Anti-Dumping Pressure Mounts on Chinese Tyre Makers
While most of the rainbow nation was preparing to welcome people from far and wide to the first World Cup on African turf, the country’s legal eagles were deliberating over whether or not to kick certain Chinese tyres out of the country with an anti-dumping investigation. On 4 June 2010 the South African press reported that the High Court of Pretoria’s Judge Willie Hartzenberg set aside an earlier ruling made in 2007 by the Trade and Industry Ministry (Itac), to terminate anti-dumping probes against Chinese tyre exporters. He further ordered that (Itac) complete an anti-dumping investigation within four months. The judgement was duly lauded as bringing "fair competition" to the tyre manufacturing industry by those who brought the case, namely Bridgestone South Africa, Continental Tyre South Africa, Dunlop Tyres International and Goodyear Tyre & Rubber Holdings through their representative body South African Tyre Manufacturers Conference.
Whether or not the Chinese tyre imports in question can accurately be described as dumping – and it would be prudent to let the courts decide that – the ruling is another sign that products manufactured in the People’s Republic are not the quick and easy sell they once were. As far as tyres are concerned, the combination of increasing natural rubber, oil and steel input prices, combined with an unstable shipping cost context and added to the increasingly inhospitable international trade climate mean the latest decision in South Africa may force some Chinese factories to rethink either the delivery strategy or destinations of their tyres.