Anti-dumping investigation on tyres originating in China originating from 10 countries including Argentina

Business News (Reporter Wang Hao) tire industry has become China's hardest hit by trade remedy surveys. The Ministry of Industry and Tourism of Argentina has announced that it will launch anti-dumping investigations on tires originating in China. More than 10 countries, including Argentina, have initiated trade remedy investigations on tires produced in China.

The review report submitted by the relevant authorities in Argentina held that the dumping margin of Chinese tyres in the Argentinean market was 165%. Therefore, there was evidence of anti-dumping investigations on tyres imported from China. The objects of this anti-dumping investigation include tires for passenger cars, passenger cars, trucks and agricultural and forestry vehicles originating in China.

How many tire companies in China will be affected by this? Xu Wenying, deputy secretary-general of the China Rubber Industry Association, said that "at present, there is no exact figure."

In September, the final case of the special tire protection program for US tires was passed. China's tires were immediately squeezed in the US market and companies faced market shifts. "But the Argentina anti-dumping investigation was not triggered by the transfer of Chinese tires from the United States to the local market." Shandong Linglong Group exports 10% of its tires to Argentina every year. Overseas marketing director of the group, Wang Guomei, told reporters After the special security case, most of the domestic enterprises involved in the case began to transfer the market to the Middle East and Africa. The trade environment in South America is not very good and Argentina does not belong to the newly opened market.

In June this year, the Brazilian Foreign Trade Commission decided to impose anti-dumping duties on passenger and truck tires imported from China. Wang Guomei believes that “Argentina is very likely to follow the example of a neighboring country.” Cheng Dawei, chief expert of the Beijing WTO Affairs Center, said that if a country adopts trade protection measures for certain imported products, another country in a similar trading environment will also initiate investigations and form a "learning effect."

Xu Wenying said that the special security case has led to an overall decline in the export volume of tire companies. The tire industry has become a hard-hit area for China to suffer trade remedy investigations. According to report, as of now, China’s tires have been successively investigated from Venezuela, Australia, Brazil, Peru, Egypt, Turkey, South Africa, Mexico, the United States, Argentina, India, and Other countries. The products involved are from automobile tires and motorcycle tires. Low-value-added products spread to high value-added products such as heavy-duty radial tires and engineering tires.

Related News China requested WTO Group of Experts investigating the tires safeguard

According to Xinhua News Agency, the Chinese government yesterday asked the World Trade Organization to set up an expert group to investigate the special safeguard measures taken by the United States against Chinese tire imports to the United States.

At the meeting held on the same day by the WTO Dispute Settlement Body, the Chinese delegation stated that the U.S. government announced on September 11 the implementation of a three-year punitive tariff on passenger cars and light truck tires imported from China. The special safeguard measure was adopted after succumbing to the pressure of domestic trade protectionism. This approach deviated from the international consensus of avoiding protectionist measures in the context of the financial and economic crisis and caused damage to the interests of both countries. In addition, the U.S. government made the above-mentioned tariff increase decision without a factual basis, and therefore violated the relevant regulations in the WTO.

Although at the meeting of the day, China proposed to the WTO to set up an expert group, but the United States prevented the establishment of the expert group in accordance with relevant procedures. At the next meeting of the WTO Dispute Settlement Body to be held on January 19 next year, the Chinese side can again request the establishment of an expert group. By then, the US will not have the right to stop again. Therefore, the expert group will be established automatically.

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