Since the access to World Trade Organization, the automobile industry of China has grown enormously and the country has become the world’s biggest automobile manufacturer and distributor. Revenue of the Tire Manufacturing industry in China was around $95.6 billion in 2017, up 3% for the year. Over the five years through 2017, revenue has been growing at an average annualized rate of 4.2%. The development of China’s automobile Manufacturing industry (IBISWorld industry report 3721) has been a major driver of tire demand. Another important thing is that China is also the largest and exporter and producer of the automobile tires all over the globe and especially in the US.
China-sourced tires accounted for one-third of U.S. car tire imports, nearly a quarter of light truck tire imports and 63 percent of medium truck/bus tire imports, according to analysis of data from the U.S. Commerce Department by Tire Business, a sister publication of Rubber & Plastics News. Some of China’s gain in the car tire segment can be chalked up to higher shipments in the fourth quarter as importers tried to get tires on shore before the U.S. antidumping and countervailing duties took effect.
How ITC’s verdict boosts the Chinese tire industry-
According to the professionals of the China suppliers online, made in China tires met the growing demand in the United States. The verdict of the U.S. International Trade Commission or ITC that subsidized bus and truck tires imported from China had not damaged the U.S. industry, and as a result it would not issue anti-dumping and countervailing duty orders on the products is perhaps the decision that boosted the sourcing of Chinese made tires to the United States. Wang Hejun, the head of the trade remedies and investigations division at China’s Commerce Ministry, also welcomed the decision and said in a statement “China appreciates that the ITC could make a fair ruling that respects the objective facts.”
Leading Chinese Tire companies-
- Zhongce Rubber Group
- Maxxis International
- Shandong Yinbao Tyre Group Co., Ltd
- Fullrun Tyre
- Qingdao Harvest Industrial Co. Ltd.
- Dongying Fangxing Rubber Co. Ltd.
Tires are known to be a grudge purchase, and price continues to play a significant role for consumers. The Chinese can provide a better price because they have lower labor costs. Chinese tire manufacturers are pushing their product to markets outside their own country, and that is primarily the main reason the American market is flooded with the made in China tires.