Chinese tires how to deal with "double reverse" investigation

Jan 05,2019

Over the years, China's tire products were frequently anti-dumping investigations, coupled with domestic environmental protection and other factors, tire exports have been under greater pressure.

Among them, the United States is the most important anti-dumping investigation initiator.

In January 2015, the United States of China passenger car and light truck tires to start "double reverse" investigation.

Three years later, the U.S. Department of Commerce released the investigation of the first administrative review of the final ruling, that China's exports to the U.S. tires there are dumping and subsidies.

The final anti-dumping duty rate, between 1.50%-76.46%.

In addition to passenger car and light truck tires, truck and bus tires were not spared.

In January 2017, the U.S. Department of Commerce issued final anti-dumping and countervailing rulings on them.

Among them, the anti-dumping duty rate was 9% and 22.57%, and the countervailing duty rate was 38.61%-65.46%.

In the same year, on February 22, because the U.S. International Trade Commission found that Chinese imports did not materially affect the relevant industries within the U.S., the case was closed.

Similarly, affected, were off-highway tires, which, in April 2017, were found by the U.S. Department of Commerce to have anti-dumping practices.

The anti-dumping duty rates, ranged from 33.08% to 105.31%.

China's tire exports to the U.S. have decreased significantly due to the impact of the U.S. launching multiple anti-dumping investigations into Chinese tire products.

In addition, in recent years, Turkey has continuously launched multiple anti-dumping investigations against rubber tires, agricultural machinery tires and other products originating from China.

In 2018, India also launched an anti-subsidy investigation into rubber-made newly inflated truck tires from China.

In May of the same year, the European Commission announced the results of the EU's preliminary ruling on the anti-dumping case against China's truck and bus tires.

This has a huge impact on China's tire exports.

According to industry statistics, in 2017, China exported a total of 792,173,794 tons of tire products to the EU, accounting for 14.96% of China's total tire exports that year.

However, the recent increase in exports of Chinese tire manufacturers to Africa, Southeast Asia and other regions, the diversification of the export market to a certain extent defuses the trade risk of tire manufacturers.

How can China's tires to deal with the repeated occurrence of "double reverse investigation", some industry insiders said that this requires two aspects of efforts.

On the one hand, tire companies need to accelerate the cultivation of independent brands, increase investment in research and development, production of high-quality products to enhance export profits.

On the other hand, these enterprises should focus on improving service capabilities, so that the quality of Chinese tire products and services are recognized by the international market.