China's Multi-faceted Response to U.S. "Double Opposition"

Recently, the U.S. Department of Commerce issued an announcement to announce an anti-dumping and anti-subsidy investigation on truck and bus tires imported from China. The investigation involved more than 100 export companies and huge export products in China.


Survey involving more than 100 export companies and huge export products in China

A person in the Chinese tire industry stated that the case involved a huge amount of interest from the Chinese side and caused the Chinese industry’s attention. The Chinese side will work together through government departments, industry organizations, and enterprises to strive for favorable results.

The amount involved is huge

It is understood that the products under investigation refer to new pneumatic rubber tires with truck or bus tire specifications. Tubes are included, and radial and oblique tires are also included.

The anti-dumping investigation period set by the United States was from July 1, 2015 to December 31, 2015. The dumping margin claimed by the applicant was 19.91%-22.57%; the anti-subsidy investigation period was the entire year of 2015.

According to statistics from China Customs, the number of products involved in China's exports in 2015 was 599,800 tons, and the export value reached 1.484 billion US dollars.

Among them, the dumping investigation period (in the second half of 2015) amounted to 296,000 tons of products involved in the United States, and the export amount was 710 million US dollars. The year involved a total of 179 direct export enterprises.

The website of the China Council for the Promotion of International Trade released information that during the period of dumping investigations, China’s export of products involving the United States was estimated at US$710 million; during the subsidy investigation period, China’s exports to the US amounted to approximately US$1.5 billion.

Such a large amount of money has caused many Chinese exporters to tighten their nerves.

On February 19, 2016, the China Minmetals Chemicals Import and Export Chamber of Commerce, the China Rubber Association, and the China Council for the Promotion of International Trade held the "United States Coordination Meeting on Anti-dumping Countervailing and Anti-subsidy Response to Wakakuba Tires" in Beijing. More than 100 representatives of more than 70 companies involved in Shandong, Zhejiang and other places attended the meeting.

"From 2007 to now, almost all of China's tire export products have been "double reversed" by the United States. This time, the spearhead is directed at truck and bus tires, and the impact on companies that use this as the main product is particularly great."

The relevant person in charge of the Legal Department of the Minmetals Chamber of Commerce stated: "At the meeting on February 19, there were many CEOs of large-scale tire companies who had personally attended the meeting. This shows that the industry attaches great importance to this case."

Actively respond to the unreasonable practices of the United States

In fact, in such a huge case, the U.S. side’s practice is obviously not appropriate.

On February 20, the person in charge of the Trade Relief and Investigation Bureau of the Chinese Ministry of Commerce pointed out in this case that the decision made by the US Department of Commerce was lacking in facts and legal basis. In particular, there were serious problems with the applicant’s qualifications and industry representation.

“The case was filed by a U.S. trade union organization. Some major tire companies in the United States did not support the filing of the case. At the same time, the production and operation of the U.S. domestic tire companies were profitable. In this case, the U.S. side still launched a 'Investigation, the Chinese side expresses serious concern about this approach.'

The official said: "The Chinese government will pay close attention to the progress of the case and resolutely use the WTO rules to safeguard the legitimate rights and interests of Chinese companies."

The relevant person in charge of the Legal Department of the Minmetals Chamber of Commerce stated that as of now, no domestic U.S. manufacturers have expressed their support for the survey; from the perspective of the U.S. domestic manufacturers’ financial status, U.S. industry performed well. The operating income, number of employees, etc. performed well and there was no evidence of “substantial damage” to China’s exports.

A person in charge of a Chinese export company involved in the case stated that the company had accumulated a great deal of experience in the previous "double reverse" case of passenger car tires, and this case has more favorable conditions and it is believed that the possibility of winning the defense will be even greater. Bigger.

"The U.S. market is a benchmark for the global market. If this is not badly beaten, we may be even more hurt in the world," said the person in charge.

In fact, the industry organizations led by the Minmetals Chamber of Commerce had done a lot of work in the United States in the early stage of filing their complaints. Organizations involved in the case were actively involved in responding to the questionnaire and participated in the suit. They had not been suspended during the Spring Festival.

“Next we will continue to organize the industry to defend against damages, strengthen inter-departmental cooperation, and jointly promote legal defenses, government consultations, individual responding to enterprises, and industry lobbying."

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