China's Export Situation In The Tire Industry

According to General Administration of CustomsSince 2009, on the tire barriers to trade are
statistics show that in 2009 China's total exports inincreasing daily. April 29, the United States launched
the first half tires 130 million, down 18.8%, total 3.31special safeguard investigations against Chinese tires,
billion U.S. dollars, of which tire exports in February hitJune 29 decision to impose special tariffs for three
a monthly export volume since 2008, the lowest.years, and in September 11 has made a final decision;
Among them, the United States, European Union,May 18, India's fifth to launch in China by car tire
Africa and Latin America, respectively, exports ofspecial safeguard investigations; June 18, Brazil,
tires 3,307 million 2,542 million 1,777 million and 1,698decided to import from China, passenger and freight
million, down 21.7%, 18.2%, 9.7% and 26.7%; of thecar radial tire levy definitive anti dumping duties for
above mentioned countries and regions in totalfive years.
exports Over the same period China's tire exportsCurrently China has more than 500 million sets of tire
accounted for 71.7% of the total.production in the United States live in the world, while
In the first half, China's processing trade exports bythe annual export volume of 2.5 to 300,000,000 units.
110 million tires accounted for 84.6 percent of totalDeveloped countries in Europe and the United States
exports, export volume dropped 15.4%, to generalfinancial crisis caused by the weakening demand for
trade export of 2,184 million tires, down 31.2%.cars, which led to a sluggish market demand for tires,
Downstream, the export of motor cars with theorders decreased in the first half, China's tire exports
new pneumatic rubber tire 5,091 million, down 8.3%,in the face of pressure, plus impose special duties on
exports of bicycles with the new pneumatic rubberthe export situation will worsen.
tire 3,597 million, down 32%.In the raw materials, the tire companies also face
China in the first half led to decline in exports isupward pressure. Tire enterprise in the first half
mainly due to the continuing impact of theprofits of substantial growth, mainly prices of raw
international financial crisis, downstream decrease inmaterials such as natural rubber, Synthetic rubber
demand and increasing trade barriers. In the case ofprices are low. Now, with rising oil prices, rubber,
exports to the U.S. tire special protection under thecarbon black and other prices are also gradually uplift,
influence of external factors such as the second halftrapped inside and outside the tire business, the
of China's exports tires is not optimistic.performance can hardly be optimistic about the
The U.S. tire production capacity is currently about 3.5second half.
million units, the number of tires imported from ChinaThe United States imposed a special tariff, will be
accounted for one fifth of the U.S. market, in volumeoperating in the United States imported Chinese tires
terms, China's tire exports to the United States isof more than 200 distributors, more than 43,000
indeed an impact. China top ten tire companies, 70%retailers have a major impact. The duties mainly
of co operation with foreign investment, foreignrelated to semi steel tires and small size all steel tire,
funded enterprises exported 7,354 million tires, whiledomestic related enterprises, mostly OEM (OEM
the private sector combined with the state ownedproduction) orders, and sales channels rests in the
enterprises exported 4,792 million, special tariffs mayhands of foreign capital and profits are mostly
have a greater impact on the joint venture.traders earn. This makes us more concerned about
According to Reuters news agency reportedthe tire company's brand and sales networks.
September 14, China's tire industry in a joint ventureThe long term, China is becoming the world's tire
with processing trade. Exports to China causedproduction capacity to transfer the target site.
damage at the same time it will also harm the U.S.Europe and the United States developed regions of
interests of foreign companies.According to thehigh labor costs, skilled workers in short supply, large
Chinese Rubber Industry Association estimates, tireconsumption of energy, CO2 pollution, the transfer of
manufacturing and related industries will be up to 10production become a trend. However, the transfer of
million jobs are threatened, which means that in someproduction capacity, so that China take on more
areas may bring social and political issues.environmental costs.