Shandong Tyre Export Breaks through “Special Safeguard Case” to Realize Rapid Growth

Despite being restricted by the United States' special protection case for more than two years, the Shandong tire industry still achieved rapid growth by improving product quality. According to the Shandong Entry-Exit Inspection and Quarantine Bureau, in 2011, Shandong Inspection and Quarantine Bureau tested more than 7.8 billion U.S. dollars in export tires, an increase of 54% year-on-year. Among them, more than 1.3 billion U.S. dollars of tires were exported to the United States, an increase of over 25% year-on-year.

In recent years, Shandong tire exports accounted for nearly 50% of China's export value of tires, and 11 companies were among the world's top 75 tires. From 2004 to 2010, Shandong's export value of tires increased from US$500 million to US$5 billion a year, of which the export value of self-owned brands exceeded 80%.

In September 2009, the United States implemented special safeguard measures on China's export tires, and imposed ad hoc special tariffs of 55%, 45%, and 35% for China's passenger-to-substance passenger vehicles and light truck tires for three consecutive years. On September 5, 2011, the Appellate Body of the World Trade Organization ruled that the United States imposed punitive tariffs on Chinese tire imports to the United States in line with WTO rules. After two years of representation, the " special protection case " for US-made tires eventually ended in defeat by the Chinese side.

The United States is the largest market for the export of tires in Shandong. If the tires involved in the case all stop being exported to the United States, Shandong Province will reduce the export of tires by about 11 million each year, affecting the export amount of about 380 million US dollars. In order to maintain the good status of tire exports, the Shandong Entry-Exit Inspection and Quarantine System focused on increasing the help of 25 tire companies in Shandong to help solve product quality problems and safety hazards and increase brand value. And guide enterprises to develop green high-end tire products, the development of the United States without restrictions, such as load-carrying tires.

Shandong also explored the establishment of an export tire quality safety supervision demonstration area. In Dongying City, where export tire companies are relatively concentrated, the country’s first “Export Tire Quality Safety Supervision Demonstration Zone” was established to promote the overall quality of export tires. In 2011, Dongying exported tires of US$3.037 billion, an increase of 81.56% year-on-year, accounting for 39% of Shandong's export tires.

According to Shi Yong, deputy director of the Shandong Entry-Exit Inspection and Quarantine Bureau, at present, 20% of the tire manufacturing enterprises in Shandong are at or close to the international advanced level, and high-end radial tires, snow tires, and racing tires have been developed. While consolidating the traditional export markets of Europe and the United States, export companies have also actively explored emerging markets such as Africa and the Middle East, and exported 210 countries and regions.