Yu Qingxi: Internationalization is the way to break the trade barrier in the tire industry

The Chinese rubber industry has entered the international market and trade protection is a frequent problem.

Witness Yu Qingxi, a witness of the development of China's rubber industry and a deputy director of the Department of Rubber Industry of the former Ministry of Chemical Industry, said that depending on two resources and two markets, it is inevitable for the development of the Chinese rubber industry, especially the tire industry, but it will go out and compete and challenge. And so on.

Internationalization is the way to break down trade barriers in the tire industry
Internationalization is the way to break down trade barriers in the tire industry

Tyres are the main force for China's rubber industry to go out and have the most trade barriers. In 1957, China’s tires were exported for the first time. In 1995, tire exports reached 6.7 million, in 2005 it was 180 million, and in 2014 it reached 240 million.

Around 2006, major markets in Europe and the United States first hit, tire anti-dumping continued, and extreme trade protectionism followed one after the other. The major exporting enterprises in the industry have a clear attitude towards this, respond positively, and have no fear of resorting to laws. Foreign trade has maintained a momentum of rapid growth.

In order to break through barriers to overseas trade, in recent years, the racing wheels Jinyu , Linglong Tire , Chinagce Rubber Group , and Sen Unicorn Tire have accelerated the pace of foreign construction and promoted the process of China's tire internationalization strategy.

Racing Wheel Jinyu invested in Vietnam in 2011 to set up a race (Vietnam) Co., Ltd. project, a total investment of 95 million US dollars, the current semi-steel tire has been put into production profit. Now the company has started the second phase of the project, and the construction scale will increase to an annual output of 7.8 million semi-steel radial tires and 15,000 tons of all-steel engineering tires.

In December 2014, Linglong International Tire (Thailand) Co., Ltd. completed an annual production of 2 million high-performance semi-steel radial tires and put into production; the second phase of the all-steel radial tire project started construction in June 2014. The first in May of this year The tire went off the assembly line. The exquisite company's globalization strategy is based on Thai factories and forms three overseas manufacturing bases.

In August 2014, Sen Qilin Tire Co., Ltd. and Thailand Taihua Gummy Co., Ltd. held a land contract signing ceremony, and Sen Qilin's overseas distribution strategy was officially launched.

In June 2015, Chinagce Rubber (Thailand) Co., Ltd. held its opening ceremony in Thailand's Thailand-China Rayong Industrial Park. The plant is the first factory built by the Chinachem Rubber Group overseas and is the largest tire factory in Thailand. Since the start of construction on November 7, 2014, the first PCR tires were released on May 25 of this year. China Strategic Thailand has created a factory miracle. At present, the base mainly produces semi-steel radial tires, and by the end of 2015, up to 5 million production scales. Shen Jinrong introduced that the production base will also invest some of the full steel tire capacity in the future.

Tire related industries are also speeding up to go out and build bases. “The overcapacity of domestic carbon black, the export of large quantities of products, and the fight for prices in the international market have caused India to anti-dumping against Chinese carbon black. Carbon black enterprises should be a way out if they build factories in countries such as Indonesia, India and Thailand.” Wanda Group Shandong Chen Xinzhong, chief engineer of Carbon Black Company, said.

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