The tire industry will not be alone

On September 11, local time, President Obama decided to impose a three-year punitive tariff on all cars and light truck tires imported from China. The news spread caused a strong protest from China's tire production industry and related government departments. They all criticized this as the rise of U.S. trade protectionism. When countries around the world have taken active measures to deal with the financial crisis, U.S. practice has set a dangerous precedent. .

In the face of this situation, we believe that the Chinese tire manufacturing industry must make the worst plans for the moment when it is impossible to change the relevant decisions of the US government and the United States is one of the world's largest tire markets. Relevant companies, whether they are active or passive, whether they are willing or unwilling, have to directly face this international war of commerce. They should all rise up to fight and maintain their position without losing the third road.

How to keep the U.S. market, we offer three suggestions:

First, turn the crisis into a turning point, seize the opportunity of 3 years of special insurance, improve the quality of Chinese tire products, and capture the high-end market in the United States. Relevant information shows that most of China’s tire products exported to the United States have entered the auto repair industry, and the United States’ domestic tire companies occupy a high-end market. Chinese enterprises can take advantage of this special security event to become passive and take the initiative to adjust product structure, improve quality, and launch attacks on the high-end market in the United States. The implementation of this strategy by Chinese enterprises has a unique condition, that is, the moderately loose monetary policy of the Chinese government has not changed so far, and the relevant government departments will provide strong support for the technical transformation and product upgrading of tire manufacturing enterprises.

Second, properly adjust the product structure for exports to the United States. There are many types of tires. The scope of the United States' special protection is limited to cars and light trucks. The United States, as the world's largest car market, has a complex and diverse demand for tire products. Although the demand for cars and light trucks is large, the relative prices are not high, while the heavy trucks and other special vehicles, although the demand for tires is not as good as the above two cars, but the price is higher. Once such a market is occupied, the stability is more stable. high.

Third, make full preparations to prevent competitors from making moves again after 3 years. Although the U.S. government’s special protection period is three years, three years later, U.S. competitors may put forward various reasons for requiring the U.S. government to maintain this protection measure. This situation is very likely to occur. China's relevant departments, relevant industry associations, and production companies should take precautions and make preparations as early as possible.

In addition to the above three strategies to protect the US market, we believe that the Chinese tire industry should also pay more attention to the following two aspects.

First, we must pay close attention to the changes in other international markets outside the United States and properly handle them. According to the relevant rules of the WTO, special safeguard measures of the United States against China can be quoted by other WTO members. That is to say, other WTO members can also emulate punitive tariffs imposed on Chinese tires in accordance with the United States. We suggest that in the face of possible incitement by other WTO members, the attitude of the relevant departments should be more explicit and, if necessary, consideration can be given to counteracting the WTO rules.

Second, China's automobile industry has developed rapidly in recent years, which provides the tire industry with a rare opportunity to open up the domestic market. Tire industry will accelerate the development of the domestic market at this time and it will also greatly help resolve the crisis in overseas markets.

It is worth noting that our tire industry is not alone. On the 13th, from the Ministry of Commerce, the Ministry of Commerce initiated anti-dumping and anti-subsidy case filing review procedures for certain imported automotive products and broiler chicken products originating in the United States in accordance with Chinese laws and WTO rules. It can be seen that when the United States launches an "unreasonable" trade war, China will not wait and it will actively respond.

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