The US$1.7 billion Sino-US tire special protection case has caused a great uproar in both China and the United States. It was regarded as the first case of the Sino-US trade friction in the Obama era, and it also made China's tire industry exports fall into the “ice ageâ€. Experts believe that at the current crisis, Chinese companies should work hard to improve their product quality and technology, and completely change China's tires to rely on low prices to seize the market's "international vision."
Due to the impact of the international financial crisis, the development of various industries around the world is full of variables, and the tire industry is not immune. At this time, the Sino-US tire special security case was staged in China's tire industry exports into the "ice age."
Although the Chinese government and relevant industry associations are all actively making efforts to protect the normal export of China's tires, experts believe that at present, Chinese companies should work hard to improve their product quality and technology, and completely change China's tires to rely on low prices to seize The "international vision" of the market.
Export Dilemma and Sino-American Tire Special Protection Case
According to the statistics from the China Rubber Industry Association, China’s tire exports have fallen by a large margin in the first half of this year, with a drop of 26%-29% from January to April, and around 16% from May to June. The export situation is not optimistic.
Affected by the sharp decline in exports, China's tire industry this year, the main economic indicators fell to the double-digit rate, one-third of the company's losses.
House seemingly endless rain. On June 29, the U.S. International Trade Commission (ICT) proposed to impose special tariffs of 55%, 45%, and 35% on the Chinese passenger car and light truck tires for three consecutive years on the ground of Chinese tires disrupting the U.S. market. Waiting for approval by the Obama administration before September. This event was called Sino-American Tire Special Protection.
For a time, the US$1.7 billion case of the China-US tire special protection case set off an uproar in both China and the United States and was also seen as the first case of Sino-US trade friction in the Obama era.
According to industry figures, once the United States decides to impose special tariffs, China’s tire export volume will undoubtedly face another sharp decline. What's more serious is that the U.S. survey on special safeguards will also cause other WTO members to follow suit to curb and restrict the export of tires or other products from China.
The Chinese government firmly opposes the special tariff proposal put forward by the United States International Trade Commission. On July 17, the person in charge of the Fair Trade Bureau of the Ministry of Commerce of the People's Republic of China stated in the ruling on the tire special security case issued by the US International Trade Commission: “The facts are wrongly identified and lack logic, and are not sufficient as the basis for restricting Chinese tires. The Chinese Ministry of Commerce also hopes that the U.S. Trade Representative's Office will propose to the U.S. President decision-making measures.
“The warming of trade protectionism has made the recovery of the world economy difficult. China is the main victim of trade protectionism in this crisis.†The relevant personage of the Chinese Ministry of Commerce believes.
How to make a breakthrough in dilemma
Although the China Rubber Industry Association and major tire companies have protested against trade protectionism in the United States, people in the business community also realized that once the United States decides to impose special tariffs, it will seriously impede the export of China’s tires. At the same time, other countries in the WTO can use the same excuse to keep our products out of the door. The road to exporting tires in China will be extremely difficult.
How to break through and develop in the worsening international trade environment has become a problem that every tire company in China must face.
A related person from the China Rubber Industry Association pointed out: "In protesting against unfair international trade barriers, we should also see the insufficiency of China's tire industry development and adopt coping strategies from the root."
The person thinks that the irrational product structure is a long-term problem in the development of the tire industry in China. Although China's tire export now accounts for more than 35% of the total output, it is mostly low value-added products. Products with high technological content, such as safety, energy saving, and environmental protection, are relatively few. In the domestic tire market, the product structure is also not reasonable.
According to report, currently 70% of the domestic tire market is car tires, and 30% is truck tires. Foreign tire companies mainly produce passenger car tires, while domestic companies mainly produce truck tires, which makes domestic tire market space much smaller than foreign companies. "Therefore, it is imperative to adjust the product structure and transform as soon as possible. Only by satisfying the needs of the market can we achieve development." The source said.
“At the same time, Chinese companies must also increase R&D investment and improve product quality.†The source pointed out that China’s tire companies should create research systems and mechanisms that are conducive to independent innovation as soon as possible, and at the same time strengthen the development of new product development and new materials. We must give full play to the technical strength, scientific research strength, economic strength, and production practice conditions of large companies and large groups, give full play to the role of universities and research institutes, and do a good job of cooperation between production, education and research.
The person emphasized: “Only by upgrading technology, improving technology and producing high-end products can we compete with foreign brands, and at the same time remove the 'hats' of dumped products that have been deducted by developed countries, and avoid trade sanctions from the root.â€
China Investment Advisor Automotive industry analysts believe that China's tire industry should study market dynamics and actively develop marketing networks. At present, the export structure of the tire industry in China is relatively monotonous. Once problems occur in the US market, the company’s losses will be large. At the same time, the integration of China's tire industry is imminent. Tire companies are now small and miscellaneous, and their technical level is generally not high. In the future, they should be grouped and integrated to obtain the strength to compete with joint venture brands.
Reporter's notes
Rely on innovation to win the future
The China-US Tire Special Protection Case is only one of the numerous trade barriers faced by China's tire industry in recent years.
In fact, so far, Australia, Brazil, Peru, Egypt, Turkey, South Africa, Mexico, India and other countries have initiated anti-dumping investigations on China’s export tires. China's tire industry has become a relatively frequent anti-dumping investigation in international trade. One of the high and frequent industries.
Repeated trade frictions, of course, indicate that the international trade environment is unfair, but we should also reflect on why China suffers from the trade barriers of many countries.
In recent years, despite the rapid development of the tire industry in China, exports have ranked second in the world, but the brand output effect is weak, and profits are meager. China's export tire prices are lower than the average export prices of tires in various countries, among which the price of passenger tires is 26% lower, light truck tires are 21% lower, and heavy trucks are 38% lower. Such a price structure system is not only deducted from low-price products and disrupts the market. The "hat" also provided important evidence for foreign anti-dumping lawsuits.
Therefore, when we once again face trade barriers, we should not merely protest, we must also find countermeasures to open the market from the root, and truly realize the transition from reliance on prices to market reliance on product quality.
Under such circumstances, innovation is undoubtedly the best way for Chinese tire companies to change from quantity to quality. Only relying on innovation can we develop innovative technologies and products with independent intellectual property rights and high added value.
In fact, the development of the tire industry in China has never left innovation. The introduction of radial tire technology, digestion, absorption and re-innovation is a good example. Shandong Chengshan Group cooperated with the Beijing Rubber Industry Research and Design Institute to open up the country's own research and development of high-performance radial tires. The cooperation of 10 years has resulted in the development of the Tianshan radial tire. At the same time, it has also allowed North Oak Institute to find a way to innovate and achieve a win-win situation for the hospital. Guangzhou Huanan Rubber Tyre Co., Ltd. was built by the introduction of technology, but due to the lack of product specifications and the market could not be opened, it was in a difficult situation. Since the "10th Five-Year Plan", they focused on technological innovation and continuously developed new products. Not only did they open up the market, but its high-speed, low-profile tires developed independently were twice as expensive as foreign products of the same type in foreign markets, causing an explosion in the international market. A sensation, 70% of the products were exported to developed countries such as Europe and the United States.
Innovation means the future. Only through technological innovation can we establish confidence and truly capture the market, so that we can calmly deal with the ubiquitous crisis in the market.
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