Sino-U.S. tyre special protection cases have attracted high-level attention from China and the United States, but there are still many variables. Yesterday, the Ministry of Commerce issued a news report on the latest progress in discussions with the U.S. on the “special security case” for tires, and stressed that the provisions on trade transfer in the U.S. safeguard provisions would have a conductive effect. If the U.S. side takes measures, it will trigger other countries to adopt Measures have harmed the interests of the Chinese side. After two days of negotiations, the U.S. side expressed its willingness to continue to maintain communication with China and resolve issues through consultations.

The U.S. promises to seriously consider China’s position

On August 18th, Vice Minister of Commerce Zhong Shan led a delegation of Chinese government to continue negotiations and consultations with the White House Security Committee, the Office of the Trade Negotiation Representative, and the Ministry of Commerce on the tire special security case. Zhong Shan said that China firmly opposes special safeguard measures. The Chinese government, industry, and people are highly concerned about this case because the special safeguard measures are discriminatory and unfair to China; the provisions on trade transfer in the special safeguard clauses will have a conductive effect. If the U.S. takes measures, it will trigger other countries to take measures to harm the interests of the Chinese side. Under the current international response to the financial crisis, the U.S. adopts special safeguard measures to send the world the wrong signal of trade protectionism, and it will also be serious. Affecting the stable development of China-US economic and trade relations.

Regarding the opinions expressed by the Ministry of Commerce officials negotiating on behalf of the Chinese side, the United States stated that it fully understood the Chinese side’s concern and position in this case through negotiations and will seriously consider the Chinese position and opinions. At present, the case is still under investigation procedures and is willing to continue China maintains communication and resolves concerns through consultations.

On the 18th, Ms. Deng Yazhao, secretary general of the China Rubber Industry Association, said in an interview with the reporter that the Rubber Association is currently waiting for various news from the Ministry of Commerce to visit the United States. It is not yet known about the details of the current negotiations between the Chinese government and relevant US agencies. Since negotiations are a long process, it is still not possible to judge whether the results of the negotiations are optimistic. The final result will depend on the final decision of President Barack Obama in September.

Chinese parts are frequently investigated for anti-dumping

In fact, the Sino-U.S. tyre special protection case is not a special case. Recently, the EU and China have also experienced friction in the export of aluminum alloy wheel hubs (hereinafter referred to as aluminum wheels). On August 13, the EU launched an anti-dumping investigation against Chinese aluminum alloy wheels, involving more than 60 major Chinese companies and directly affecting exports by 390 million yuan. In the US dollar, the Chinese auto parts industry is experiencing unprecedented pressure in the international market.

According to EU anti-dumping, Yao Jian, spokesman of the Ministry of Commerce, said that the WTO anti-dumping agreement has strict standards for filing cases and requires the investigation agency to review the accuracy and adequacy of the evidence provided in the complaint, and to ensure the integrity of the investigation. The complaint submitted by the European Wheel Hub Manufacturers Association did not publish the list of applicants, which is not conducive to the defense of Chinese companies and does not comply with the WTO's principle of transparency. As China's aluminum alloy wheel products are widely used by large transnational companies such as Mercedes, BMW, Volkswagen, Audi, etc. as auto parts, anti-dumping investigations will increase the uncertainty of the market environment and increase the cost of procurement for EU auto manufacturers. No benefit.

The anti-dumping investigation by the European Union is the second anti-dumping case in the Chinese automotive industry in the last month. In response, Xiong Chuanlin, deputy secretary-general of the China Association of Automobile Manufacturers, said that currently the China Association of Automobile Manufacturers, as a legal representative of the Chinese auto industry, has organized enterprises involved in the case to carry out response activities.

In recent years, auto parts fasteners, aluminum wheels, brake pads and other auto parts have been subjected to trade sanctions in the EU, North America and other regions. Auto parts frequently cause trade disputes. According to industry analysts, China’s exports rely heavily on trade patterns, and often see which market is good to enter, and quickly expand market share, which can easily lead to trade disputes. Therefore, China should upgrade the industrial upgrading of export products and increase the export of high value-added products.

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