China will take further measures against tire ** case

On September 5, the World Trade Organisation Appellate Body issued a ruling on the Sino-U.S. tire trade dispute case and determined that the United States imposed punitive tariffs on Chinese tires imported into the United States in line with WTO rules.

On the 6th, the person in charge of the Treaty and Law Department of the Ministry of Commerce said. China will urge the United States to terminate its special safeguard measures as soon as possible to ensure a fair competition environment for Chinese companies.

“This morning, the China Rubber Industry Association has begun to prepare related materials.” Cai Weimin, secretary general of the tire division of the China Rubber Industry Association, told reporters that China should take further measures against the WTO's unfair verdict.

The reporter then contacted the China Rubber Industry Association. A person in charge said: "At present, it is not convenient to express opinions. There will be a uniform interpretation later."

The special security rules are vague as security measures specifically targeted at China. The low threshold for investigation and prosecution of special security cases and the vague definition of damage are particularly difficult to deal with.

“According to the normal damage standards, we must prove that there has been a huge increase in product imports, market share has been squeezed by imported products, and the industry has been seriously damaged. Under the framework of the special insurance law, the threshold for damage is very low, and the imported products lead to Measures can be taken if the domestic market is affected or even disrupted,” said Pu Lingchen, a partner and well-known countervailing lawyer of Beijing Zhong Lun Law Firm.

In a letter to U.S. President Barack Obama, the China Rubber Association stated that the products imported by China from the United States did not experience rapid growth.

From 2007 to 2008, the proportion of tyres imported from China which accounted for actual consumption in the United States increased by only 2.7% over the same period. Even according to the data provided by the applicants, the proportion of actual consumption in the United States only increased by 3.5% over the same period. Therefore, the data provided by the applicant does not prove the existence of rapid growth.

In the questionnaire issued by the US International Trade Commission, four major U.S. manufacturers believe that the tyres imported from China were not the cause of substantial damage in the U.S. market, and the other four said they could not answer. This also became the reason why the United States Tire Industry Association and distributors expressed opposition to the special security case.

Empowering Emerging Markets If the United States imposes a 55% high tariff on Chinese tires, it means that Chinese tire products will be rejected.

The impact of high tariffs has begun to show. According to data from the Ministry of Commerce, in 2010, the number of tires imported from China by the United States fell by 23.6% compared with 2009. In the first half of 2011, imports continued to decline by 6% year-on-year.

At the same time, the number of tires imported from the United States in 2010 from the world increased by 20.2% compared with 2009. In the first half of 2011, imports continued to increase by 9% year-on-year.

Cai Weimin stated that the United States has implemented special protection for Chinese passenger tires. Its original intention was to increase the production of tires in the United States and increase the employment rate in the United States. However, the actual result was that the number of tire imports not only did not decrease, but also increased, and the employment rate did not increase. .

He said that after the implementation of the special safeguard case, the U.S. demand for Chinese tires has not dropped by itself, but because of the high tariffs, Chinese tires have been kept out of doors, but the number of tires imported from South Korea, Japan, Mexico, and Southeast Asian countries It has reached a high level of history.

According to estimates by the Rubber Association, 40% of tires produced in China are exported, and one third of them are exported to the United States. If the maximum tariff of up to 55% is levied, this means that China's tire products will not be exported to the United States. This will affect the employment of about 100,000 workers and lose about 1 billion US dollars worth of exports.

However, Cai Weimin said that the current special security case has been implemented for two years. By September 26 this year, the tariff will be reduced from 35% to 25%, and only one year will remain. The WTO ruling has not affected the industry as much as it began.

“In recent years, the quality of Chinese export tires has been continuously improving. Foreign consumers are generally welcoming to Chinese tires, and Chinese tire companies have successfully opened up new markets in these two years, and the total tire export volume has maintained a moderate growth,” said Cai Weimin.

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