China Rubber Industry Association calls for sanctions on US products

ERJ staff report (TB)

SHANGHAI (Sept. 12, 2009) - The China Rubber Industry Association (CRIA) is condemning the US's decision to impose tariffs on consumer tyre imports from China, calling it an “unjust and unfair judgment” and has called on the Chinese government to take anti-sanction measures on US products.

The CRIA, in a letter to President Obama signed by 16 leading Chinese tyre makers and marketers, said imposing duties on Chinese tyre imports “is not only helpless to solve the problems faced by the US tyre industry, but also harmful for US tyre producers, wholesalers, retailers, after-sale servicers, retreading and recycling companies and end users as well.”

The CRIA characterised the decision as a “violation” of World Trade Organisation and US laws.

In its letter, the CRIA pointed out that exports of Chinese-made tyres to the US increased only 2.2 percent in 2008 vs. 2007 and that they had dropped 16 percent in the first half of 2009.

It also reiterated its position that recent plant closings in the US were not directly caused by the imports of Chinese-made tyres, and the judgment on Chinese tyres disrupting the market is inconsistent with the facts and short of objectivity.

The CRIA also pointed to the anticipated impact on the US distribution industry, stating Chinese-made tyres are sold at more than 43,000 retail outlets in the US

The letter to President Obama was signed by representatives of South China Tire & Rubber Co. Ltd., Hangzhou Zhongce Rubber Co. Ltd., Aeolus Tyre Co. Ltd., Shandong Linglong Rubber Co. Ltd., Nanjing Kumho Tire Co. Ltd., GITI Tire (China) Investment Co. Ltd., Shandong Yongtai Chemcial Group Co. Ltd., Fullrun Tyre Corp. Ltd., Sichuan Tyre & Rubber Co. Ltd., Beijing Capital Tire Co. Ltd., Hankook Tire China Co. Ltd., Sailun Co. Ltd., Qingdao Yellow Sea Rubber Co. Ltd., Qingdao Doublestar Tire Industrial Co. Ltd., Triangle Tyre Co. Ltd., and Guizhou Tyre Co. Ltd.

It also was sent on behalf of the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters and that body's tyre branch.

From Tire Business (A Crain publication)

Letter to President Obama from CRIA