“We have already opened the meeting in the afternoon and several ministries and committees have listened to the views of the companies.†Yesterday evening, the head of a domestic tire company disclosed to the CBN reporter, the Ministry of Commerce, the Ministry of Industry and Information Technology (hereinafter referred to as “the Ministry of Industry and Information Technologyâ€), etc. The ministry convened a number of tire manufacturing companies to meet in Beijing for emergency and listen to their opinions.
On the evening of September 13, the person in charge of domestic tire manufacturing companies received notice of an emergency meeting of the Ministry of Commerce. Yesterday afternoon, the Ministry of Commerce and the Ministry of Industry and Information Technology jointly held a briefing in Beijing to inform the relevant domestic associations and tire manufacturing enterprises about the United States' application of special tire protection measures to China.
The CBN reporter learned that there were more than a dozen tire manufacturers participating in the conference, including Shandong Linglong, Hangzhou Zhongce Rubber, and Jiatong Tire, as well as US tire manufacturer Cooper and Korea Hankook Tire.
At the meeting, relevant departments reported on the negotiation process between the Chinese side and the US regarding the tire special security investigation; at the same time, they also listened to opinions of associations and enterprises.
Zhong Shan, vice minister of the Ministry of Commerce, pointed out at the meeting: “The government attaches great importance to the possible negative impact of this case on my related export enterprises, will listen to the company’s voices and suggestions, and take active measures to coordinate and solve problems encountered in the business operations. Make every effort to help companies overcome difficulties."
The relevant associations and enterprises recommend that the government increase the export tax rebate rate for tire products and reduce rubber import tariffs. At present, the export rebate rate for tires is 9%, and the import tariff for standard natural rubber is 20%.
On September 14, Yao Jian, spokesman of the Ministry of Commerce, also stated that China requires that the special safeguard measures for this time be negotiated with the US for WTO dispute settlement.
As of press time last night, Xinhua reported that the Chinese government officially initiated the WTO dispute settlement procedure on the 14th of the United States to restrict special safeguard measures for Chinese tire imports.
The request for consultation is the first step in the WTO dispute settlement process. The consultation period is generally 60 days. If the dispute cannot be resolved through consultations, the Chinese side has the right to take the second step, that is, to require the WTO to set up an expert group to investigate and decide on the US measures.
5 Company announcement "Special Protection Case" influence
Today, five listed companies in the Shanghai and Shenzhen markets issued separate announcements, which disclosed the impact of the special security case on the company.
The Qingdao Double Star announcement stated that in the first 8 months of this year, the income from the export of car tires and light truck tires to the United States was 42.15 million yuan (US$6.17 million), accounting for less than 2% of the company’s operating income for the same period; and a profit of approximately 1.68 million yuan, accounting for the same period of profit The total amount is less than 1%.黔 Tire A stated that in the first 7 months of this year, 120,000 tires were exported to the United States and sales were 5.71 million US dollars, accounting for 1.56% of the company’s total operating income for the same period. The direct impact of the special security case on the two companies is not very great.
However, both companies stated that the matter will inevitably intensify the competition in the domestic tire market and may adversely affect the company's tire exports to other countries. The specific impact is hard to predict.
The most affected is S.Getter. The company’s announcement states that in 2008, US-based tires accounted for approximately 1/4 of its annual sales revenue. This “special protection case†is expected to generate future sales for the company in the US market. The adverse impact, the specific impact amount cannot be estimated accurately at present.
Fengshen shares and Shuangqian shares all stated that they mainly produce heavy-duty tires and construction machinery tires. The tires exported to the United States and other countries are mainly based on heavy-duty tires and are not subject to this US taxation.
On the evening of September 13, the person in charge of domestic tire manufacturing companies received notice of an emergency meeting of the Ministry of Commerce. Yesterday afternoon, the Ministry of Commerce and the Ministry of Industry and Information Technology jointly held a briefing in Beijing to inform the relevant domestic associations and tire manufacturing enterprises about the United States' application of special tire protection measures to China.
