Business people said: "We have to report to the end!"
On January 11, Beijing time, the World Trade Organization (WTO) issued an announcement that it will set up an expert investigation team at a meeting of trade officials of member states to be held next week to investigate the high tariffs imposed on Chinese tires by the United States.
The survey will focus on a three-year high tariff imposed on Chinese tires by President Barack Obama last September. Among them, the tariff for the first year is as high as 35%, which is much higher than the 4% normally collected in the past. Obama's move is aimed at slowing the growth rate of Chinese tire exports to the United States and protecting the US tire industry.
It is reported that the WTO Dispute Settlement Body will hold a meeting on January 19. The agenda of the meeting includes China's complaint. The U.S. government postponed China’s request for an expert investigation team last month. However, according to WTO rules, the U.S. government cannot postpone the request again.
According to WTO legal procedures, the WTO expert investigation team will assess whether the high tariffs imposed by the United States violate WTO rules. However, WTO experts stated that, in general, WTO trade disputes will take 1-2 years to be resolved.
Domestic tire companies actively respond
As the only domestic supplier of wheel hubs capable of synchronizing with high-end brands such as Mercedes-Benz, BMW and Audi. The relevant staff members told this reporter that it is an act of misusing the WTO rules that American companies pass on their own mismanagement to Chinese companies. The factory is cooperating with government departments and industry associations to make a multi-pronged appeal to clarify the truth of the matter and hire a lawyer to respond. "We must tell the truth."
Another wheel exporter of Zhejiang Wanfeng Aowei Steam Turbine Co., Ltd., its relevant person in charge also told this reporter that Wanfeng's sales in the United States accounted for 15% of its total sales, and the ruling against dumping was established. It will be affected by some. The person in charge said that the price of Wanfeng aluminum wheels is reasonable, and the price in foreign countries is higher than the domestic price, so it is not dumping. "Since Obama signed the 'special insurance' order, this will require WTO intervention."
Deng Yaxi, secretary-general of the China Rubber Industry Association, said that the US tire special protection case has directly reduced or stopped production of dozens of tire factories in China. After being blocked by the United States, it will also transfer surplus production capacity to the domestic market, even if the auto market is hot for the tire industry. It is also difficult to absorb excess domestic production capacity and the domestic tire industry will be under pressure as a whole.
Tyre protection is a trade protectionism measure
In fact, Chinese tires imported from the United States are mostly used for low-end models. Brand-name tires originating in the United States are easily priced at more than $100, and Chinese tires are sometimes sold at half the price of American tires. After the United States imposed high tariffs, the price of Chinese tires had to be raised.
In 2008, the United States imported 46 million tires from China, which is three times the amount imported in 2004. Moreover, the market share of Chinese tires in the United States rose from less than 5% to about 17%.
A member of the Rubber Branch of the China Rubber Association explained to the reporter that after a US$30 off-sale price for a Chinese tire, after entering the U.S. market with a 35% tariff, the U.S. dealer’s purchase price was about 40 U.S. dollars. The final retail price that the firm will bring to the market will reach $50-60, which is higher than the price of tires produced in the United States.
According to statistics, China currently ranks first in the world in producing more than 500 million sets of tires. The annual export volume reaches 250 million to 300 million sets. The impact of the financial crisis led to a weakening of automobile demand in developed countries in Europe and America, which led to a sluggish demand in the tire market. In fact, orders received by Chinese companies since the first half of last year have been significantly reduced.
Yao Jian, spokesperson of the Ministry of Commerce of the People's Republic of China, said in a speech earlier that the US imposed high tariffs on Chinese tires was a protectionist measure, and that China’s tire exports to the United States fell by about 15% in the first half of 2009.
Yao Jian said that the conditions for the use of special safeguard measures are very clear. Only when imported products do disrupt the local market, can this relief measure be used, but China's tire products have apparently not caused these effects; the subject of the special safeguard measures Must be the relevant stakeholders, but the subject of the US complaint is the United States Steel Workers Association, the United States tire dealers, retailers, consumers have opposing views.
“In fact, 68% of China’s tire products exported to the United States are exported by Chinese and American companies. U.S.-funded enterprises have obtained a lot of room for development and profitability in China,†said Yao Jian.
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