China Tire Special Insurance does not help reduce imports
In this special security case, which is said to prevent the import of Chinese tires from damaging the US domestic tire industry, it seems that only the American Iron and Steel Workersâ€™ Union has strongly advocated sanctions against Chinese tires, while the majority of industry representatives oppose the idea of â€‹â€‹representing small and medium-sized manufacturers and maintenance. The United States Tire Industry Association, a recycling company, to the US Tire Free and Fair Trade Alliance, which represents distribution and retailers, and Coopertire, the second-largest tire manufacturer in the United States, has just stated its position.
Putting it on the background of the reorganization and transfer of international production, it is not surprising that this situation has arisen. Like almost all other manufacturing sectors, the tire industry in the United States has carried out a reorganization and transfer of production capacity in the global market in the era of globalization. The labor-intensive sunset industry has been transferred to developing countries, and the domestic production has moved toward emerging manufacturing and modern services. Industry transfer; The production capacity of low-end products within the same manufacturing industry is transferred to developing countries, and domestic production is transferred to high-end products. As for the Cooper Tire, the second largest tire manufacturer in the United States, who has just expressed its opposition to Wart Bao, China has invested more than US$25 million in China, and its Asia Pacific headquarters has also settled in Shanghai. Although there are four factories in the United States and another in Mexico, the companyâ€™s largest and most advanced factory in the world is a joint venture plant with Jianda Industrial Co., Ltd. in Kunshan, Jiangsu Province. The companyâ€™s factory in China has a high export tendency, and Cooper Chinaâ€™s tire exports account for 45% of the total. The United States is the main export market, especially the Kunshan factory that was put into operation in 2008, and the factoryâ€™s agreement with the local government established the factory. All tires produced in the first five years were exported.
The US tire market can be divided into two market segments, the OEM market and the replacement market. The latter can be further subdivided into three markets: high-end markets composed of first-rate, cutting-edge brands. Called â€œthe first-tier echelon marketâ€, the mid-range market composed of secondary brands (also known as â€œsecondary echelon marketâ€), and the low-end market composed of many other lower-profile brands (â€œthree-tier echelon marketâ€), the United States Most domestic manufacturers (though not all) gave up the three-tiered echelon market before China exported products related to the United States, and sought to obtain higher profits in the first-tier echelon market and the second-tier echelon market. The result of this international production reorganization and transfer is that the imported products involved in the case and the US domestic consumer tires are basically facing different market segments, and they are almost inseparable from each other. The products involved in imports from China are for the third-tier market in the United States to replace the tire market, while the products for the domestic industry in the United States are mainly sold to the automaker market, taking into account the first-tier echelon market for replacing the tire market, and do not compete with each other. The reorganization process will inevitably result in the closure of some factories. However, shutting down the factory itself is a healthy manifestation, and it is inconsistent with the so-called â€œindustrial damageâ€.
It is precisely because the United States imports China's tire growth is the result of the transfer of its tire industry's production capacity through cross-national restructuring. Therefore, China Tire's special insurance does not help reduce imports. Because consumers in the three-tiered echelon market that imported tires are facing are highly sensitive to price factors, even if they restrict imports, they will only switch to products imported from other developing countries under budgetary constraints (although the cost and quality may be slightly inferior to those made in China. ), And will not turn to domestic first-tier echelon market products. In practice, the export of tires from the United States to Thailand and Brazil has also been growing at a high rate. According to US statistics, the number and amount of tires imported from Brazil by the United States in 2007 increased by 42.81% and 59.34%, respectively, which was 0.96 higher than the increase in imports from China. 23.37 percentage points.
Capital transfer is relatively easy, labor transfer is relatively difficult, and contradictions and conflicts of interests in production reorganization and transfer arise from this. To solve this kind of conflict of interest, the way out is to use technical training and other tools to help the labor force to move more smoothly, rather than trying in vain to stop the trend of reorganization and transfer of production capacity.
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