The CBN reporter learned that there were more than a dozen tire manufacturers participating in the conference, including Shandong Linglong, Hangzhou Zhongce Rubber, and Jiatong Tire, as well as US tire manufacturer Cooper and Korea Hankook Tire.
At the meeting, relevant departments reported on the negotiation process between the Chinese side and the US regarding the tire special security investigation; at the same time, they also listened to opinions of associations and enterprises.
Zhong Shan, vice minister of the Ministry of Commerce, pointed out at the meeting: “The government attaches great importance to the possible negative impact of this case on my related export enterprises, will listen to the company’s voices and suggestions, and take active measures to coordinate and solve problems encountered in the business operations. Make every effort to help companies overcome difficulties."
The relevant associations and enterprises recommend that the government increase the export tax rebate rate for tire products and reduce rubber import tariffs. At present, the export rebate rate for tires is 9%, and the import tariff for standard natural rubber is 20%.
On September 14, Yao Jian, spokesman of the Ministry of Commerce, also stated that China requires that the special safeguard measures for this time be negotiated with the US for WTO dispute settlement.
As of press time last night, Xinhua reported that the Chinese government officially initiated the WTO dispute settlement procedure on the 14th of the United States to restrict special safeguard measures for Chinese tire imports.
The request for consultation is the first step in the WTO dispute settlement process. The consultation period is generally 60 days. If the dispute cannot be resolved through consultations, the Chinese side has the right to take the second step, that is, to require the WTO to set up an expert group to investigate and decide on the US measures.
5 Company announcement "Special Protection Case" influence
Today, five listed companies in the Shanghai and Shenzhen markets issued separate announcements, which disclosed the impact of the special security case on the company.
The Qingdao Double Star announcement stated that in the first 8 months of this year, the income from the export of car tires and light truck tires to the United States was 42.15 million yuan (US$6.17 million), accounting for less than 2% of the company’s operating income for the same period; and a profit of approximately 1.68 million yuan, accounting for the same period of profit The total amount is less than 1%.黔 Tire A stated that in the first 7 months of this year, 120,000 tires were exported to the United States and sales were 5.71 million US dollars, accounting for 1.56% of the company’s total operating income for the same period. The direct impact of the special security case on the two companies is not very great.
However, both companies stated that the matter will inevitably intensify the competition in the domestic tire market and may adversely affect the company's tire exports to other countries. The specific impact is hard to predict.
The most affected is S.Getter. The company’s announcement states that in 2008, US-based tires accounted for approximately 1/4 of its annual sales revenue. This “special protection case†is expected to generate future sales for the company in the US market. The adverse impact, the specific impact amount cannot be estimated accurately at present.
Fengshen shares and Shuangqian shares all stated that they mainly produce heavy-duty tires and construction machinery tires. The tires exported to the United States and other countries are mainly based on heavy-duty tires and are not subject to this US taxation.
Review China's tire industry: Can't put eggs in a basket
The U.S. government announced that it has taken special safeguard measures against Chinese tire exports to the United States. This has caused international media's unanimous criticism. As China's tire exports to the United States involve 100,000 industrial workers, China’s rebound has been very strong and it has quickly adopted trade countermeasures against the United States. Some auto products and broilers started anti-dumping and countervailing investigation procedures.
The protectionism promoted by the U.S. government has been widely criticized by various parties. However, for the time being, this will not be discussed. The Chinese tire industry is also worth reviewing. For example, exports to a U.S. country reach one-third of the total output. This trade pattern is very fragile. Once the U.S. market is hit by an accident, such a large capacity cannot be digested domestically in the short term, and the entire industry will Faced with overcapacity, companies that do not export or export a small percentage may also be involved in a "price war."
