The Chinese side lost the case of the hottest tire

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On September 5, the WTO Appellate Body issued a ruling report on the WTO dispute case of China v. the U.S. tire safeguard measures, maintaining the U.S. tire safeguard measures, and China lost the lawsuit. This is the end of the first and largest case against China in the Obama era. The review of 2015 pointed out that China's failure in the lawsuit means the success of a new round of Global trade protectionism and a heavy blow to free trade. The China-U.S. tire warranty case can be regarded as a weathervane of the U.S. trade policy towards China, so this first case of Sino-U.S. trade friction has attracted the attention of Chinese people. Although China lost the lawsuit, American trade protectionism 4 The gain will not be worth the loss when loading. The loss of the lawsuit has a significant impact on China's tire industry, but it also brings opportunities for industrial upgrading and integration within the industry

■ the prospects of tire export enterprises are not optimistic

the WTO Appellate Body rejected all China's appeals on September 5, holding that the transitional special safeguard measures taken by the United States on tires imported from China did not violate the rules of the organization. In December, 2010, the WTO Arbitration Commission ruled that the statement of the United States International Trade Commission (ITC) that "the rapid increase in the number of imported tires in China between 2004 and 2008 led to the impact on the tire industry" was tenable. The Chinese side expressed dissatisfaction with the ruling and then appealed

after China lost the lawsuit, the Ministry of Commerce expressed great regret. Since the WTO recognized the tire special protection case, not only in the tire industry, but also in the world is likely to start to adopt a series of anti-dumping programs for China's exports. The situation of China's export enterprises is not optimistic

this "special tire protection case" will inevitably cause serious obstacles to China's export of tires, which will no longer be exported to the United States. It is expected that about 30 domestic tire enterprises will reduce or stop production, which will affect the output value of China's tire industry of 2.2 billion US dollars, and about 100000 tire workers will be affected. Although Chinese government departments and tire enterprises have taken different measures to actively respond, they have not achieved the expected results. China's exports of passenger car tires and light truck tires to the United States are basically stagnant

at the same time, this case has played a very bad "demonstration" role in the industry. Since the United States proposed to the U.S. International Trade Commission in April 2009 to carry out a special warranty investigation on passenger tires and light truck tires exported from China to the United States, India also proposed to carry out a special warranty investigation on Chinese imported tires in May, while raising the threshold of tire import standards. Brazil has also implemented anti-dumping on China's tires, raising tariffs from June 18

■ losing the lawsuit will lead to the continuous rise of tire prices

it is reported that the direct effect of this event may be the continuous rise of tire prices. Yuanyuntao, manager of the international marketing department of South China tire company, said that he had quickly started to formulate countermeasures, including coordinating other emerging export markets to adjust export strategies. But in this way, it may face the high risk of losing the market. Previously, many domestic tire enterprises have begun to reduce the proportion of tire exports to the United States this year in response to the possible imposition of "special tariffs" by the United States. As the high-performance tires of Chinese manufacturers such as South China tires occupy a major share in the mid-range market in the United States, if the export volume of Chinese enterprises decreases sharply, the tires in the U.S. market must be "in short supply", which will create room for Japanese and Korean enterprises to raise prices, so Chinese enterprises also have to re formulate pricing strategies

■ it is difficult to say whether the United States will benefit from this.

the data shows that in the past more than a year since the China US special tire warranty case, the tires imported by the United States from China decreased by 23.6% in 2010 compared with 2009, and further decreased by 6% in the first half of 2011. However, the total number of tires imported from the United States in 2010 increased by 20.2% over 2009, and increased by 9% in the first half of 2011. These data are enough to show that the previous Chinese tires exported to the United States did not threaten the relevant U.S. enterprises, but the U.S. special safeguard measures have seriously damaged the interests of Chinese enterprises

although China is the victim of this case, it is still uncertain whether the United States can really become the beneficiary. Since the implementation of the special safeguard measures, the employment rate of the U.S. tire industry has not increased but decreased. According to the data of some domestic institutions in the United States, the average price of tires in the United States has increased by 10% to 20%. Although tire prices are also affected by other factors such as rubber costs, the imposition of tariffs is clearly an important reason for the rise in tire prices

■ China's tires usher in the opportunity of industrial upgrading

trade experts pointed out that the result of the tire special warranty case may not change, but for China's tire industry, how to deal with it is the top priority

the suggestions given by experts are, first of all, to strictly eliminate the domestic tire industry. In recent years, there are a lot of tire enterprises, but they hardly have their own brands. In order to seize the international market, enterprises have reduced their products by a large margin, resulting in vicious disorder and fierce competition. Especially in recent years, the export price of tires has fallen by nearly half, which has become an important evidence of foreign anti-dumping of our tires

secondly, we should "streamline and reorganize" qualified enterprises. Since 2005, both developed countries and emerging economies have launched several anti-dumping investigations on China's exported tires. The reason is closely related to too many qualified enterprises. Too many export qualified enterprises are easy to fight in order to seize the market. Therefore, it is necessary to reduce the qualified enterprises of exported tires, solve the problem of internal fighting and internal friction, and finally form a good situation of consistency with the outside world

third, we should adjust the industrial structure and realize industrial upgrading. For a long time, China's tire exports have been at the lowest end of the industrial chain, and have been winning by low prices. It is precisely because of low prices to occupy the market that they are repeatedly labeled as dumping. Low prices not only leave pollution and labor problems at home and give welfare abroad, but also encounter difficulties in international trade. To change the "two thankless" 1. The function of the reducer in the tension machine, which forces China to adjust the industrial structure of the scaffold fastener safety testing machine tire industry as soon as possible, realize technological upgrading, improve the content of science and technology, and strive to develop the international high-end market. From this perspective, losing a lawsuit may not be a good thing

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