[News Brief] The concern raised by the Sino-U.S. Tyre "special protection (also known as special safeguard measures)" case involving USD 2.2 billion in trade is continuing to heat up. The dramatic scene is that after the US Steel Workers Association (USW) first asked to restrict imports of Chinese-made tires, the US Tire Industry Association and the US Tire Free Trade Union have come out against “special protectionâ€, the former representing the United States. More than 6,000 small businesses, and the latter is made up of six US tire importers.
However, in accordance with the procedures, the suspense will not be resolved until September 17th. US President Barack Obama will make a final decision on the “special security case†and the US International Trade Commission (ITC)’s previous investigation found that: China’s tire product imports The massive increase threatened its domestic industry, and pointed out in the proposal for relief measures for China and the United States “special protection case†that: based on the current import tariff (3.4%~4.0%), the Chinese passenger car and the light Truck tires are levied with special ad valorem tariffs for 3 years, 55% in the first year, 45% in the second year and 35% in the third year. (Source: Daily Economic News)
The European Union officially made an anti-dumping investigation on China's export aluminum wheels. The prosecutor of this case was the European Wheel Hub Manufacturers Association, which represented the six aluminum wheel manufacturers in the European Union and submitted a complaint to the European Commission on Trade for the initiation of an anti-dumping investigation against the aluminum wheels of the European Union's exports to China. (Source: Sina)
[Comment] This move by the United States and Europe is "the ambition of the drunkards." Tires and wheels are used as sub-industries in the automotive industry. Although not critical to the Chinese auto industry, the nature of the United States is very poor. It shows that in the financial crisis, these developed countries, which have always been flaunted by fair and just market competition, went to the unscrupulous stage and did not follow the rules.
In the 1980s, Chinese tire companies blossomed, and commercial vehicle tires were basically made in China. Perhaps it is a funding issue, perhaps an awareness and a concept issue. Perhaps it is based on balancing the interests of various localities. At that time, the introduction of radial tires projects has been reduced to zero. A million deputy projects are often split into several hundred thousand and twenty. Ten thousand, in a few different places, and one of them is too small to achieve a reasonable economic scale, lack of competitiveness, and the country did not adopt a protection policy, after the foreign tires entered in large quantities, the original Chinese tire companies collapsed. At that time, China's larger tire companies, such as the joint venture with Michelin, were actually "eaten" by Michelin. At present, foreign multinational tire companies have entered the Chinese market in an all-round way, and the domestic tire market has basically been occupied by foreign companies such as Michelin, Princeton, and Hankook.
As far as the automotive industry is concerned, the tire industry is only a supporting industry, and its importance cannot be compared with the entire vehicle. In the whole vehicle industry, especially high-end vehicles, the developed countries have been exporting to China in large numbers. Almost all multinational companies in the world have entered the Chinese market. Most of the Chinese auto market is the brand of a multinational company. Core components such as engines and transmissions were also exported to China by foreign companies. However, China’s export of a small tire and wheel hub was hampered. It was “only the state officials set fire to the lights and the people were not allowed to lightâ€. Too bad.
It needs to tell Europe and the United States that the rules of the world economy are not the ones that make the final say. Chinese companies should indeed respond actively and fight back hard. If the respondent fails, it is entirely possible to perform reciprocal retaliation.
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