, following the establishment of Cooper Tire (Kunshan) Co., Ltd. in China to manufacture Asia Pacific Technology Centers for passenger car tires and Cooper tires, it also established a new company in Qingdao and built a company. new factory. In addition, Cooper tires with more than 3,000 retail outlets in China are accelerating the establishment of experience centers in key cities, as well as embracing Internet e-commerce, enhancing channel capabilities and enhancing consumer experience, and further seizing the Chinese market.
The international tire giants have been accelerating their pace in China, how to eat from their mouths, this problem is placed in front of local tire companies that are stimulating the domestic market. Domestic tire companies have made efforts in products, production, marketing, services, research and development, and Wanli, Sen Qilin and other companies have avoided low-price competition and trade barriers by increasing product added value and brand power.
In the face of increasing trade frictions and a drastic fluctuation of the RMB exchange rate, tire companies should base themselves on the Chinese domestic market, taking into account foreign markets, and also be branded and value-added products.
In addition to increasing efforts to expand domestic sales, some of the powerful Chinese tire companies are “going out†to set up factories overseas and bypass the high punitive tariffs in the United States. This has become another way for enterprises to respond to international trade barriers. .
Some tire companies in China started to adopt two internal and external strategies
Taking exquisite tires with walking on both legs at home and abroad, the export sales revenue accounted for more than 50% of the main business income. Its overseas markets are mainly concentrated in the United States, the European Union and other countries and regions. Linglong Tire has implemented an internationalization strategy in advance. In 2013, it launched the construction of the exquisite Thai project with a total investment of 689 million U.S. dollars. After completion, it will add 12 million sets of semi-steel radial tires and 1.2 million sets of all-steel radial tires. In 2015, Delicatessen Thailand began mass sales to the United States. In 2015, it accumulated sales revenue to the US market of 1.134 billion yuan, an increase of approximately 100 million yuan over 2014. The tires supplied by Thailand to the United States are not affected by the United States' "double reverse" impact on China's tire manufacturers, effectively eliminating the impact of the United States' "double reverse" on the US market for Delonix tires. When China's tire exports were in the doldrums, Linglong Tire took advantage of the exquisite factory in Thailand and crossed the trade “fence walls†in the US and other overseas markets, realizing that foreign markets grew faster than the domestic market.
Thailand is the world's leading producer of natural rubber. It has multiple advantages for the supply of raw materials, prices, and logistics for tire companies. After Linglong Tire, Mori Kirin Tire also established 10 million passenger tire plant projects in Thailand. According to the person in charge of Mori Kirin's tires, Sen Yulin’s domestic factories are currently supplying non-US overseas markets and domestic sales. As the largest overseas market of Sen Qilin, the United States accounts for 30% of Sen Qilin’s total sales. Since the US’s “double reactionâ€, orders for Sen Lin’s exports to the United States are basically completed by Thai factories, effectively avoiding US-made tires from China. High tariffs are imposed.
In order to avoid trade barriers and have better development opportunities in the international market, Triangle Tire has set up factories in the United States to advance the global strategic layout.
The growing friction in international trade, companies must have a strategic vision, thinking about how to ensure their products in the global market competitiveness. There are various ways to deal with trade frictions, and companies “going out†as well as re-planning through trade structures and overseas mergers and acquisitions are also effective ways of avoiding. Of course, this is a complicated process involving laws, regulations and practices in many countries. Therefore, it needs to be carefully studied and carefully promoted.
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