Developing Countries Pay Attention to Anti-dumping Investigation against China's Tires

Recently, the Brazilian government decided to levy anti-dumping duties on China's truck tires again, which has aroused strong concern among domestic tire companies. Some people in the industry have found that more and more developing countries are joining the anti-dumping ranks for exporting tires to China.

The reporter learned from related agencies that in recent years, in addition to the increasing anti-dumping and anti-subsidy measures against tires from developed countries in Europe and America, anti-dumping investigations against Chinese tires from Asian, African and South Asian countries have shown a significant upward trend. .

Strong anti-dumping arbitrariness in developing countries

According to Zhang Ye, a lawyer of Beijing Kangda Law Firm, as China's tire export volume increases, more and more exporting countries have adopted it, and countries that have taken "double countermeasures" against Chinese tires have not only been confined to developed countries in Europe and America. The more "Asia-Africa" ​​countries have also joined this ranks. In the past two years, the number of countries and cases that filed anti-dumping investigations on Chinese tires has skyrocketed, and the types of products involved in tires are also expanding.

Statistics from the reporters found that from 2011 to 2014, China had a total of more than 20 “double counter” investigations from other countries, including 14 anti-dumping investigations from developing countries such as Asia and South America, reaching 70%. About seven accusations from Brazil and India alone.

According to analysts' analysis, the characteristics of anti-dumping against Chinese tyres in Asian, African and Latin American countries are characterized by a greater degree of subjectivity and lack of necessary transparency in the confirmation of the existence of dumping and the determination of dumping margins. It is determined whether dumping at low prices constitutes a domestic industry. On the conclusion of the damage, the government has great discretion.

This feature is very clearly reflected in China's tire exports. When these countries determine whether there is dumping in China’s tire companies, they do not really start from the constitutive elements of dumping. As long as one of the state’s enterprises raises allegations of dumping, they think that dumping does exist, and corresponding investigation measures are taken immediately.

It is reported that, unlike Europe and the United States, the levy of anti-dumping duties from developing countries is very large, ranging from a dozen percent to several hundred percent. This is reflected in China's tire export products, and its anti-dumping tariffs are usually very high.

This is because some countries regard China as a "non-market economy country". When calculating the anti-dumping tax rate, they use the "substitute country" price as the basis for determining the normal value of export products. The selection criteria for “alternative countries” are rather vague and arbitrary, leading to severe discrimination against China’s tires and other export products.

The government responds better

“The countries in Asia, Africa and Latin America have already become the main players in anti-dumping measures against Chinese tires.” At the 2015 China Rubber Annual Conference recently held, Zhang Ye warned the tire companies present at the keynote speech.

It has been learned that this situation has a direct bearing on the increasing volume of Chinese tire exports. According to statistics from the China Rubber Industry Association's statistics in 2014, the country exported 181 million tires, an increase of 22.6 percent year-on-year. Export tires accounted for 44.9% of total tire production.

What is not commensurate with this trend is that the trend of rising or falling prices of Chinese tires has become increasingly apparent. The relevant data obtained by Tire World Net shows that the added value and profit of domestic tire exports are relatively low. Last year, the average price of exported passenger car tires decreased by 8.2% from the previous year, and the average price of heavy-duty tires decreased by 11.4% year-on-year. Analysts believe that if China's tire exports continue to develop with this trend, it will easily attract anti-dumping investigations in other countries.

It is understood that other countries’ trade remedy measures for Chinese tire products are showing a trend of enlargement and complication: they have evolved from a single approach to a composite approach; a wide variety of tire products are involved and there is not much expansion; tire products in the same category are many There have been more and more cases of investigations in each country.

The person concerned said that the rapid growth of foreign trade in China's tire products, this is good, but the export market is too concentrated, and the price is low, which can easily lead to other countries to take trade remedy measures in order to protect their own industries. Take Dongying City of Shandong Province as an example. The value of rubber tires exported to ASEAN in 2014 reached 173.4 million U.S. dollars, accounting for 34.69% of local ASEAN products.

To this end, relevant sources suggest that in the face of repeated anti-dumping investigations by developing countries on Chinese tires, in addition to urging export enterprises to accumulate international marketing experience and standardizing their competition in terms of not resorting to “price wars,” the government should also be active. Responsible measures are taken to respond to these problems, and the developed countries' mature anti-dumping mechanism is used to leverage international trade “leverage” and countermeasures to obtain greater benefits for domestic enterprises. The facts of various countries have proved that the government will be more effective in responding to anti-dumping.

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