Sino-U.S. tire investigations have caused American goods to sell, and Chinese exports have surged.


On April 7, the US Steel Workers Federation took special safeguard measures for Chinese passenger car tires and light truck tires. At the hearing on August 7, the Chinese representative demonstrated that it was not China’s tire exports that affected American tire workers. With regard to employment, President Obama will make a final decision on whether to implement special protection measures and the types of measures before September 17. Can such a trade dispute with two losers actually avoided? How is China fighting for the initiative in the confrontation?

Fan Rende, president of the China Rubber Industry Association, told reporters that there are about 100,000 tire factories and the employment of raw material factory workers. It should be said that the impact is very large.

There are many products exported by China to the United States. Tyres are only involved in a relatively small amount. As this special security case was established, other products exported by China to China may also face special safeguard measures. Under the current economic environment, this will China’s export companies and workers face enormous pressure on employment. Xu Wenying, the deputy secretary-general of the China Rubber Industry Association, said that steel, automobiles, and textiles are much larger than tires, so the Chinese government believes that this hole cannot be opened first.


In the past two days, the Chinese delegation led by Vice Minister of Commerce Zhong Shan is in the United States. He held talks with the White House Security Committee, the Ministry of Finance, the Office of the Trade Representative, the Ministry of Commerce, and the State Council to negotiate with the US on the special case of tire protection. And the consultations expressed that the Chinese government firmly opposed the position and concerns of the special safeguard measures. According to sources, if this special safeguard case is established, Chinese tires will lose the US market, 100,000 people may lose their jobs, and the United States will have 25,000 people unemployed, plus tire sales, warehousing, transportation, and handling. Nearly 100,000 people are affected. Can such a trade dispute with two loses actually avoided? How is China fighting for the initiative in the confrontation? Let's take a look at the ins and outs of the tire special protection case.

Tyre Protection Case: Can these two trade disputes that have been lost to each other be avoided?

On the early morning of April 29th, Xu Youming, the manager of the legal department of Hangzhou Zhongce Rubber Co., Ltd., received an overseas long-distance call from overseas. The other party notified the company that the US Steel Workers Federation had submitted special safeguards to the US International Trade Commission. To limit China's exports to the US consumer tires.

Xu Youming, Legal Department Manager of Hangzhou Zhongce Rubber Co., Ltd., “On April 29, the US Department of Commerce initiated the case, and the US Steel Workers Federation took special measures to protect Chinese passenger car tires and light truck tires.”

Special safeguard measures refer to the special protection measures taken by the WTO when the number of export products of other countries has surged and damage has been caused to domestic industries. If this special safeguard investigation is established, the United States will impose special tariffs of 55%, 45% and 35% on passenger car and light truck tire products exported from China for three consecutive years.

Shen Jinrong, Chairman of Hangzhou Zhongce Rubber Co., Ltd. “We think it is incredible.”

Shen Jinrong, Chairman of Hangzhou Zhongce Rubber Co., Ltd. His China Strategic Corporation is China's largest state-owned tire manufacturing company. After working in the company for several decades, he experienced no less than 10 times of responding to trade frictions.

Reporter: "After you knew this special security case, what was your first reaction?"

Shen Jinrong: “Adding tariffs of 55%, 45%, and 35% means that Chinese tires cannot enter the US market.”

Not only do the tires exported to the United States have to be affected, but the more serious fact is that once this special safeguard measure is established, all other WTO members can no longer perform any procedures and directly implement the same special safeguard measures. This means that China Exports' foreign export business is almost at risk of total stagnation. This made Shen Jinrong anxious.

Shen Jinrong: “We are 20,000 people. If it is 5%, then we have at least 1,000 people. What about 1,000 people?”

Shen Jinrong mentioned that more than 1,000 workers are workers directly serving American tires. Most of them are migrant workers from Jiangsu, Anhui, and Hunan. Once the export business is stopped, workers are bound to face the danger of losing their jobs.

Reporter: "How is life?"

Zhu Xiaojun, molding shop operator: "At present, I am quite satisfied with myself and I am very stable."

Zhu Xiaojun, 37 years old, is a operative of the tire forming workshop involved in the case and has been working at the factory in Xuzhou, Jiangsu for nine years. It is a skilled and conscientious worker. The couple spent 400 yuan to rent a room of only 9 square meters in the suburbs. Because the size of the house is too small, only the children usually live in the bed, and both husband and wife sleep on the floor. Despite the hardships of life, at least children can afford to go to school and can save some money. This makes Zhu Xiaojun very satisfied. However, after knowing the news of the special security case, Zhu Xiaojun became very worried. In his view, this special security case is closely related to his own life.

