Recently, many industry organizations, such as the US Tire Industry Association and the US Tire Free Trade Association, have expressed their opposition to the US's special safeguard restrictions on Chinese tire products. The person in charge of the Fair Trade Bureau of the Ministry of Commerce of the People's Republic of China made a statement on the 3rd. He hoped that the U.S. government would seriously study the call from the US industry and make an objective and fair decision not to take measures.
It is understood that this special security case should be initiated by the American Steel Workers Federation. According to a ruling made by the US International Trade Commission (ITC) last month, China’s passenger car and light truck tires will be levied at 55%, 45% and 35% respectively in the next three years. The punitive tariffs on the grounds that the import of Chinese tires harmed the interests of American tire workers. Whether or not to take special guarantees will be decided by President Obama in September.
According to the person in charge of the Fair Trade Bureau of the Ministry of Commerce, the Chinese side noticed that the US Tyre Industry Association had publicly sent a letter to Obama on July 10th and copied it to the US Trade Representative Kirk, strongly demanding that Obama reject any proposal for restrictions on Chinese tyres. In the letter, the association stated that ITC's proposed relief measures are meaningless to protect the employment of US manufacturing workers, and that it will lead to higher prices and fewer choices for US tire consumers in the current economic crisis. It is known that the US Tire Industry Association consists of more than 6,000 small businesses spread across 50 states across the United States.
On July 21, the US Tire Free Trade Association, a group of six tire importers from the United States, sent a letter to Kirk, who also explicitly opposes special protection. The alliance pointed out that the implementation of special insurance will seriously damage the interests of US tire distributors and retailers. It is estimated that once the measures taken will result in nearly 25,000 people being unemployed in the distribution and retail sectors, the measure will lose an additional 25 jobs each time they “protect†an employment position. In addition, the relief measures will lead the US consumers to spend an additional 600-700 million U.S. dollars each year, which may force consumers to postpone the replacement of tires in times of economic hardship. This not only threatens the personal safety of consumers, but will further hinder the development of the tire industry.
On July 27, the U.S. Automobile Trade Policy Council representing the interests of the three U.S. automobile giants of Chrysler, Ford, and GM, and the U.S. Retail Leaders Association representing the interests of the largest retailers, product manufacturers, and service providers in the U.S. All of them sent a letter to US Trade Representative Kirk against special protection.
Cai Weimin, secretary general of the China Rubber Industry Association’s tire branch, said in an interview with the China News Service that if the United States implements special insurance, the first damage will be to the interests of the US consumers. The tire prices produced in China are reasonable and safe and reliable. very popular. The tires exported by China belong to the low-end products and belong to different markets with high-end products produced in the United States. There is no such thing as damage caused by the formation.
According to Cai Weimin, there is no reason why this special security case was initiated by the U.S. Steel Workers Federation. The U.S. side’s practice has also been unanimously opposed by domestic and foreign-owned tire manufacturers in China. The case affected about two billion U.S. dollars in tire products and more than 100,000 jobs in China.
The person in charge of the Fair Trade Bureau of the Ministry of Commerce stressed today that China firmly opposes the US resorting to discriminatory special safeguard measures for restricting the import of Chinese tires. The Chinese government has repeatedly expressed this position in its negotiations and consultations with relevant U.S. departments. The use of special insurance for Chinese tires not only damages the interests of the Chinese tire industry, hinders the normal development of Sino-U.S. bilateral trade, but also undermines the overall economic interests of the United States.
View related topics: China and the United States tire special security case
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