·The US tire repair case for China ended in September

US President Barack Obama’s special safeguard measures for China’s tires announced on September 11, 2009 will expire in September this year. Since the US domestic industry and administration did not take any action intended to extend the measure within the statutory time limit, the measure will be terminated on schedule.

The expiration of the US tire special protection case is undoubtedly good news for Chinese companies. Experts analyzed that after the cessation of special ad valorem tariffs, orders in the US market are expected to increase significantly. At the same time, it is conservatively estimated that the profit margin of my export to US tire companies can increase by at least 5%-10%.

The reporter learned that among the A-share listed companies, the largest proportion of tire export revenue to the main business income is SJiatong, which has more than 70% of its products for export, and the United States is also one of its important export destinations. In addition, Fengshen shares, Qingdao Double Star, and 黔 tires also have a considerable proportion of exports.

Special safeguard measures or expiration

On September 11, 2009, the US government announced that it will impose special ad valorem tariffs of 55%, 45% and 35% on passenger car and light truck tires for three consecutive years. This is the first time that the United States has implemented special safeguard measures against China, which has caused tremendous shocks in the industry.

A person from the General Administration of Customs pointed out that "the 'special protection case' not only affects 12% of the production capacity of China's tire industry, but also involves raw materials such as upstream synthetic rubber and carbon black, causing problems such as lower operating rates and unemployment of workers."

After the implementation of the special safeguard measures, especially in the first two years, the impact on China’s tire export enterprises was very obvious. Taking the data of October and November 2010 as an example, the foreign trade situation at that time was generally warming up, but the tire exports did not increase or decrease, falling by 37.5% and 35.5% respectively. The General Administration of Customs has issued an early warning to this.

In the past three years, whether the expiration of special safeguard measures has expired is undoubtedly the concern of the industry. According to US law, unless the relevant parties take action to request an extension six months before the expiration of the special safeguard measures for the tires (before March 2012), the measures will expire after three years of implementation.

From the current point of view, neither the US Steel Workers Federation nor Obama has asked the US International Trade Commission to extend special safeguard measures before March of this year. A spokesperson for the US Trade Representative Office also said earlier that "no interested parties apply for an extension, and tire special protection measures will be terminated on schedule in September."

Conducive to the profit improvement of export enterprises

"The United States is the country with the most tire exports in China. Now that the US special protection case expires, enterprises must pay attention to it." Xu Wenying, deputy secretary general of China Rubber Industry Association said.

Experts analyzed that the expiration of the US tire special protection case is undoubtedly good news for enterprises. Orders in the US market are expected to increase significantly after the cessation of special ad valorem tariffs. At the same time, it is conservatively estimated that the profit margin of my export to US tire companies can increase by at least 5%-10%.

For the export market in the second half of the year, the industry generally believes that there are still many uncertainties and major difficulties, but still have confidence in the market.

"In September, the US special security case expired. From now on, it is unlikely to delay the extension. This is beneficial to China's tire exports." Cai Weimin, secretary general of the China Rubber Industry Association Tire Branch, said that the export market will not be worse than the first half of the year. The recovery of the US market in the main markets is relatively stable, and other markets such as South America, Southeast Asia and the Middle East will be better. Therefore, as long as there is no major trade friction event in the second half of the year, exports should maintain steady growth.