The August 25th newspaper was informed that on September 2, the US Trade Representative Office will announce the ruling on the tire special security case.
According to legal procedures, Obama can choose to announce his final decision on this case on any day of September 3-17.
With the advent of the verdict on the tire special security case, Chinese tire companies are always watching the developments and waiting for the final result.
On August 25th, our reporter called S.G.T., and the office staff of the company’s secretary-general stated that the company has also been paying close attention to the development of the tire special security case. Before the final result did not come out, the company responded accordingly. .
If you want to impose special tariffs
S-Gatton will adjust its export structure
In April this year, the United Steel Workers Union of the United States filed a trade lawsuit against Chinese tire manufacturers under article 421 of the U.S. Trade Law, stating that Chinese enterprises’ unfair competition has achieved a dramatic increase in exports of U.S. car and truck tires for 4 years, resulting in U.S. workers Unemployed. In the indictment, the Steel Workers Union demanded that the number of passenger tires imported from China be reduced by more than half.
On June 18th, the United States International Trade Commission made an affirmative damages ruling on the above-mentioned special case of Chinese passenger car and light truck tires. At the same time, the Brazilian Foreign Trade Commission decided to impose anti-dumping duties on passenger cars and truck tires imported from China. In the future, it may impose anti-dumping duties on light-duty tires imported from China. In the past six months, Brazil has imposed a “temporary†anti-dumping tariff of US$1.33 per kilogram on Chinese-made 20, 22, and 22.5-inch passenger and truck tires. The decision made on the 18th formalized this anti-dumping tax and was valid for 5 years. According to Chinese manufacturing companies, the anti-dumping tax is divided into three levels of $1.12, $1.42, and $2.59 per kilogram.
Associate Securities Analyst Yao Hongguang said: "The United States and Brazil made a similar ruling, the domestic tire companies will be affected by varying degrees, but those companies with relatively large export volume are also relatively affected."
The company with the largest proportion of tire exports is S.G.T., and its directorate official said that after the results of the verdict on the special security case of the tire come out, if the export product is really subject to special tariffs, then the company will adjust the structure of the export product. Not all products are subject to special tariffs, and companies will consider exporting products without special tariffs.
Tyre special security case adjudicated
S-Gatton moves to other markets
China is a tire-producing and exporting country. In 2008, tire production reached 350 million, of which 40% were exported and about one-third were exported to the United States. Affected by the financial turmoil, the volume of exports fell significantly in the first half of this year. It is highly likely that the first negative growth since the reform and opening up will occur throughout the year. Industry sources pointed out that in this situation, the implementation of relief measures will trigger more industries to seek protection, which will bring unprecedented difficulties to the export of tires and other products.
Fan Rende, president of the China Rubber Industry Association, said that due to the financial crisis, China's tire exports have fallen by a large margin in the first half of this year, with declines ranging from 26% to 29% from January to April, and around 16% from May to June. If the relief measures are recommended by the U.S. side, China will lose its tires to the United States. At the same time, it will also affect the survival and development of the domestic tire industry and related upstream and downstream industries, or affect the employment of about 100,000 workers. At the same time, the United States tire manufacturers use preferential policies to set up factories in China to occupy the Chinese tire market, and the other in the face of China's tires to the United States for special protection, which is clearly a manifestation of trade protectionism.
According to the 2008 annual report of the relevant listed tire company, the largest proportion of export revenue to main business income is S-Gatto, which is 69.19%; this value of Aeolus shares is 34.19%; this value of Qingdao Double-Star is 24.25%. The proportion of tire A is the smallest, which is approximately 18.95%. However, it is worth noting that the above-mentioned export revenue is all annual export revenue of the company. The impact on the company should be judged based on the actual export country of the company.
According to an insider from S.Getter, “The proportion of the company's product exports is not based on the U.S. but varies from time to time. The company’s exporting countries include Europe, the U.S., and other countries. If the tire security case ruling is unfavorable to the company, then The company will consider market adjustments in exporting countries. Of course, the company will also open up new markets."
People in the industry believe that we should not only protest, but also need to find out from the roots the countermeasures of opening up the market, and truly realize the transition from relying on price to winning the market by relying on product quality.
A person from the China Tire Industry Association stated that although China's tire exports now account for more than 35% of the total output, it is mostly low value-added products.
U.S. may use "eclectic plan"
Yao Jian, the spokesperson of the Ministry of Commerce, also expressed his attitude toward the issue of whether to take trade retaliatory measures. He said: “First of all, we must actively discuss with the countries concerned. We also believe that important world economies will adopt appropriate Measures, restraints and restrictions on the use of trade remedy measures, we do not want to see the next trade war. Now many experts put forward a list of trade retaliation, I think the Ministry of Commerce will also evaluate the experts' recommendations, of course, the most important Still, we need to look at the domestic and international markets because the trade war cannot revitalize the economy, and excessive trade remedy measures not only hurt the other party, but also hurt domestic consumers or the corresponding companies."
The senior consultant of the Chinese tire enterprise delegation in the United States publicly stated: “The key to victory and defeat first depends on the game between the US tire manufacturing industry and the trade retail industry. According to calculations, once the Chinese tires levy a special tariff of 55%, Sino-US tire trade may not With the re-existence, the 100,000 jobs in related positions will not be guaranteed, and more importantly, the mid-tier consumers in the United States have become a fixed customer group for Chinese tires, and if they want to re-select high-priced tire products, given the current economic situation, it is decided. Obviously there is no public support."
He said that the chances of winning the Chinese company's business will increase a bit more than previously expected. It is expected that the U.S. government will eventually balance the opinions of the two parties and use the "eclectic" plan. At present, the US tariff on Chinese tire imports is 4.4%. After ITC ruled that the special tariff was 55%, the U.S. government may take a balance between these two ends. For example, the United States may estimate that Chinese companies can accept 10% to 15% of the tariff. Chinese enterprises must make every effort to gain favorable chips and obtain a "trade-off plan" that is beneficial to China.
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