China's tires exhibit typical "two out" features, that is, raw materials (mainly natural rubber and synthetic rubber) rely on overseas imports, and the products are sold overseas. At present, the overseas dependence of China's natural rubber has reached 75%, far higher than that of crude oil and iron ore, which are both important commodities and important strategic materials. After rubber is imported into China, it is processed into tires and exported as low-end brands. To overseas. In the field of tire production, China is still a “world factory†and has low bargaining power. It can only earn meagre processing profits at the bottom of the industrial chain. This is a typical portrayal of “Made in Chinaâ€.
Obviously, the troubles of the Chinese tire industry are coming, even though in the first half of the year, the tire industry was the big winner in the financial crisis.
Thanks to the breakdown of the commodity bubble, the prices of natural rubber and synthetic rubber, the raw materials for tires, have fallen more than half of last year's peak. The spot price of Hainan's natural rubber was 27,100 yuan/ton in July last year, and it has dropped to 13,677,000 yuan/ton in January this year, the lowest level since 2003. The trend of futures price and spot price are consistent, which makes the tire cost significantly reduce. Secondly, China’s auto sales have seen “blowouts†this year. Even in the traditional off-season in August, the number of home-made cars exceeded one million once again. Since March this year, it has exceeded the one-million mark for six consecutive months. The cost reduction and strong market demand have made China's tire industry usher in years of “happy times†that are hard to see.
The financial statements of a group of listed companies can best explain the problem: First-half net profit increased by 122% year-on-year in the first half of the year; Qingdao Doublestar's net profit increased by 175% year-on-year; S-Gate's semi-annual report was the most brilliant, with a year-on-year increase of 630.60% in net profit. Since the beginning of this year, Yantai Tire A has gained more than 259%, Qingdao Doublestar has gained more than 224%, and Sigaton has gained more than 138%, far exceeding the 64% gain of the Shanghai Composite Index over the same period.
The question now is: Will the tire industry's brilliance in the first half of the year continue to face the greatest uncertainty in the special security case? What should be done to avoid the hassle that has arisen?
It is imperative that the tire industry in China should adjust its export strategy, reduce its dependence on the single US export, and increase exports to emerging markets such as Russia, Egypt, and Mexico. Nowadays, Chinese car manufacturers are keen to establish overseas factories. The above locations are also popular choices. Chinese tires are exported to these places and can form a positive interaction with Chinese automobile factories, reduce trade friction, and form a completed industrial chain together with automobile factories.
At least 40% of tire products are used for export when raw material rubber has an external dependency of 75%. This production model should also be worth reviewing. Whether the tire industry should be included in the "two high and one capital" (high pollution, high energy consumption, resources) is still controversial, but the production of a large number of waste water and waste gases in the production process is undoubtedly doubtless, does not meet the "low-carbon economy" and "green economy" The spirit of the times, in view of this, under the premise of maintaining the current scale of the tire industry, such "Made in China" products should not be blindly expanding exports.
China’s auto market is huge. In the first 7 months of this year, the sales volume of Chinese automobiles surpassed that of the United States, ranking first in the world, and there is still much room for growth in the future. This indicates a bright future for the Chinese tire market. However, this does not match the fact that none of the top 10 tire companies in the world has a Chinese company, and the top 10 tire giants have chosen to “staking their claims†without exception in China. Compared with imported tires, domestic tires still have a small difference in performance. Therefore, Chinese tire companies can no longer use the “cheap†signboards. They should follow the international standards to improve their technical level and safety level, and first stabilize the domestic market. , and then attack the international market, not the other way around.
The U.S. government announced that it has taken special safeguard measures against Chinese tire exports to the United States. This has caused international media's unanimous criticism. As China's tire exports to the United States involve 100,000 industrial workers, China’s rebound has been very strong and it has quickly adopted trade countermeasures against the United States. Some auto products and broilers started anti-dumping and countervailing investigation procedures.
