The export of diversified tire special protection case has a negative impact

On September 5, 2011, the World Trade Organization Appellate Body issued a ruling on the Sino-U.S. tire trade dispute case, and determined that the United States imposed a punitive tariff on Chinese-origin tires in line with WTO rules. On the second day of the verdict, September 6, the person in charge of the Treaty and Law Division of the Ministry of Commerce stated that China will urge the US to terminate its special safeguard measures as soon as possible to ensure a fair competition environment for Chinese companies. Cai Weimin, secretary general of the Rubber Industry Association’s tire branch, publicly stated that China should take further measures against the WTO’s unfair verdict. “The China Rubber Industry Association has begun to prepare relevant materials.”

On January 19, 2010, at the request of China, the WTO established an expert group on dispute resolution mechanisms; and on December 13, the ruling issued a ruling that the U.S. measures did not violate WTO regulations. In 2011, China again tried to submit an appeal report to the WTO. However, the final review report of September 5th maintained the judgment of the dispute resolution mechanism expert group and continued to determine that the United States’ practice was in compliance. This also means that China has come to an end through international multilateral legal mechanisms to seek solutions to the Sino-U.S. tire disputes and protect the interests of Chinese companies. Zhou Shiyi, a senior researcher at the Center for Sino-US Relations at Tsinghua University, believes that the ruling is "unreasonable" and "unfair." First of all, China's tire sales to the United States and the United States are not the same type of production of tires, "well water is not guilty of river water"; the same time, the United States tire sales fell mainly because of new car sales in the United States, not because of Chinese exports to the United States tires.

According to the data from the Chinese delegation to the WTO, Chinese tire sales to the United States fell by 23.6% year-on-year in 2010, and continued to decline by 6% in the first half of 2011. However, in the same period, the number of imported tires in the United States rose instead of increasing, and the number of tires imported from the United States increased by 20.2% in 2010. , rose 9% in the first half of 2011. According to estimates by the Rubber Association, 40% of tires produced in China are exported, and one third of them are exported to the United States. If the maximum tariff of up to 55% is levied, this means that China's tire products will not be exported to the United States. This will affect the employment of about 100,000 workers and lose about 1 billion US dollars worth of exports. What is worrying is whether the United States has follow-up measures following the special safeguard case. Wang Wei, deputy dean of the School of International Business at Shandong University of Finance and Economics, believes that Obama faces re-election, and the success of the tire special security case is of great significance as an Obama's "economic card." This is, after all, the economic policy he initiated at the beginning of his term of office. In order to win the election, Obama is likely to bring similar anti-dumping and anti-subsidy lawsuits.

In September 2009, the United States announced the implementation of a three-year punitive tariff on imported cars and light truck tires from China, that is, on the basis of 4% of the original taxes and fees, 35% will be imposed in each of the three years. At the beginning of the high tariff collection, Chinese tire companies and upstream rubber production companies were in a hurry and they were looking for complaints from industry associations for policy support. At present, the tire special protection case has been implemented for two years. By September 26, 2011, the tariff will be reduced from 35% to 25%, and only one year will remain. The WTO ruling has not affected the industry as much as it began. At the same time, after two years of transitional tire special protection measures in the United States, China's tire manufacturing enterprises have not changed their export-led situation, but they no longer rely too much on the US market, and exports from Europe, Southeast Asia, the Middle East, etc. The proportion continues to increase.

Experts pointed out to reporters that due to the fact that the United States has implemented transitional special safeguard measures for tires originating in China for many years, its impact on China-related tire manufacturing enterprises has already occurred. Currently, domestic tire companies are working to open up markets in Europe and Latin America. The tire loss in China is only the confidence of domestic companies in exporting tires to the United States and their future development plans. The impact on the domestic tire industry is not significant, and it will not impact the current Chinese tire exports. According to the data from the China Rubber Industry Association, 400 key member companies completed the current gross industrial output value of 144.9 billion yuan in the first half of 2011, a year-on-year increase of 21%; the sales revenue was 144.2 billion yuan, an increase of 19% year-on-year; and the export delivery value was 40.6 billion yuan Yuan, a year-on-year increase of 33%. In the first half of the year, the industry’s profits and taxes increased by 0.88% year-on-year, and profits decreased by 1.8% year-on-year; 54 of the 324 key companies suffered losses and the loss was 16%; the loss was 440 million yuan. At present, China's tire export market has shown a diversified pattern, in which the number of tires exported to Europe, Latin America and other regions is increasing in the total number of tire exports. In addition to exploring new overseas markets, Chinese tire companies have also adopted measures such as technology upgrades and product quality enhancements to increase their overall competitiveness. After the tire safety case in China lost, China's tire companies will not have any illusions about resuming exports to the United States before the end of the tire special security case, and will concentrate on continuing to open up new markets in the future.

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