Shandong offers training to local tyre companies involved in Chinese tariff

Chinese-tyres

The Department of Commerce of Shandong Province has been offering training programs since August to local tyre companies involved in the US anti-dumping and countervailing probe on Chinese tyres, according to Fang Xiaojie, head of fair trade division of the department.

“There’s not much we can do, but we’ve been getting them familiar with US regulations and letting them know what US law firms are good in this area and they can choose from,” Mr. Fang said.

In October, Qingdao Sailun Tyre Co. Ltd. and Cooper Chengshan Tire Co. Ltd., two tyre companies based in Shandong, China, were added as mandatory respondents in the investigation.

According to an announcement by Sailun in August, the company is not expecting a severe impact from the probe. During the period from 2011 to the first quarter of 2014, only 10 percent of the company’s revenue came from sales of steel-belted tyres to the US market.

In addition, Sailun set up a subsidiary in 2012 in Vietnam with planned capacity of 7.8 million/year steel belted radial tyres and 15,000 tons per year of all-steel engineering tyres.

“An important reason for [setting up the subsidiary] is to avoid tariff barriers from Europe and the US,” Sailun said.

“We are also trying to make the companies fully understand the importance of this investigation,” Mr. Fang said. “Their responses would affect the whole industry.”

“We’ve been doing the best we can, but based on the current situation the results are not looking good,” he added.