“Chinese tire makers are quitting from US market. You wouldn’t see Chinese tires there as soon as two months later,” an insider in a famous Chinese tire company told the reporter from Tireworld.
Tire makers disappoint on US government
US commerce department appointed another two Chinese tire companies and their related companies as mandatory respondents on its anti-dumping investigation on Aug.27,2014.
The mandatory respondents include Shandong Yongsheng Rubber Group,Giti Tire Global Trade Co.,Ltd., Giti Tire (America) Co.,Ltd., Giti Tire (Anhui) Co.,Ltd., Giti Tire (Fujian) Co.,Ltd., and Giti Tire (Hualin) Co., Ltd..
In the latest anti-subsidy investigation, the US commerce department has named two Chinese tire producers, Shandong Yongsheng Rubber Group and Fujian Giti Tire Co.,Ltd, as mandatory respondents and requested them to respond to its quantity and value questionnaires on Aug.14,2014.
Analysts said that it is definitely for US government to collect high punitive tax on Chinese tires, whatever the result of anti-subsidy and anti-dumping investigations is.
Shandong Yongsheng Rubber Group, China’s biggest tire exporter to US, has been reducing its daily production since the investigation started. It is predicted that China’s tire export to US had been decreased 1/3 since then, an insider in Shandong tire company told the reporter from Tireworld.
High tax cuts China tire’s living room
Until now, China’s tire is still aiming at US replacement tire market via low price. Taking companies in Guangrao Shandong province, there are over 70 companies involved in the investigation, posting 1.71 billion dollars of export value, which accounts for 51.3% of China’s tire export, said the insider in Shandong tire companies.
In 2009, US’s special safeguard investigation on Chinese tires has ever led Chinese export to US decreasing over 50%.
Once anti-subsidy and anti-dumping tax (60% tax rate) is confirmed, it would totally squeezed Chinese tire’s profit, said the insider.
(By Amanda, mol@tireworld.com.cn)
