Can China's tire industry be more difficult to develop?

China's tire industry has successively been investigated by the "double anti-dumping" (anti-dumping and countervailing) investigations initiated by more than 10 countries including Australia, Brazil, Peru, Egypt, Argentina, Turkey, South Africa, Mexico, India and the United States.

On September 11, 2009, U.S. President Barack Obama decided to impose restrictions on tariffs on passenger car tires and light truck tires that China exports to the United States for a period of three years: 35% in the first year and 30% in the second year. In the third year, a 25% tariff will be imposed. This is the United States tire "shock protection" that shocked the world.

China’s export of “typhoon” tyres to the United States once fell by more than 60%. Therefore, Chinese companies that export tires to the U.S. market continue to lose money.

After the “special protection case”, the tariffs on Chinese tires exported to the United States in 2012 and 2013 were only about 5%.

The pain of the “special security case” imposed on the Chinese tire industry has not yet been exhausted, and the United States has again raised the “double reverse” stick to the Chinese tire industry. 50% of tires in the US market come from imports. China's tires exported to the United States account for one-third of China’s total tire exports.

The Chinese tire industry is dependent on the US market. Relevant experts estimate that “The US’s “double reversal” may impose a 60% tariff on China’s passenger car tires and light truck tires that are exported to the United States, and this is likely to be a lasting one. This will cause heavy exports to the Chinese tire industry. Strike."

The United States' "double opposition" has a "demonstration" effect. Countries such as the European Union, Japan, India, and Australia are likely to imitate the United States and form a "double reaction" chain reaction. For example, on September 10, 2014, the Russian-Kazakh customs union followed suit in the United States and conducted anti-dumping investigations on imported trucks, buses, trolleybuses, and trailer tires. The amount involved amounted to 400 million U.S. dollars. This is a bad signal.

China's auto tire industry is doomed to many disasters. Borrowing from the old training of "difficult to rejuvenate the state," it is difficult to be able to develop "tires." This “tyre” naturally refers to the Chinese tire industry.

Many disasters and difficulties will inspire the Chinese tire industry to work harder, overcome difficulties and become stronger under certain conditions.

More and more companies in China's auto tire industry will start a new world under the US “double reverse” pressure.

Some tire companies have begun to build factories in countries and regions that are not subject to "double reverse". Since the occurrence of the "China-US Tire Special Protection Case" in 2009, Chinese tire industry has started to transfer production capacity to Southeast Asia and other regions.

After the United States launched the "Double Anti" investigation, the number of tire orders from the United States continued to decrease. Some Chinese tire companies have already given up the US tire market, and they are trying again. Shandong Yongsheng Rubber Group Co., Ltd. took the initiative to formally withdraw from the US “double reverse” mandatory response on October 7, 2014. Later, it also voluntarily suspended the export of tires to the US market. It is very likely that the modern version of the Zhuangshi broken wrist.

Under the pressure of foreign “double reverse”, it will be inevitable for China’s auto tire industry chain to reshuffle. Those tire companies that gradually shift their focus to the development and production of high-tech and high-value-added products will undoubtedly gain more opportunities for growth and expansion.

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