Tire Exports or Deteriorating Diversification in 2010 Reduce Trade Friction

According to Guangzhou Customs statistics, Guangdong exported 39.051 million new tires in 2009, a decrease of 16.3% over the same period of last year. In December, exports hit a record high in the year. However, under the influence of the United States “special protection case”, in 2010, countries such as India, Brazil, and Argentina carried out anti-dumping investigations on automobile tires originating in China, and China’s tire exports faced new obstacles.

Guangdong's exports of tires to the United States declined

The data show that since the US “special protection case” in September, the volume of exports in October has sharply declined to the lowest level of 2.493 million during the year, but exports have started to recover month after month in November and have continued to grow for the second consecutive month.

Affected by the “special security case”, major markets such as the United States and the European Union have shrunk, and Hong Kong’s exports have grown against the trend.

Deterioration of tire export environment

Customs analysis, the United States tire "special protection case" has a contagion effect. Since the United States "special security case", more than ten countries have submitted anti-dumping and anti-subsidy 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%.

Up to now, countries such as India, Brazil, and Argentina have stated that they will refer to the U.S. practice and carry out anti-dumping investigations on car tires originating in China. China's auto tire product exports will face new obstacles, and other countries will follow suit. China's tire export environment has further deteriorated.

Diversification reduces international trade friction

There is a high degree of concentration in the tire export market. China's tire production is 40% for export, while exports to the US single market reach 30% of total exports, and the highly concentrated market pattern has a relatively high potential risk. Once the U.S. export market meets resistance and the sudden increase in market trade barriers, export products cannot be fully released in the domestic market within a short period of time, and China's tire industry will face a 10% to 15% overcapacity dilemma.

The customs encourages enterprises to actively defend their rights under the relevant rules of the WTO to protect the interests of the domestic tire industry; accelerate the optimization and upgrading of the tire industry, optimize the export structure, and enhance international competitiveness; vigorously strengthen the development of emerging markets and encourage enterprises to implement diversified business strategies. Reduce the risk of international trade frictions.

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