Zhu Xiaojun: “With fewer jobs, people must be reduced. The factory must definitely reduce workers. The impact on us is certainly great.”

Zhu Xiaojun believes that the son is only 11 years old this year and is still in elementary school. There are still many places where money is used in the future, and he is no longer young. It is difficult to find such a job with stable income.

Zhu Xiaojun: "If I lose my job, I can't stay in Hangzhou. At least, I can't stay. We can't tell anything about the truth."

Zhu Xiaojun told reporters that although he did not read many books, he did not quite understand the relevant legal provisions. However, he has a simple idea, that is, he hopes that Chinese enterprises must send representatives to the United States for talks so that the United States can understand our true situation.

How can we prevent the outbreak of trade war?

The special protection storm rolled up on the other side of the ocean, the operator Zhu Xiaojun can not fully understand. He just hopes that the worst situation does not happen, he can keep this stable job, so that children can live better in the future. In fact, in the tire industry in China, there are thousands of ordinary workers like Zhu Xiaojun. Because of tire protection, they are now faced with the same confusion and pressure. How can China actually let the United States understand these real conditions? How can we prevent the outbreak of trade war?

Fan Rende, president of the China Rubber Industry Association, said: "There are about 100,000 tire factories and there are workers involved in the raw material plant. It should be said that this effect is very great."

Zhu Xiaojun did not know that the special security protection case he encountered was also a special safeguard investigation with the largest amount of case value and the greatest employment impact in the entire tire industry and even in China.

Fan Rende: "The case of this special security case is very significant. It may be the largest one so far. It may have been similar to this kind of trade dispute. One hundred and twenty billion dollars is a big case, and it has now exceeded 1.7 billion U.S. dollars."

There are many products that China exports to the United States. Tires are only a relatively small amount. If this special safeguard case is established, other products exported to the United States may also face special safeguard measures. In the current economic environment, this will put tremendous pressure on the employment of Chinese export companies and workers.

Reporter: "Steel, Car?"

Xu Wenying, deputy secretary-general of the China Rubber Industry Association, said: “The steel, automobile, and textile industries are much larger than the tires and will follow. That is to say, the Chinese government believes that this hole cannot be opened first.”

How can we stop the US special security case from opening this hole? The Chinese delegation arrived in the United States on the morning of August 4th. The hearing took place only 3 days. Both Xu Wenying and Xu Youming are members of this industry delegation. They are clearly aware that the use of this precious 72 hours is the best opportunity to stop the special safeguard case and protect the stable employment of 100,000 domestic workers. How can China's voice be transmitted to relevant departments of the United States in the shortest possible time? In a short period of 72 hours, the Chinese tire industry delegation hired two American lobbying companies to lobby departments and relevant members.

Xu Wenying: "We listened to the Americans' advice in the second round. It was legal to lobby companies in the United States, and we can quickly put your voice on your case and send them to these important departments because they want to make a round. A round of meetings and voting."

The lobbying company mentioned by Xu Wenying is considered to be a unique landscape of American politics. According to statistics, there are tens of thousands of lobbying companies registered in the United States, and more than 20,000 full-time and part-time lobbyists from government offices in Washington. Not only are US companies and groups employing lobbying companies, many foreign agencies also widely use lobbying companies to communicate with U.S. government agencies.

Xu Wenying: "The lobbying company that you invited, he may have persuaded these related people, and that would be beneficial to us, so it is important for us to consider the lobbying company afterwards."

Under the arrangement of the lobbying company, the delegation met with the Assistant Secretary-level officials of the U.S. Department of State on the second day of their arrival in the United States. On the third day, they continued to meet with the U.S. Department of Labor, the Ministry of Finance, and the relevant officials of the Ministry of Commerce. .

Xu Youming, legal manager of Hangzhou Zhongce Rubber Co., Ltd., said: “When it came out, we hurriedly slammed a sandwich on the road and went straight to USTR, the last stop we had to visit. Then USTR is the U.S. Trade Office."

The office of the U.S. Trade Representative is the organization that holds hearings for the special tire protection cases. They will be responsible for reporting the relevant information and handling opinions of the hearings to President Obama and handing them over to the President for signature. Therefore, the key stop for this industry delegation to the United States is the representative office of the US Trade Office. In the case petition, the American Iron and Steel Workers Federation certify that China’s tire exports to the United States have increased sharply. Compared with 2004, exports in 2008 rose by 215% to 46 million, and the amount increased by 295% to US$1.788 billion. , causing damage to the U.S. domestic industry. So, in fact, is the surge in exports?

