China's U.S. tires or companies facing ultra-high tariffs defended in the United States

According to the CCTV economic information radio news, a private lobby group consisting of the China Rubber Industry Association and domestic tire manufacturing companies went to the United States on the 3rd. The purpose of their trip was to defend and lodge complaints against the proposal of the United States regarding the recent “addition of high tariffs on Chinese tire products for three consecutive years” and they will also attend the US hearing on August 7 in this case. meeting.

According to the China Rubber Industry Association, nearly 40% of tires produced in China have been exported in the past two years. One-third of them are exported to the U.S. market. The value of exports is close to US$2.2 billion, which only accounts for 17% of the U.S. market consumption, but it is related to The employment problem of more than 100,000 domestic industrial workers. According to the recommendations of the United States International Trade Commission, the U.S. government may start from September this year and impose a maximum of 55% of special protection tariffs on imported tires from China for three consecutive years. The current normal tariff level is about 3%.

Fan Rende, president of the China Rubber Industry Association, said: "If the special security case is set up, it will have a heavy blow to China's tire industry. It can be said that there may be a negative growth for the first time in 30 years of reform and opening up, which is very serious for the industry." problem."

According to reports, China's tires exported to the United States are mainly used in the field of automobile maintenance, while tires produced in the United States are specifically used for automobile production facilities and are in the wrong position. Therefore, Chinese imports do not present any damage to the US industry.

Fan Rende, president of the China Rubber Industry Association, said: "If the United States takes this special safeguard investigation, other countries may also follow suit. This would create a worldwide trade protection melee, so we say we are firmly opposed."

Liu Minan, Vice Chairman of the China Minmetals Chamber of Commerce: "We also call on the Chinese government to firmly oppose this kind of trade protectionism and take measures to negotiate with the U.S. government to resolve this tire special protection case as soon as possible."

The person in charge of the Ministry of Commerce of the People's Republic of China also said today that if the U.S. government disregards the facts and makes an unreasonable ruling that is detrimental to Chinese companies, the Chinese government will submit the case to the World Trade Organization and solve the problem through a legitimate legal mechanism.

According to a report by the First Financial Daily, “We have already made a full grounds for appeal and firmly oppose the US relief measures!” Yesterday, the 9-member delegation of the China Rubber Industry Association departed from Shanghai to the United States and will attend the US Trade Representative on August 7th. The "US and China Tire Special Protection Case" Hearing held by the Office (hereinafter referred to as USTR).

Prior to departure, Cai Weimin, secretary general of the tire division of the leader, made the above statement to CBN.

On June 29, the US International Trade Commission (ITC) ruled that China’s tire exports had damaged American industries and demanded that special tariffs be increased by 55%, 45%, and 35% respectively within three years. This is also the first case of the trade “special protection” initiated by the Obama administration after it took office.

At present, the average tariff on China’s tire exports to the United States is only about 3.5%. Shen Weijia, an executive director of the company’s representative company, Jiatong Tire (China) Investment Co., Ltd., said in an interview with CBN yesterday that “If the US implements the above relief measures, it The industry will be a devastating blow. The imposition of such a high special tax is equivalent to closing the door for Chinese tyres."

There is no direct competition

According to the relevant procedures in the United States, after the ITC has made a ruling, the case will enter the USTR level and the hearing of the parties’ complaints will end. The USTR will issue a report on the contents of the hearing to President Obama, which will be finally ruled by the President.

"Therefore, after entering the hearing process, it is also a critical period of the case." One of the respondent members, Minmetals Chamber of Commerce officials expressed to CBN. He also revealed that in the Chinese respondent team, both the association and the company's representatives have hired lawyers in the United States to do relevant work.

At the hearing on August 7, representatives of various interests in China and the United States will elaborate in person.

