Tire Makers Seeks Solution    

The event that the US announced to impose high tariff on imported China-made tires on September 12th has ever caused a shock among China's tire makers. Today, the discussion seemed to calm down in public media and the tire exporters who used to enjoy the US market are busy in seeking the markets alternative to address their difficulties.  
   On September 23rd, Hebei Starbright Tire Co tried to get fair judgment from the US International Trade Court. The Ministry of Commerce of China showed publicly that it will support the Chinese tire companies to get fair treatment through court.
   Given the high tariff, China's tire makers have to face their overcapacity themselves, although global top ten tire makers all contributed to this overcapacity by having built tire factories in China.
   On September 26th, China Rubber Industry Association (CRIA) held a meeting in Nantong of Jiangsu province to discuss the current conditions. All attended tire makers agreed they will continue to treat with the US's tire case. The conclusion formed at the meeting concludes proposed measures to help related companies solve the urgent problems. Tire makers are suggested to adjust their product portfolio and market layout. CRIA will suggest the government to stop approving new tire project and accelerate the elimination of outdated production lines. The conclusion also ask the government to reduce the import tariff of natural rubber in order to decrease tire cost, and limit the processing trade while encourage the common trade in order to increase the exports of tires labeled with China's own brands. The conclusion also asks the government to increase the export rebate rate from the existing 9% to 15%. The government was also claimed to set up laws to regulate the exporters and lift the exports threshold. CRIA was suggested to set up a fair trade committee.      
    Fan Rende, Chairman of CRIA, gave a presentation titled with Consideration on the Development of China Rubber Industry after Financial Crisis. Most of his suggestions and viewpoints were accepted by the attendees and written into the conclusion. He projected that China's rubber industry will be involved in huge straits and exports will no longer be a good way. More tires will be left in the domestic market, causing a new turn of price slashing. Fan did not think the domestic economic growth now is stable enough to help tire makers solve all problems.
   India stopped the dumping investigation on imported China-made tires in September.