Shen Jinrong, chairman of Hangzhou Zhongce Rubber Co., Ltd., said: “Some of the production capacity of tire companies is also being transformed into China. The actual imports from China, and the imports from China, are about 900, in addition to the transfer of quantity. If these 900 points are so many years old, the annual growth rate of the market is less than 1%. You say that this is hurt. This is a surge in volume. This is not a surge in quantity."

As we are increasingly competitive in the manufacturing industry and have demonstrated high quality and low prices in terms of labor, raw materials, and factories, the number of multinational investment companies in the tire industry in China has increased in recent years. This has increased the share of China’s export products. This also includes American tire manufacturers. At the same time, China exported tires to more than 200 agents and 43,000 retail stores in the United States, creating jobs for 100,000 Americans. Once the United States closes the door of China's export of tires, it will not only cause damage to China, but also cause more damage to related US industrial jobs.

Xu Wenying: “Their own economists said that you may save the work of a tire worker and lead to 12 or 25, 12 to 25 upstream and downstream, what tire dealers and warehousing companies are. Unemployment of transport operators."

The second day after the industrial delegation visit ended, it was the official hearing of the U.S. Trade Representative Office. What everyone who arrived at the scene did not think of was that the hearing site that originally had only 40 seats was crowded with more than 100 people from all walks of life in the United States. What surprised the U.S. Trade Representative’s office was that none of the U.S. tire companies that should attend the hearing had come to the hearing.

Xu Youming: “First of all is Timmy, the director of the China Office of the Trade Office. He presided over. He asked the American Steelworkers Federation that at the meeting, why did the American tire company not come? Then the Iron Workers’ Union said Because these factories have investments in China, it has factories."

The Steel Workers’ Union that filed this complaint is a trade union organization in the United States. He does not represent a tire manufacturing enterprise. The federation stated that it represents the interests of 15,000 civilian workers in 13 tire factories in the United States and submitted special safeguard applications. If it is stated to this trade union organization that China’s tire exports to the United States do infringe on the industrial interests of US tires, then one of the most qualified as a plaintiff should at least have a US domestic tire manufacturer, but all US tires None of the companies went to the scene to give a hearing or provide testimony and complaints.

Xu Wenying: “You see no, at the hearing that included ITC, there wasn’t a tire factory. This was the culprit of the USW (Steel Association of Steel Workers). People said that you represent the interest of workers and representatives In the interest of tire workers, what are the interests of a tire factory that you do not represent? You are not.”

A total of 9 groups of delegations took part in the entire hearing. Xu Wenying, on behalf of the Chinese tire industry delegation, gave a 15-minute speech at the meeting and opposed the United States’ special protection measures for China’s tire exports. In the end, among all the nine groups of speakers, a total of six groups expressed their opposition to the implementation of special safeguards in the United States. Two groups expressed their support and one group did not make a clear statement.

Fan Rende, president of the China Rubber Industry Association, said: "Through this fight, we can basically find out how to deal with similar trade frictions."

At the hearing on August 7, the Chinese representative used sufficient evidence to prove that it was not the Chinese tire exports that affected the employment of American tire workers. According to the investigation procedure, the U.S. Trade Representative Office will organize the contents of the hearing and report it to the U.S. government before September 2. President Obama will make a final decision on whether to implement special protection measures and the types of measures before September 17. There are still less than a month left. Everyone is looking forward to this result.

In the past few days, Xie Diqi’s family watched TV on a daily basis to learn about the latest status of the tire special security case. Like Zhu Xiaojun, his family was also a migrant worker from Hangzhou Zuozhuang Tire Co., Ltd. from rural Anhui Province. He works as a finished product and he loves people to do quality inspections.

Xie Diqi: "I hope to do it here for a long time, anyway, better than my hometown."

Xie Diqi's greatest hope is that through this hearing, Chinese companies will win the initiative and let the United States’ 421 special security case not be passed. In this way, Xie Diqi may have been working in this factory until retirement. However, both Fan Rende and Xu Wenying of the Rubber Association, and Shen Jinrong and Xu Youming, who share the same company with Xie Diqi, are not so optimistic. In their view, China's tire war has only just begun. Even if this special safeguard case is not passed, the United States will again raise the investigation of anti-dumping, which will play a role in curbing the export of Chinese products. More serious challenges are still waiting for all employees in this industry.