"First of all, we have to refute that there is no direct competitive relationship between China's tire sales to the United States and the U.S. industry," said a complaint submitted to CBN by the China Rubber Industry Association yesterday. Shen Weijia said to CBN yesterday: “The tire market that China exports to the United States is the market that the United States originally gave up. How can it hurt the U.S. industry?”

At present, China's tires occupy the low-end market in the United States and are referred to in the industry as "replacement" tires. American tire giants such as Bridgestone and Michelin have produced high-end “configuration” tires, which are the tires that are installed when the new car leaves the factory.

Shen Weijia said, "configuration" tires are generally ordered by car manufacturers in large quantities, with the sale of new cars, high-quality tires, tire manufacturers also have a certain premium. The Chinese-made tires were replaced after the original tire was scrapped.

“This type of tire profit rate requires low-intensity labor to produce. The Americans have already given up this class of markets.” Shen Weijia said, “For consumers, many Americans don’t necessarily buy the second tire. Michelin, they have the right to choose inexpensive Chinese goods. If they limit Chinese goods, US consumers will also raise objections."

Another reason why China can appeal is that China’s export tires to the United States were down from January to May 2009. An official from the Bureau of Fair Trade of the Ministry of Commerce explained to CBN yesterday that the “special protection” clause in the WTO requires that exports be suddenly increased within a short period of time.

“This is a rapid growth!” said the official, but China’s exports of tires to the United States have declined over the past six months. According to the latest statistics provided by the Fair Trade Bureau yesterday, from January to May 2009, China exported US tires to US$724 million, a decrease of 18.3% year-on-year. This alone violated the WTO rules that initiated the “special protection”.


Multi-Benefit Game American Views

In the whole process of the case, it is more interesting that the US industry collectively silenced this. "ITC's ruling that China's tires damage the U.S. industry, but the U.S. industry itself has nothing to support the voice." Shen Weijia said.

After the incident, several major tire giants in the United States merely issued public rhetoric on the matter, demanding that the US government "fairly and impartially adjudicate," or "not suitable for comment."

Zhou Shizhen, a senior researcher at the Sino-U.S. Relations Research Center at Tsinghua University, analyzed the CBN yesterday. In fact, the “special insurance” applicant is a U.S. trade union organization. The U.S. economy is sluggish and domestic unemployment is spreading, so this case will be revealed. come out.

The application filed by the United Steel Workers Union of the United States is based on the assumption that six consumer tire factories have closed since 2004, and nearly 7,000 American tire workers have been affected. The organization represents the interests of approximately 15,000 tire workers in 13 factories.

Entering the end of the hearing in late July, dealers and auto makers in related industries began to issue public statements expressing their opposition to restricting Chinese tire imports. Because Chinese tires already have a large sales group in the United States, the employment problem of these people is as acute.

On July 27, the U.S. Automobile Trade Policy Council, which represents the interests of the three major US auto giants, Chrysler, Ford and General Motors, pointed out that if the U.S. restricts the import of Chinese-origin tires, U.S. car manufacturers will expend considerable resources to seek alternative sources of tires. Will involve a lot of investment in mechanical equipment.

On the same day, the U.S. Retail Leaders Association sent a letter to U.S. Trade Representative Kirk, claiming that restrictions on Chinese exports to U.S. tires are not in the U.S. public interest, and that protecting the interests of a single industry or its workers will give U.S. public safety and consumption in difficult times. Cause damage.

The above-mentioned voices including the interests of the Chinese and U.S. parties will eventually be summed up at Obama's desk. September 17 is the day when Obama made a ruling. In the Bush era, China had once rejected four special safeguard clauses in Sino-U.S. trade.

"But the new government Obama's attitude toward special security is not clear enough." Yesterday, an official from the Fair Trade Bureau of the Ministry of Commerce told CBN.

Zhou Shiyi believes that the Republican-born Bush represents corporate interests more. As the Democratic Party’s Obama campaign, it leverages the strength of American trade unions. Coupled with the current high pressure of domestic workers’ employment pressure, this is an important factor that has to contain Obama’s ruling.

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