The United States tire "special protection case" has caused heavy losses in China's tire exports. On January 26th, a reporter from the China Morning Paper Co., Ltd. learned from the China Rubber Industry Association that the tire exports from China have fallen by 70% to 80% before the “special protection case†occurred. It is reported that at present some domestic tire companies are reducing losses caused by reducing exports through the expansion of domestic demand.
Xu Wenying, deputy secretary-general of the Rubber Industry Association, told the Morning Post reporter yesterday that the WTO has now begun to investigate the United States' tariff increase on Chinese imports of tires to the United States. However, the WTO panel normally takes at least six months to make a ruling. It takes two and a half years to make a final ruling.
In September 2009, President Barack Obama approved the addition of 35%, 25% and 20% punitive tariffs on Chinese tires imported into the United States on the basis of a conventional tariff of 4% for the next three years. This also means that even if the WTO finalizes China’s victory, the American tire special insurance time has expired.
Xu Wenying told reporters that at present, China’s tire export volume has dropped by 70% to 80% before the “special protection caseâ€, and most companies are difficult to export. However, she did not disclose the specific figures.
According to statistics from the Jiangsu Inspection and Quarantine Bureau, in 2009, a total of 25,221 batches of tires were exported to Jiangsu, with a total of 68.48 million US dollars, amounting to US$1.16578 billion, a 9.9% year-on-year decrease, a decrease of 25.2%, and a decrease of 22.8%. Jiangsu's tire exports ranked second in the country, accounting for about a quarter of the country's total exports of tires. Statistics from Guangzhou Customs show that in 2009, Guangdong exported 39.051 million new tires, a decrease of 16.3% over the same period of last year.
The import and export monitoring and early warning announced by the General Administration of Customs on January 14 showed that from January to November 2009, China had exported 270 million tires worth US$6.9 billion, which was 7.4% and 8.5% lower than the same period of last year. In particular, since September last year, the export volume of tires to the United States in October and November has been significantly reduced, with a year-on-year decrease of 37.5% and 35.5%, respectively.
From January to November 2009, China exported 16.163 million tires and 49.95 million tires to the United States and the European Union, respectively, down 15.7% and 4.9% respectively.
What is worrying is that the “special protection case†of American tires has a contagion effect. Since the United States "special security case", more than 10 countries have submitted anti-dumping and countervailing investigations to China's tire export enterprises. In early January 2010, the Anti-Dumping Agency of the Ministry of Commerce and Industry of India made a final ruling on China's tire export enterprises, imposing anti-dumping duties ranging from 24.97% to 88.27%.
Xu Wenying told reporters that in order to help tire companies tide over the difficulties, the country has lowered the standard for the amount of taxes on natural rubber imports from 2010. For example, if the tax standard for tobacco film is adjusted from 2,600 yuan/ton to 1,600 yuan, / Ton, the technical classification of natural rubber from 2,600 yuan / ton adjusted to 2,000 yuan / ton, to a certain extent, reduce the cost of domestic plastic companies to import.
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