Shen Jinrong, Chairman of Hangzhou Zhongce Rubber Co., Ltd.: “The procedure for approval and the hearing process are also different, but the result is almost the same, that is, restricting the entry of a certain country’s goods.”

Reporter: "How many times have you encountered anti-dumping since you took office?"

Shen Jinrong: "No less than ten times, more than ten times, almost every year."

Shen Jinrong told the reporter that since the anti-dumping investigation was based on a third-country investigation as the basis for the cost investigation, the Chinese tire industry has never won a case in these large and small anti-dumping investigations. For the future development, Shen Jinrong believes that similar trade frictions and trade barriers are almost inevitable, and they will increasingly encounter such problems in the future. In addition to actively responding and defending, the long-term development is still to adjust the structure of tire production.

Shen Jinrong: “We are all in the R&D ratio. The sales revenue is 3% each year. It is hundreds of millions of investment, and several hundred million investment. For example, if we had sales value of more than 14 billion last year, it would be at least 4 The investment of more than a billion yuan in research and development is actually a very high R&D investment."

The screen is a new product research and development center of China Strategic, where experts from Germany, Japan, and other countries gather together. In this company, a new product designed by the R&D center will be put into production almost every two days.

"Compared with the average profit rate of all tire factories in the world, the average profit rate of Chinese tire companies is actually leading the world."

In the foreign trade warehouse on the outskirts of Haining, the reporter saw Cheng Wenlei, the porter who was loading the tires. This month, he went to work on the night shift to almost one or two o'clock in the evening to send home one day's goods.

"It was 2 o'clock yesterday. It was the day before yesterday."

Zheng Wenlei has overhauled the tires sent to the United States. At present, China is a major country for tire production and exports. In 2008, China’s tire production reached 350 million, of which 40% of the products were exported, and another 30% of export products were exported to the United States. Due to the news of the special security case, US dealers are expecting European tire prices to rise, so they are generally starting to hoard Chinese tires. Short-term orders sent to China have also surged.

Shen Jinrong: "I think it's true. I think that this kind of free economy must go with the flow. We must absolutely not artificially distort it. If we twist it for a certain amount of time, there will be problems. It is not just that the party we are sanctioned has problems. Sanctions will also have problems. He has no benefit at all, but he has to be affected and hurt."

Half-hour observation: Trade protection hurts people

In addition to the tire special security case, the U.S. Department of Commerce also conducted an anti-dumping and anti-subsidy merger investigation on a series of products such as oil well pipes produced in China. The amount of time and the amount of time involved in this series of China-related trade cases are rare in recent years.

It is normal for China and the United States, which are the second largest trading partners, to have some trade disputes and frictions. However, frequent trade restrictions are not only detrimental to Chinese companies, but in the end it will hurt the US economy itself. The United States Tire Industry Association, which represents the interests of various sectors of the US tire industry in production, sales, maintenance, and recycling, wrote a letter to President Barack Obama on July 10th, strongly demanding that the measures proposed for China's import of special tariffs on American tires be vetoed. The American Tire Industry Association believes that the first special case will not protect jobs in the U.S. manufacturing industry; second, it will raise tire prices, and in the current economic environment, it is equivalent to applying a “special punishment” to U.S. consumers. Third, it will lead to chaos in the US tire market; Fourth, US consumers may postpone the need to replace the tires, thereby bringing "potentially terrible consequences" to road safety in the United States.

In the global financial crisis of 1929, the United States, in order to seek self-protection, drastically increased the import tariffs on more than 20,000 kinds of foreign commodities, essentially stopping US imports. After rejecting imports from other countries, the United States has become the target of the protection of its neighboring countries. Global trade wars were out of control. U.S. exports dropped from about 5.2 billion U.S. dollars in 1929 to 1.2 billion U.S. dollars. In today's economic globalization, the world is flat. The production and manufacturing chain is laid out globally and is the result of market selection. Therefore, it is in the interests of the most people. If for the purpose of trade protectionism, deliberately destroying the chain, in the old saying, is to detrimental to others. From the standpoint of economic interests, this special case of tire protection is more like a farce. We hope it will end early and not cause a wrong trade war.

The external demand brought by the financial crisis has shrunk, and trade frictions have continued to increase. Right now, how to respond positively and build a protective dike that resists protectionism not only tests relevant companies, but also tests the wisdom of governments of all countries.
View related topics: China and the United States tire special security case


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