According to Shanghai Customs, Shanghai Customs District export inflatable rubber tires (hereinafter shortened as "tire") 190,600,000 units form Jan to Apr in 2009, worth 460 million U.S. dollars, down by 28.7% and 19% respectively y/y. The export has the following characteristics:

First, single month export rise for 2 consecutive months, export is getting better month by month. From Sep 2008 to Feb 2009, Shanghai Customs District tires exports declined for 6 consecutive months, of which, export only 100 million U.S. dollars in Feb 2009, the worst since August 2006. However, after March, the tires export in customs district rise for 2 consecutive months, reached 130 million U.S. dollars in April, though down by 13.2% y/y, as for March and April, respectively down by 1.6% in March as against Feb, down by 3.1% in April as against March.

Second, processing trade leads a dominant position. Shanghai Customs District export tires 17,430,000 units, worth 450 million U.S. dollars, down by 24.9% and 19.3% respectively, accounted for 98% of total exports in the same period in Customs District. At the same time, general trade export 1,632,000 units, worth 8,010,000 U.S. dollars, down by 53.3% and 6.2% respectively.

Third, the United States and the European Union are still the main export markets, of which, exports to the United States decline month by month. The EU and United States are Shanghai Customs District tires export major markets. Shanghai Customs District export to the two markets 200 million U.S. dollars and 70 million U.S. dollars from January to April in 2009, down by 15.6% and 26.2% respectively, total exports accounted for 58.6% of customs district total exports. However, since export to the United States in January 2009 decline for the first time since August 2006, single month export become severer month by month, down by 21.9% in April.

Fourth, tires used for passenger cars are major export products, tires used for passenger and goods export decline greatly. Tires used for passenger cars export 10,320,000 units from January to April in 2009, worth 300 million U.S. dollars, down by 19.1% and 9.8% respectively, accounted for 65.3% of total export in customs district. At the same time, tires used for passenger and goods export 1,703,000 units, worth 140 million U.S. dollars, down by 37.3% and 32.4%respectively, accounted for 29.5% of total tires export in customs district.

Since the outbreak of the international financial crisis, Europe and the United States and other developed countries dramatically shrank in auto production and sales, which was the reason why China's tires export decline. According to related statistics, the United States auto sales down by 37.3% from January to April in 2009 y/y. Of which, General Motors, Ford and Chrysler 3 International Auto giant sales down by 45%、39.8% and 46.2% respectively. At the same time, new cars registered number in Italy, France and Spain and other countries in April down by 7%, 7% and 46% respectively. The shrinking of Global automotive production and sales greatly inhibited the demand for the tires assembly and updating.

It is worth noting that, though tires export in shanghai customs district rise since March, tires export in the next phase would not be optimistic. Tires export are suffering the highest frequency of anti-dumping at abroad, so far, it has been under anti-dumping investigations by Venezuela, Australia, Brazil, Peru, Egypt, Argentina, Turkey, South Africa, Mexico and India and other countries. Of which, the United States ,which is China's largest export market for tires , tax 210% anti-dumping on unadopted tires on July 8, 2008,tires export in shanghai customs district decline since 2009. More seriously, American Iron and Steel Workers Federation applied to United States International Trade Commission to start a special safeguard investigation on tires import from China on April 20, 2009, asked for 21, 000,000 quota restrictions on passenger auto tires per year. Once the special safeguard restrictions are implemented, the United States would impose special customs duty, implement quotas on China's tires exports or both, China's tires export to the United States will be more difficult. At the same time, the special protection measures taken by the United States can easily be followed by other countries, which will make export environment deteriorated.

Therefore, there are some suggestions: First, make preparations for coping with trade protection, increase economic negotiations in foreign trade, and actively make use of the bilateral dialogue mechanism and cooperation mechanism, create an favorable environment for China’s export; Second, government and industry associations play the role of organization and coordination, strengthen foreign trade protection measures research and propaganda, help businesses acquire relevant trade procedures , enhance disputes solving ability in the trade protection.

Source : english.chinabuses.com

Editor : Grant

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Tags: Shanghai Customs Tires Export Down