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On September 2, a secret report will appear on the desk of US President Barack Obama. It marks the final stage of China's entry into the United States on special tire protection for tires, and the Chinese side also sent a delegation to Washington to do the final mediation. On August 31, Xu Wenying, deputy secretary-general of the China Rubber Industry Association, told reporters that the Chinese Ministry of Commerce will have a delegation to negotiate on the same day.
According to the U.S. investigation procedure, after consulting with the U.S. Department of the Treasury and the U.S. Department of Labor, U.S. Trade Representative’s Office will propose a secret proposal to Obama by September 2. Obama can choose any of the Sept. 3-17. One day, the ruling decided whether or not to take measures to impose a punitive tariff of up to 55% on China-related tires exported to the United States. In other words, every day from September 2nd, the jobs of 100,000 workers in China's tire industry may be broken by the final ruling made by Obama.
Earlier, the United Steel workers filed a complaint saying that the influx of a large number of cheap Chinese tires in recent years had caused the union’s more than 5,000 members to lose their jobs.
Obama will face a dilemma. If he stands on the side of the US steel workers, he will face the protectionist accusations and even the risk of a trade war. On the side of China, he may offend some of the American voters.
The last mediation
On August 31, Xu Wenying, deputy secretary-general of the China Rubber Industry Association, told reporters that the Chinese Ministry of Commerce will have a delegation to negotiate on the same day. "This may be the last time before Obama made a decision." Xu Wenying said. Xu Wenying represented the Chinese tire industry in August and went to Washington to participate in the tire special security case hearing and testified on the spot.
After the U.S. hearing ended, Chinese companies and associations have been anxiously waiting for the final result. "We asked the lobbying company to continue doing its job. But the final result is not what we can control. It is Obama who is making trade-offs." However, I think the Chinese government will not be so weak. We will also have corresponding measures." Xu Wenying said.
It is not yet clear how China’s Ministry of Commerce will communicate with the United States at the last minute, but it is certain that for the Obama administration, the voice from China cannot be ignored either.
The United States tire special protection measures have caused widespread unease in many domestic industries in China. Leaders of some industry associations have come forward and called for strong countermeasures against US special safeguards to prevent the United States from concocting special safeguard procedures in other industries.
Previously, industry associations had proposed to the Chinese government that once Obama agreed to impose high tariffs on Chinese tires, China would immediately impose restrictions on auto products imported from the United States.
At the end of September, Obama will meet with leaders of many countries, including Chinese President Hu Jintao, at the G20 summit in Pittsburgh. If Obama chooses to take the opportunity to impose high punitive tariffs on Chinese tire companies, it will be a very embarrassing situation. .
For Obama, who has always flaunted free trade, if he decides to impose high tariffs on Chinese tires, he will inevitably face criticisms of trade protectionism and may provoke a new round of trade wars.
Cooper anti-special protection supports China
On August 27th, Marguerite Trossevin, a lawyer representing US dealers in the tire protection case lawsuit, told this reporter that for the party opposing the implementation of tire insurance, “the biggest recent progress was the Cooper Tire’s public opposition to trade sanctions. â€
On August 19, the US’s fourth-largest tire company issued a statement saying that taking special safeguard measures against Chinese tires was not appropriate, which not only caused serious negative impacts, but also may not solve the problem.
Curtis Schneekloth, Head of Investor Relations at Cooper Tire Company, told the newspaper: “We were the first to stand out (in the US tire business) because we were in a special position and we were outside of China. There are no production bases in cost countries, and our competitors (Goodyear, Michelin, Bridgestone) have production bases in low-cost countries outside China."
Curtis Schneekloth also revealed that Cooper's original plant closure plan in the United States will follow the plan (in December 2008, the company announced that it would close a tire production plant in Georgia, USA), and the factory is expected to close in the first quarter of 2010. At present, the company has four factories in the United States.
At present, Cooper Tire has a total of two joint ventures in China. Among them, Cooper Chengshan (Shandong) Tire Co., Ltd. has an annual output of more than 10 million pieces, supplying large domestic and foreign markets; and the other company is Cooper Jianda (Kunshan) Tire Co., Ltd. The company, located in Kunshan City, Jiangsu Province, is jointly established by US Cooper Tire & Rubber Co., Ltd. and Taiwan Jianda Tire Co., Ltd. in early 2007. It has an annual output of more than 3 million car tires, all of which are used for export to the North American market. At present, it accounts for 15% of the market share of similar products in the United States.
David Spooner, an American lawyer who represents Chinese companies’ responding to the case, also said in an interview with this newspaper that the opposition of Cooper may be the biggest news before Obama made the decision. “The significance of their coming out is very significant. "" Spbner pointed out.
In his impression, the United States president has never signed any special safeguard measures without the support of the U.S. industry.
“The addition of U.S. Cooper tires is of substantial significance to us.†Xu Wenying, deputy secretary-general of the China Rubber Industry Association, pointed out that because this is equivalent to overturning the U.S. Steel Workers Union’s statement that “they represent the interests of workers. "The tire business interests," because the United States own companies are standing out and do not need association protection.
Chinese tire companies have two hands ready
The reporter interviewed a number of Chinese tire companies involved in responding to the case. Most Chinese companies have begun to prepare both hands to meet Obama's final ruling.
Executive Director of Overseas Marketing Department of Shandong Linglong Tyre Co., Ltd. told reporters that the company has not produced orders from the United States since August, and stopped shipping to the United States. "We are waiting for the final results before we can confirm how we should respond." During this time, it can only be expanded to other markets."
Wang Guomei said that because the company has been exporting to the United States in large quantities in the past few months, which has caused orders in many other regions to remain out of stock, it is a good opportunity to shift production capacity to other markets - currently the US market accounts for the company's exports. 20% of the share.
“The main alternative market for the affected small car tires is in Europe and the Middle East.†Wang Guomei pointed out that although the tire specifications in Europe and other places have certain differences with the United States, the production equipment is the same, the company makes adjustments and Not too difficult.
In addition, Chinese tire companies have begun to increase investment in R&D, attempting to respond to possible trade barriers by improving quality. Exquisite tires have just established a technology research and development center in the United States, and increased investment in brand building.
Xu Wenying, the deputy secretary-general of the China Rubber Industry Association, also stated that the association is currently preparing for Obama's possible various rulings, but before Obama officially announced the ruling, the association is not willing to disclose the specific contents of the preparation.
Xu Youming, the manager of Hangzhou Zhongce Rubber Co., Ltd.'s legal affairs department, pointed out that after the hearing in the United States ended, Chinese tire companies “have already done everything†and the company is quietly waiting for the final ruling. “We hope that one A fair and fair trading environment."
Wang Guomei also expressed the same point of view. "I think we have a certain role in lobbying for the United States, so that most people understand the current status of Chinese tires. If the United States is still obstinate, it is not an economic friction."
QINGDAO SHUNDE PLASTIC MACHINE CO.,LTD , http://www.shunde-china.com