The China Rubber Industry Association issued a seven-point proposal for responding to special tire protection programs in the United States yesterday. The seven suggestions include: increasing the export tax rebate rate, reducing natural rubber import tariffs, restricting or suspending the approval of replenishment or expansion of new cars or light truck tires, and further increasing the countermeasures against imports from the United States. The China Rubber Association pointed out that the United States currently imposes a 3.4% - 4.0% tariff on Chinese tires exported to the United States. If it imposes a levy of 35%, it will inevitably cause China's export tires to be seriously hampered and unable to be exported to the United States. It is estimated that there will be about 30 domestic tires. Enterprises cut production or suspend production, affecting nearly 100,000 workers’ employment. In order to minimize this harm, the China Rubber Industry Association made seven suggestions and requirements: I. Urged the government to raise the tax rebate rate for tire exports, and proposed to increase the tax rebate rate from the current 9% to 15%. Second, call for further expansion of domestic demand, and effectively increase the proportion of domestic tires for auto vehicles. Third, the government is called on to reduce the import tariff of natural rubber from 20% to 7%, in order to change the current tire companies are mostly export processing mode, and reduce the production costs of tire companies. Fourth, require tire companies in the face of crisis, should adjust the product structure, reduce production costs, improve product quality and other measures to expand the proportion of high-end tire products, speed up the process of creating world-renowned brands. 5. Call for government departments to restrict or suspend approval of capital increase, expansion or new construction projects for car and light truck tires. 6. The government is urged to strengthen the management and rectification of exporting companies and exporters. It is proposed to cancel the foreign trade self-management right of enterprises and distributors with poor product quality, low export prices and poor reputation. 7. It is recommended to further increase the countermeasures against imports from the United States. For example, agricultural products, machinery, aircraft, and other imported products should be subject to higher tariffs or restrictions. For the United States to violate its commitments made at the G20 financial summit, abusing trade remedy measures and implementing serious trade protectionism, it is recommended that the government resort to the WTO to seek legitimate rights and interests.
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View related topics: China and the United States tire special security case
China Rubber Association proposes seven proposals for responding to special tire protection programs in the United States