After two years of “double reverse†punitive tax rates in the US market, Chinese tire export companies have finally been able to raise their eyebrows. The U.S. International Trade Tribunal recently ruled on the Sino-American tire case and found that the US Department of Commerce improperly imposed anti-dumping and countervailing duties at the same time and constituted double taxation.
According to reports, the court ruled that since the countervailing duty is a tax on market economy countries, the US Department of Commerce regards China as a “non-market economy country†and must abandon the countervailing duty on Chinese products. China's Hebei Xingmao Company and Tianjin United Tire and Rubber Company sued the US Department of Commerce for a successful case, and the ruling requested the US Department of Commerce to abandon anti-subsidy duties.
It is understood that in June 2007, the TitanTire Corporation of Iowa and the U.S. Labor Union complained to the US Department of Commerce and the U.S. International Trade Commission that some of the non-road tires imported from China had been subsidized in the United States due to subsidy below the normal price. , causing damage to related industries in the United States. On July 30 of that year, the U.S. Department of Commerce initiated anti-dumping and anti-subsidy investigations on certain non-road tires originating in China. On August 15, 2008, the US International Trade Commission issued a final announcement of definitive damages to China's non-road anti-dumping anti-subsidy case, arguing that the Chinese-made products involved in the United States constitute substantial damage to the domestic industry in the United States. Subsequently, China's Hebei Xingmao Company and Tianjin United Tire and Rubber Company filed a lawsuit against the US National Trade Court, suing the US Department of Commerce.
The Chinese attorney stated that the reasons for the loss of the U.S. Department of Commerce are not only considering China as a market economy country but also as a non-market economy country. It is simply impossible to find out whether there is double taxation when anti-dumping and anti-subsidy taxes are levied simultaneously. . This is also the practice that the US Department of Commerce frequently adopts in many cases similar to Chinese products. However, for many Chinese companies, although the current "double reverse" case has won phasic successes, it has been difficult to recover the international market "positions" lost in two years.
According to the reporter's understanding, at the same time, China's tire companies are still faced with another trade barrier "special protection clause." US President Barack Obama announced in September last year that he will implement a three-year punitive tariff on imported cars and light truck tires on the ground of "protecting employment." This was the first time that the United States has supported China since joining the WTO in 2001. The "safeguard clause" imposes punitive tariffs on Chinese products.
Trade experts said that the special security case is easier than the “double reverse†case and the criteria for judgment are relatively vague. Therefore, driven by protectionism, “special protection†measures are likely to become “weapons†that the US will use again in the future. . It is understood that at present, China’s tire export volume has dropped by 70% to 80% before the “special security case†occurred. In the future, China will face a more severe trading environment and export resistance will increase.
Chang Chizhi, a researcher in the chemical industry of China Investment Advisors, pointed out that due to the impact of the United States tire special security case, the volume of tires exported to the United States in the first half of 2010 showed a downward trend, but the tire exports to the United States in May and June Start to increase. Experts believe that from the current situation, it is expected that the situation of China’s tire exports to the United States in the second half of 2010 will likely change.
However, some experts also stated that the high unemployment rate in the United States indicates that the economy is still not completely out of the trough. Under the influence of the unemployment rate, the possibility of major complaints from local trade associations, labor unions and other trade friction parties has greatly increased. Export enterprises in China need to make more efforts to adjust their product mix and diversify their market development so as to get rid of the unfavorable situation.
In an interview with reporters recently, experts from the China Association of Automobile Manufacturers stated that with the rapid development of China’s auto industry, trade frictions will certainly increase in the future. At present, more than 10 countries have submitted anti-dumping and anti-subsidy investigations to China's tire export enterprises. Chinese companies should mature as soon as possible, learn to safeguard their rights and interests, and actively respond to trade disputes. At the same time, it is necessary to continuously improve the quality of tire products, adjust the industrial structure, achieve industrial upgrading, and effectively increase the export competitiveness of China's tire products.
In any case, experts believe that the success of this case is not only beneficial to the two companies producing non-road tires, but also has warning and demonstration effects for other Chinese export companies. However, due to the large scale of the case, it is generally expected that the U.S. Department of Commerce or related companies and industry associations will likely appeal.
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