China's tire companies first victory special security case why indifferent Shandong companies?

After marathon lawsuits, Chinese tire companies finally fell to the US Department of Commerce. Under the background that domestic enterprises have been suppressed by the United States Tyre “Special Security Case”, the success of this case will undoubtedly have certain demonstration effects for domestic enterprises to safeguard their own rights and interests. However, according to feedback from the Economic Herald reporter, many enterprises in Shandong have been quite “indifferent” to this, and it is worth thinking deeply.

On August 5, 2010, the US International Trade Tribunal formally ruled that China Hebei Xingmao Company and Tianjin United Tire and Rubber Company sued the US Department of Commerce for double taxation. The US Department of Commerce imposed anti-dumping measures on certain non-road tires produced in China. Taxes and countervailing duties are illegal and must be stopped.

In this regard, a staff member of the planning department of a large-scale tire company in Zhaoyuan City, Shandong Province, told the reporter that most of its tires exported by the company were radial tires and other road tires, and non-road tires accounted for only a small percentage. The US Department of Commerce lost the lawsuit with it. The company "has no direct relationship and does not affect overall sales at all."

The person in charge of a tire company in Qingdao City said “relaxedly” that since 2010, despite the impact of the US tire special security case, the company's tire exports have still increased by 45 percent. “Some international lawsuits are appropriate, they are not suitable. If you don't fight, small troubles like this are not worth mentioning."

Many companies stated that the world market is very large and “the east is not bright in the west”. There is not much problem in the sales of products through adjusting the market structure and product structure.

Zheng Yongxiang, vice chairman of Shandong Rubber Industry Association, said that this phenomenon is indeed more common. He analyzed that at present, the tire enterprises in our province still belong to the "weak groups", and they lack the financial resources and ability to fight international trade lawsuits. If you cannot afford international lawsuits, you must adopt a strategy of avoiding war. Under the premise that there is no guarantee of stability and success, most of the companies involved have chosen to endure in disregard for the international lawsuits that are "less relevant" to themselves. It is worth mentioning that Hebei Xingmao is the sole proprietorship of the United States’ parent company in China. From the emotional point of view, the mentality of its winning and the pure ethnic enterprise's victory to the Chinese people is completely different. In addition, in the past decade or so, China’s tires have repeatedly suffered various trade barriers, lawsuits, and sanctions. As companies gradually become “strange”, their ability to resist risks has also increased.

According to incomplete statistics, since the September 2009 US tire special protection case, more than 10 countries have submitted anti-dumping and countervailing investigations to Chinese tire exporters. According to customs statistics, in the first 7 months of 2010, Shandong tires exported 2.446 billion U.S. dollars, an increase of 49% over the same period of last year. Shandong tire exports have gradually changed from the former mainly relying on the U.S. market to the U.S. and U.S. markets, while the Latin American, African, and Southeast Asian markets have taken the same diversified pattern. Many companies have gradually gotten rid of “special insurance” by developing high-tech new products. The impact of the case.

It is understood that this incident originated from the "Oolong" that the U.S. Department of Commerce created. On July 30, 2007, the U.S. Department of Commerce initiated anti-dumping and anti-subsidy investigations on certain non-road tires originating in China and announced the final outcome on September 5 of the following year. Anti-dumping and countervailing duties. The Hebei Xingmao, Tianjin United, etc. involved in this case subsequently filed a lawsuit with the US court, "challenging" the above decision.

According to this court ruling, the U.S. Department of Commerce’s practice constitutes double taxation. Because the countervailing duty is a tax type for market economy countries, and the US Commerce Department regards China as a "non-market economy country," it must abandon the countervailing duty on Chinese products.

Zheng Yongxiang said that this is a practice that the US Department of Commerce has often adopted in many cases similar to those targeting Chinese products. He also reminded that with the decline in domestic car sales, tire companies have to cut prices, and rubber and other raw materials prices have skyrocketed, resulting in the loss of the entire industry close to 40%. Many companies put their “treasures” on exports, but the international market is also in danger. Although many companies have increased their sales, their profits have fallen sharply, and some companies have been able to sustain their efforts to maintain their operations. “In this situation, the Shandong enterprises can no longer care less about international lawsuits and swallow up. If there is a hope of winning, we must do our part."

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