Exclude Chinese tires Will the US tire industry be smooth?
As China's auto market enters a period of deep adjustment under the new normal, the “sea-going†of parts and components industry is also facing difficulties.
Recently, some media reported that according to the final results of the United States International Trade Commission on July 27, 2015, the anti-dumping anti-subsidy investigation of passenger cars and light truck tires originating in China was finalized; this means that Chinese tire manufacturers will be subject to high anti-dumping duties and countervailing duties on their exports to the United States. According to the final ruling of the US Department of Commerce on June 12 this year, this tax rate should be 14.55% to 87.99% of anti-dumping duties and 20.73% to 100.77% of countervailing duties.
Does this mean that the United States once again "passes off" Chinese tire car companies through trade protection measures? In this race of high-tax rates dominated by trade protection thinking, does China's tire industry become the biggest loser?
Chinese tire companies are in crisis and have become established facts.
As the largest exporter of Chinese tires, the strict policy of the US market naturally made Chinese forum enterprises “very injuredâ€.
According to statistics released by China Customs, China exported 220 million tires in the first half of this year, a decrease of 3.2% from the same period of last year, and this decline was affected by the US market; among the major exporting countries, 38.25 million were exported to the United States. The rate of decline has reached 19.1%. Industry analysts believe that with the U.S. government's full implementation of the final results, the Chinese tire industry is about to enter the "winter season" of exports.
Some analysts pointed out that for most of China's tire companies, two high tariffs overlap, which means that the US market may be closed or closed, and some companies will also face the test of life and death. Industry data shows that China’s passenger car and light truck tires are highly dependent on the U.S. market, and 40% of China’s tire production needs to be exported, of which the US is the major export market for tires in China and accounts for about a quarter of China’s total tire exports. .
At the same time, the continued sluggish demand in China's auto market does not "make up" the loss of exports to the United States. Following the first decline in production and sales in the past six years in May this year, the Chinese auto industry continued to deteriorate in June. At the beginning of this year, the China Association of Automobile Manufacturers had predicted that the sales volume of the Chinese auto market will increase by 7% this year; however, at the beginning of last month, Dong Yang, Executive Vice President and Secretary General of the China Association of Automobile Manufacturers, stated that according to the market situation in the first half of the year, China The Auto Group reduced its car growth this year to 3%.
The Bloomberg News website also reported on August 3 that in 2009, driven by strong demand, China surpassed the United States to become the world’s largest auto market, prompting auto giants such as Ford Motor Company and Volkswagen Company to compete in the country. Load production. In contrast, Ford Motor Company now faced the possibility of the first decline in auto sales in China in 17 years. In the first half of 2015, Volkswagen’s sales fell for the first time in 10 years.
According to the report, Spain’s Foreign Bank stated that the auto industry’s impact on suppliers is second only to the real estate industry. Therefore, this weak industry may aggravate the downward trend of the manufacturing industry. China’s Manufacturing Purchasing Managers Index fell to its lowest level in five months in July.
"China's tire industry mainly targets low-end and middle-end tires, and it has a dominant price advantage. In recent years, Europe and the United States have continuously raised the entry threshold and regulatory restrictions for the tire industry, and they have also experienced constant trade frictions with China." For a time, the future prospects for the Chinese tire industry have also been met. At this time, the United States held high the "trade stick" influence.
But it is worth pondering that among the trade frictions, the United States, which has collected a high tax revenue from China's tire industry, is a well-deserved winner. It runs counter to the spirit of globalization of world trade, and “blocks†Chinese tires outside the United States. Can the tire industry develop smoothly?
The answer may be negative.
Just as the current Obama administration said "no" to Chinese tire companies, Chinese tire companies have increased their integration with European companies almost at the same time. On August 5, the Milan Stock Exchange issued an announcement that the purchase of Pirelli by China National Chemical Corporation has been approved and the parties will complete the transaction on August 11.
On March 22 this year, China Chemical signed an agreement with China's Camfin Corporation and its shareholders through a wholly-owned subsidiary, China National Chemical Rubber Co., Ltd., to acquire the other side's Pirelli 26.2% for 7 billion euros (about 47 billion yuan). All shares. The above agreement shows that after the acquisition is completed, China Chemical will become Pirelli’s largest single shareholder, and the ultimate shareholding ratio may be as high as 65%.
At the end of Obama's term of office, the U.S. government’s trend of trade protectionism prevailed. On the one hand, it protected the country’s market from “invasion†by foreign brands, but it also lost a lot of opportunities to strengthen and expand domestic companies through mergers and acquisitions with foreign investors. The spirit of "cooperation and win-win" that was originally emphasized by the WTO has become an irresistible display for Washington politicians who focus on short-term interests and the protection of their own labor force.
The East does not shine brightly in the West, and the United States has set a high threshold for the Chinese tire industry through dual anti-final sanctions, but it cannot stop the Chinese tire industry from strengthening its determination through deep integration of the global industrial chain, but in a new wave of investment. In the United States, the United States will no longer be the preferred choice for Chinese companies.
The United States has imposed a high tax rate on the final ruling, which on the surface has protected the tire industry in the country. In the long run, it has also broken many “backroads†for domestic tire companies.
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