On September 11, U.S. President Barack Obama decided to impose punitive tariffs on tires imported from China, that is, impose additional duties of 35%, 30% and 25% on the basis of the original tariff of 4% for the next three years respectively. . This special safeguard will take effect on September 26th.
On September 13, the Ministry of Commerce of the People's Republic of China made a decision to launch an anti-dumping and anti-subsidy case filing review procedure for some US imported car products and broiler chicken products. Zhou Shiyi, a senior researcher at Tsinghua University, analyzed that the countermeasures involved more than US$2 billion in sales, which is about the same as the Chinese tire case.
Judging from the current situation, in addition to the possible impact on the tire industry and the terminal market in China, special tire protection cases may also create price wars in the market terminals.
May lead to terminal price war
Dong Wenfang, manager of the Zhujiang Tire Market Department, said in an interview with reporters that passenger car tires are not covered by the special security case and therefore have no impact on manufacturers of passenger car tires. However, for some truck and commercial vehicle tire manufacturers with large export volume, they will inevitably be greatly affected. Looking into the possible market changes in the future, due to the narrowing of the US market, which accounts for a large share of the world's tires, the tire market outside the US market will become a must for many manufacturers. The bloody battle between domestic tire companies and their brothers is inevitable. . What is even worse is that Other countries may also imitate the same barriers set by the United States. The situation in the future is not optimistic.
Experts predict that if the tire security protection case is not properly resolved, the market will be chaotic in the second half of the year, and a new round of tire price reduction may be staged. By then, disorderly market competition will permeate in the smoke of price war. It is understood that for companies such as Pearl River Tire, which mainly produce tires for passenger cars, it will not be directly affected by the special security case, but for Jiatong, Chaoyang, Wanli and Aeolus Tires, due to the large volume of exports in peacetime, The dependence on the market is high, so the impact is straightforward.
According to reports, the person in charge of the tire production company Linglong Group stated that at present, the export volume of Linglong Group accounts for nearly 40% of the total sales, and the US market accounts for about 15% of its export share. The special security case will undoubtedly cause a squeeze on the share of the US market for export, and the Delicate Group will digest it by expanding other markets. Also affected by the tire security plan is Jiatong. The company’s Fujian-based Jiatong Tire Co., Ltd. sold passenger and light truck tires to the US market in 2008, accounting for approximately 1/4 of its annual sales revenue. Sub-tire special protection measures are expected to have an adverse impact on the company's future sales in the US market. The specific impact amount cannot be accurately estimated at present.
According to an authoritative source, if the U.S. measures described above are implemented, then China’s tire exports to the U.S. will lose nearly half, reaching about US$1.1 billion. At the same time, it will also affect the survival and development of the domestic tires, rubber and other industries and related upstream and downstream industries, making the number of unemployed in these industries increase to more than 100,000.
This incident can be described as a warning that companies must overcome short-term behavior and establish the concept of success or failure in strategic decisions. From the government level, it is necessary to establish a long-term mechanism for economic development and adapt it accordingly, establish effective internal and external coordination mechanisms (including the establishment of intelligence and early-warning mechanisms), and conduct investigations and assessments on major economic issues in advance. From the perspective of enterprises, we must balance short-term and long-term interests, speed up technological innovation and personnel training, seize the commanding heights for future development, and avoid completely sticking to immediate interests.
The loss of the United States is inevitable
On September 14, the Ministry of Commerce and the Ministry of Industry and Information Technology held a joint briefing in Beijing. The Chinese side adopted special safeguard measures on the US decision to transfer US tires to China on the 11th, and requested that the US consult with the US under the WTO dispute settlement mechanism. Some experts pointed out that the tire protection project not only has an impact on the relevant upstream and downstream industries in China, but also has a huge impact on related industries in the United States.
David Pan, CEO of SIS Tire Manufacturing Group in the United States, said: "This decision will bring losses to the entire US tire dealers. Most dealers have united to oppose this decision. The US Tire Industry Association has expressed strong opposition, some large-scale Tire distributors and retailers also spontaneously opposed this decision."
It is reported that at present, China exports more than 200 agents and more than 43,000 retail stores in the United States, creating 100,000 jobs for Americans. Once the United States closes the door of China's export of tires, these 100,000 employees will also be unable to avoid the fate of unemployment.
The US Tire Free Trade Association estimates that the United States will lose another 25 jobs each time the special safeguard case is established to protect one job. At the same time, US consumers spend an additional 600 million to 700 million yuan each year for this purpose. Obviously, the special tire protection measures implemented by the United States are not a wishful thinking. In addition, if China initiates anti-dumping and anti-subsidy procedures for some US imported auto products, it will undoubtedly also have a heavy blow to the auto export industry in the United States that has only slightly improved. As we all know, China is currently the world's largest sales market for all types of automobiles.
Although trade protectionism has been shouted by all the rats in the street, in recent years, protectionist sentiment has become more intense. On November 15, 2008, leaders of the G20 countries, including the United States, Japan, and the European Union, pledged that no protectionist measures will be implemented for at least 12 months. The common statements of these leaders were not inked and many countries took this commitment. After the head. According to statistics, since October last year, China has encountered 69 trade remedy investigations, involving a total amount of US$9.156 billion.
View related topics: China and the United States tire special security case
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