Chinese passenger vehicle and light truck tire producers and exporters took a hit after the US Commerce Department on June 11 set final dumping margins on imported tires from China, although directives of punitive duties on those products have not been posted on the US government agency's website, the China Business News (CBN) reported.
Chinese passenger and light truck tire importers are dumping their products in the US at margins ranging from 14.35%-87.99%, the Commerce Department's International Trade Administration has ruled.
Dumping margins are the percentages below which Chinese tire makers may be undercutting the prices of US tire manufacturers.
Also, the same importers are obtaining Chinese government subsidies ranging from 20.33%-100.77%, according to a decision issued by the Commerce Department June 12.
It said that certain tire imports from China have been sold or "dumped" at less than fair market value in the United States and that some have received government subsidies.
Punitive duties will be imposed on such products now that the US International Trade Commission (ITC) made a final ruling July 27, according to the CBN report.
The Commerce Department launched the anti-dumping and anti-subsidy investigation into Chinese tires last July, according to the report.
The Chinese Ministry of Commerce has voiced strong opposition to the decision, saying that the probe breaches the rules of the World Trade Organization (WTO) and US law.
The punitive measures are expected to affect Chinese tire makers and exporters, particularly those in Shandong province, an important tire production base in China. Nearly 50% of the tires produced in the province are exported and 40% of the exported tires are sold to the United States.
Last year, tire exports in the province reached US$8.86 billion, a 2.7% year-on-year growth. However, the industry in the province is facing grim prospects. For instance, in the first quarter of this year, the province's Dongying city, a major tire manufacturing hub, posted tire exports of only US$1.34 billion, a 24.6% decline year-on-year.
In addition, some tire markers in Fujian province, whose products are involved in the investigation, have also been forced to give up their markets in the United States, according to the report.
Meanwhile, some Chinese tire makers are stepping up their plans to move their factories overseas, the report added.

Aug 8, 2015
Source: Want China Times