China's tire products knock on the door to the European Union is not easy


Data show that in the first quarter of this year, China’s tire exports to the EU surpassed the United States for the first time. The US’s “double reverse” case against Chinese tires shows that the US market’s door for Chinese tire exports is getting tighter and tighter. So, can China's tires further develop the EU market in the future and promote its gradual replacement of the US market?


The volume of exports to the European Union surpassed that of the United States. "Actually, the "double reversal" implemented by the United States since last year has led to a change in the market share of European and American tire exports in China," an expert from the tire branch of the China Rubber Industry Association told reporters.

According to China's customs statistics, in the first half of this year, Chinese tire manufacturers’ exports to the EU surpassed the United States, reaching 48.7 million, an increase of 7.7% year-on-year. It is reported that due to the risk of trade barriers in the U.S. market, many Chinese tire companies have gradually turned certain businesses to the EU.

The European Tyre and Rubber Manufacturers Association (ETRMA) has conducted an investigation and found that since 2013, the European Union, which has been the net exporter of tires, has steadily increased its tire imports. Some people speculated that this may be related to China’s increase in tire exports to the EU.

The reporter learned that domestic tire companies are accelerating the pace of expansion in other markets in order to shift excess production capacity in the US market. In addition to the EU, the second largest market for tire exports, emerging countries and regions such as Southeast Asia, the Middle East, and South America are becoming new markets competed for by Chinese companies.

However, the people concerned are not very optimistic about the internationalization of Chinese tire companies. A business person who has engaged in foreign trade for many years told reporters that from the current trend of international trade, not only has the U.S. trade barriers imposed on China more and more, but other countries have also gradually strengthened anti-dumping efforts on Chinese tire products. In the future, if we still rely on price advantage to participate in international competition just like in the past, Chinese tires will encounter the same problems in the other markets as the US market.

The general view of people in the industry is that while Chinese tire companies are adjusting their market structure, they should pay more attention to adjusting their product mix.

European and American markets have different characteristics <br> <br> the EU car market grew rapidly in recent years, many companies tend to tire of excess production capacity is transferred to the EU market. However, industry insiders mentioned above have warned that the transfer of Chinese tires to the EU market will not be as easy as some people think. On the one hand, the EU, like the US market, is a mature market with stringent regulations; in addition, this market also has some characteristics that are different from the US market.

According to analysis, the most difficult threshold for China's tire companies to enter the European Union is the European Union’s tire labeling method. It strictly regulates the fuel efficiency, rolling noise, and wetland grip level of tire products sold in the European Union, and implements technical trends every year. Monitoring, many Chinese tire companies' products are still difficult to meet relevant requirements.

The reporter was informed that the characteristics of the EU market are different from those of the United States.

The United States is the world’s largest auto market. However, there are only two major tire manufacturers in the country, namely Goodyear and Cooper. Its tire production capacity is far from meeting market demand. This is where tire companies in other countries build and import products. All offer great opportunities. China's tire rubber products entered this market earlier. After many years of expansion and cultivation, this has laid a good foundation for this.

The EU is still a net exporter of tires. There is a big gap between its output and sales. Take passenger car tires as an example. The annual output of EU tire companies in Europe amounts to 300 million, but the annual sales of tires for use on the local market is only 263 million. This is an increase of nearly 40 million, and it needs to be exported. other areas. Chinese tire companies now have to enter such a market. The degree of competition can be imagined, and it needs a long way to go.

In addition, the United States is a unified country. Although its states, laws, regulations, and cultures are different, they are easy to coordinate and communicate. The EU is composed of many countries. Although the economy has basically achieved unity, in reality, various countries have great differences in political systems, laws and regulations, and culture. For Chinese tires to be exported here, they have to adopt different strategies for different countries and regions to adapt to different laws and regulations and cultural habits. The cost and effort that this gives are not comparable to the United States.

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