Increased Chinese Tire Trade Barriers in the US Due to Competitiveness

Although the tires exported to the United States account for only about a quarter of China’s total exports, the U.S. trade barriers imposed on the Chinese tire industry have become the hardest hit areas for Sino-U.S. trade friction.

Constant trade friction

In 2009, the United States initiated special security investigations on imported cars and light truck tires from China, and imposed a three-year punitive tariff on Chinese tires.

Five years later, in 2014, the US Department of Commerce initiated a countervailing anti-dumping (“double reverse”) investigation on Chinese passenger car and light truck tires, involving more than US$2 billion.

On June 18, 2015, the United States issued the final ruling result, levying 14.35%-87.99% anti-dumping duties and 20.73%-100.77% countervailing duties on Chinese tire manufacturers.

In August of that year, the United States made partial amendments to the final ruling, including changing the anti-dumping duty of compulsory respondent companies such as Jiatong Tire from 29.97% to 30.74%, and applying Bridgestone tires, Cooper Tire tires, and Qingdao Sen Unicorn tires. , Shandong Linglong tires and other dozens of companies to obtain a separate tax rate of corporate anti-dumping duty, revised from 25.30% to 25.84%.

In addition, Shandong Yongsheng's countervailing duty was raised from 100.77% to 116.33%.

After a wave of waves

In February 2016, the U.S. Department of Commerce, at the request of the U.S. Steel Workers Federation, launched a “double counter” investigation on truck and passenger car tires imported from China. The amount of tires involved was US$1.07 billion.

At present, this trade lawsuit is still in progress. The U.S. Department of Commerce initially determined that China’s truck tires for U.S. exports are subsidized, with a dumping margin of 30.36%.

China's tires often suffer from trade barriers China's tires often suffer from trade barriers

The final result of the anti-dumping investigation will be announced before January 20, 2017.

There are many reasons behind

Yu Shengxing, a senior partner of Haihua Yongtai Law Firm who has long been engaged in legal services for international trade disputes, said that Chinese tires frequently encounter trade barriers overseas. There are many reasons for this.

First of all, with the upgrading of China's manufacturing industry, the competitiveness of tires and other products that have stringent requirements for quality and safety continues to increase, and their market share in foreign countries continues to expand, thereby squeezing the markets of domestic manufacturers in importing countries.

Second, the union organizations represented by the United States and other forces have risen.

These interest groups are not traditional domestic producers, but they have formed a powerful force in election politics and have exerted great pressure on the executive authorities.

They reasoned that they wanted to exclude bread from foreign imports.

Third, the integration of the global economy is accelerating, and economic factors are rapidly flowing, thereby increasing efficiency and reducing costs.

At the same time, trade protectionism is also an easy-to-infectious cancer.

After a country has acted, it may lead another country to be vigilant and even take preventive protective measures.

Under this circumstance, whether there is indeed dumping or subsidies in imported products and whether the domestic industries of the importing country are seriously damaged has become a secondary issue.

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