Mofcom: Chinese Tyremakers Should Lobby for Review of ITC

The Chinese Ministry of Finance and Commerce (known as Mofcom) continued its ongoing campaign against what it describe as the Obama administration’s politically motivated implementation of anti-dumping tariffs on Chinese-produced passenger car tyres imported into the US. Speaking to Tyres & Accessories after Mofcom’s presentation during the Tire Tech seminar series at the Reifen China in Shanghai, Wang Xin (Mofcom Bureau of Fair Trade representative) said Chinese tyre companies along with industry associations should seek a review of the 35 per cent import tariff brought in September. This approach would be based on the US government’s own standard policy of reviewing trade sanctions after six months. Washington DC firm Squire Sanders Dempsey is providing legal representation in the matter.

During the course of his presentation Wang Xin pointed out that trade measures against China are not a new phenomenon with the first such barriers raised in 1979. However, while less than common there are definitely signs of increasing activity in this area and such measures are estimated to be worth in the region of US$11.6 trillion a year. When you consider that the average tariff period is five years, with many being renewed up to four times (a total of 20 years), you can understand why the Chinese government is rattled.

The official advice for Chinese companies involved in the international dispute was to cooperate with investigations and thus prove they are not involved in dumping. Further to this Mofcom advises that companies work with their international distributors as much as possible to maintain market share in countries like the US; develop their presence in other establish markets; and establish their own presence in emerging markets.