The protectionism promoted by the U.S. government has been widely criticized by various parties. However, for the time being, this will not be discussed. The Chinese tire industry is also worth reviewing. For example, exports to a U.S. country reach one-third of the total output. This trade pattern is very fragile. Once the U.S. market is hit by an accident, such a large capacity cannot be digested domestically in the short term, and the entire industry will Faced with overcapacity, companies that do not export or export a small percentage may also be involved in a "price war."
China's tires exhibit typical "two out" features, that is, raw materials (mainly natural rubber and synthetic rubber) rely on overseas imports, and the products are sold overseas. At present, the overseas dependence of China's natural rubber has reached 75%, far higher than that of crude oil and iron ore, which are both important commodities and important strategic materials. After rubber is imported into China, it is processed into tires and exported as low-end brands. To overseas. In the field of tire production, China is still a “world factory†and has low bargaining power. It can only earn meagre processing profits at the bottom of the industrial chain. This is a typical portrayal of “Made in Chinaâ€.
Obviously, the troubles of the Chinese tire industry are coming, even though in the first half of the year, the tire industry was the big winner in the financial crisis.
Thanks to the breakdown of the commodity bubble, the prices of natural rubber and synthetic rubber, the raw materials for tires, have fallen more than half of last year's peak. The spot price of Hainan's natural rubber was 27,100 yuan/ton in July last year, and it has dropped to 13,677,000 yuan/ton in January this year, the lowest level since 2003. The trend of futures price and spot price are consistent, which makes the tire cost significantly reduce. Secondly, China’s auto sales have seen “blowouts†this year. Even in the traditional off-season in August, the number of home-made cars exceeded one million once again. Since March this year, it has exceeded the one-million mark for six consecutive months. The cost reduction and strong market demand have made China's tire industry usher in years of “happy times†that are hard to see.
The financial statements of a group of listed companies can best explain the problem: First-half net profit increased by 122% year-on-year in the first half of the year; Qingdao Doublestar's net profit increased by 175% year-on-year; S-Gate's semi-annual report was the most brilliant, with a year-on-year increase of 630.60% in net profit. Since the beginning of this year, Yantai Tire A has gained more than 259%, Qingdao Doublestar has gained more than 224%, and Sigaton has gained more than 138%, far exceeding the 64% gain of the Shanghai Composite Index over the same period.
The question now is: Will the tire industry's brilliance in the first half of the year continue to face the greatest uncertainty in the special security case? What should be done to avoid the hassle that has arisen?
It is imperative that the tire industry in China should adjust its export strategy, reduce its dependence on the single US export, and increase exports to emerging markets such as Russia, Egypt, and Mexico. Nowadays, Chinese car manufacturers are keen to establish overseas factories. The above locations are also popular choices. Chinese tires are exported to these places and can form a positive interaction with Chinese automobile factories, reduce trade friction, and form a completed industrial chain together with automobile factories.
At least 40% of tire products are used for export when raw material rubber has an external dependency of 75%. This production model should also be worth reviewing. Whether the tire industry should be included in the "two high and one capital" (high pollution, high energy consumption, resources) is still controversial, but the production of a large number of waste water and waste gases in the production process is undoubtedly doubtless, does not meet the "low-carbon economy" and "green economy" The spirit of the times, in view of this, under the premise of maintaining the current scale of the tire industry, such "Made in China" products should not be blindly expanding exports.
China’s auto market is huge. In the first 7 months of this year, the sales volume of Chinese automobiles surpassed that of the United States, ranking first in the world, and there is still much room for growth in the future. This indicates a bright future for the Chinese tire market. However, this does not match the fact that none of the top 10 tire companies in the world has a Chinese company, and the top 10 tire giants have chosen to “staking their claims†without exception in China. Compared with imported tires, domestic tires still have a small difference in performance. Therefore, Chinese tire companies can no longer use the “cheap†signboards. They should follow the international standards to improve their technical level and safety level, and first stabilize the domestic market. , and then attack the international market, not the other way around.
View related topics: China and the United States tire special security case
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