Analysis of Anti-Dumping Problems in Chinese Tire Industry

The 2005 that was just in the past is arguably the most frequent year in which the Chinese tire industry encountered international trade disputes. It was successively subjected to anti-dumping investigations against Chinese tires by South Africa, Mexico, and India. The Turkish anti-dumping investigation filed in 2004 was also ruled as dumping. Coupled with the previous anti-dumping sanctions in Venezuela and Peru, Chinese tires are being forced to "retreat" from some markets, and other markets may become more "crowded." As China's accession to the WTO and the acceleration of global economic integration process, most industries in China are facing more and more international competition and game with large multinational companies. Rubber and other rubber products, such as tires, have undergone rapid development in the past few years. Like many domestic industries, production capacity has begun to become relatively surplus, and the domestic market has become relatively saturated. As a result, exports have become a new growth point that has driven the continuous development of the industry. This has even led to the development of related supporting industries, such as rubber machinery, additives, and skeleton materials. In recent years, these industries have entered the world's advanced ranks and a large number of exports, so they also began to face the troubles of anti-dumping. Frequent anti-dumping investigations have become issues that the Chinese rubber industry must face in the future. However, it is very important to face what kind of mentality. The author believes that anti-dumping has become a common type of trade weapon in the international market. In the face of more and more anti-dumping investigations, the industry should respond with an ordinary attitude. Do not mention anti-dumping, fill out righteous indignation, and should focus on how to prevent And respond to anti-dumping. Even if we are treated unfairly, we must rely on sufficient evidence and correct defense techniques to solve the problem. The Chinese tire industry should learn how to solve international trade disputes in the face of the troubles of anti-dumping investigations, and grow and mature. To prevent Chinese tires from encountering anti-dumping in more countries, the solution to this problem is to merge and restructure, adjust the industrial structure, and gradually replace the current single low-price competition tactics with a variety of competition measures; the palliative approach is to regulate the export market. Order, trying to control the behavior of individual companies blindly low-cost exports. First of all, we should analyze the market characteristics of Chinese anti-dumping countries' tires before we can avoid such problems in other similar countries. From Venezuela, Peru, Turkey, and South Africa to Mexico, it seems that there is a common feature that the market is small or slow, supply is relatively stable, and the original competitive landscape is relatively fixed. Under such circumstances, the massive import of cheap tires in China will inevitably cause great competitive pressure on similar products of local companies, and it will easily lead to the adoption of anti-dumping as a simple and effective weapon. For example, in 2004, China exported 580,000 tires to Mexico, which may be an obvious increase for Mexico's medium-sized market, but it only accounts for 0.85% of China's tire exports. As China is a big country for tire production and export, and exports are carried out independently by dozens or hundreds of tire companies, there is not only lack of coordination, but also fierce competition. To put it nicely, we only need to move our little fingers to influence the trend of tire prices in a small and medium-sized market and the market structure; to awkwardly speaking, any Chinese tire company will give someone a handle if they are careless. Endangering the export of Chinese tyres to the country. The other category is those countries where the tire market is large or has a rapid growth rate. For example, the North American market (currently accounting for 1/3 of China's total exports of tires), its market is very standardized, and competition has been fierce. Although Chinese tires have not yet encountered anti-dumping actions in these countries, in the long run, it is impossible to rule out the possibility that some competitors may jointly raise anti-dumping investigations on Chinese tires. The anti-dumping investigation in India that was initiated at the end of 2005 is a good example. As a developing country with a growth rate slightly lower than China's, it is also a tire-producing and consuming country with a high annual growth rate in the tire market. There are nearly 10 national tire companies and joint ventures in India. The size of large companies is similar to that of large tire companies in China. However, unlike China, which has many SMEs, the market structure is relatively clear and orderly. India's annual import and export volume of tires is not small, but China exported only 490,000 tires to India in 2004, and even less than 1% of the total annual tire production in India, but it is still not acceptable to local businesses. Second, we must formulate preventive measures in accordance with the characteristics of different markets. Before a multinational tire company enters a new market or takes a major action, it must analyze the market size, development speed and potential, price, competitors' situation and market share, potential opportunities and threats, and the reaction of competitors. And then take action. However, few domestic tire companies have the ability to do this, and there is no domestic organization to provide companies with a similar export guide. Therefore, whether the trade association can take on this important task and represent domestic companies to negotiate with the Ministry of Commerce and the Customs to establish an export file for tire companies, regularly alert those enterprises whose export prices are significantly lower than the normal range, and take corresponding technical measures to reduce the The export company’s customs credit rating increases the difficulty of export, and gradually controls the number of tires exported at low prices. It is understood that the China Rubber Industry Association has already Set up an anti-dumping warning mechanism, which is a good thing for the rubber industry. In the long run, only treating the symptoms and problems, standardizing the market order, and improving the core competitiveness of Chinese tire companies can enable the Chinese rubber industry to truly embark on a healthy and sustainable development path.

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