The Chinese asked to investigate the special case of tires and fight back

In the early hours of December 22, Beijing time, the WTO agreed to set up an expert group to investigate the lawsuits filed by the United States, the European Union, and Mexico against China for restricting the export of raw materials. China responded immediately on that day and requested the WTO to set up an expert group to investigate the United States tire special security case. Experts said that such countermeasures are more appropriate and will help fight for China’s legitimate rights and interests.

It is understood that the dispute settlement mechanism of the WTO is divided into two steps. First, the plaintiff and the defendant will conduct final negotiations on the case. 60 days after the start of the mechanism, if the parties failed to negotiate, the WTO will set up an expert group to intervene in the case, fully investigate and eventually make a ruling.

WTO nod: set up an expert group to investigate the "raw material case"

Although at the meeting held by the WTO Dispute Settlement Body (DSB) on the same day, the Chinese delegation stated that it had made a clear explanation on the relevant raw material export management measures and was willing to continue to resolve the issue through dialogue. However, the United States, Europe, and Mexico have insisted on requesting this The case set up an expert group. The Chinese side is disappointed. China had previously stopped the request for sending a group of experts for the previous time. However, according to WTO regulations, the Chinese side could not refuse the second time. Relevant sources said that since the establishment of the expert group has become an inevitable, China will safeguard its own rights.

A U.S. official claimed that China’s export restrictions on bauxite, coke, magnesium, manganese, and other minerals include export quotas, tariffs, minimum export prices, and restrictions on export rights, pushing up the production of steel, aluminum, and chemical products. The cost of materials, and make China-related companies in the international competition to obtain "unfair advantage."

Yao Jian, the spokesperson of the Ministry of Commerce, has fought back. China's export tax on certain raw materials is in line with global interests and can play a role in improving the export environment, adjusting product mix and protecting the environment.

China's Counterattack: It is Necessary to Investigate the "Treasure Special Protection Case"

It is worth noting that just on the establishment of the "raw materials case" expert group, the Chinese side also requested the WTO to set up an expert group to investigate the special safeguard measures taken by the United States against Chinese tire exports to the United States. “The U.S. government announced on September 11 the implementation of a punitive tariff for passenger cars and light truck tires imported from China for a period of three years. This so-called special safeguard measure was adopted after succumbing to protectionist pressure on domestic trade. The interests of both countries have caused damage, and they lack the factual basis and are in violation of the relevant WTO regulations.

After the Chinese side made the above request, the United States blocked the establishment of the expert group in accordance with relevant procedures. However, according to the WTO rules, China can again request the establishment of an expert group on January 19. By then, the United States will not have the right to stop again, and the expert group will be established automatically.

Business complaints: China's tire exports fell sharply

“The Chinese government will certainly resist unreasonable trade protection.” On December 22nd, Cai Weimin, secretary general of the tire division of the China Rubber Industry Association, re-emphasized that the US tire special protection case has a great impact on the export trade of Chinese tire companies.

According to the latest statistics released by the Ministry of Commerce, in the past two months, the export of tyres to tyres from the United States, including tyre export enterprises, has significantly decreased in the United States. In October and November, the export value of tyres from the United States to the United States dropped by 48.6% and 46.8 respectively year-on-year. %. Due to the loss of price advantage, the export of tires from the United States to the United States dropped sharply, and some of the products involved in the case were almost stagnant.

The related person of Giti Tire disclosed to reporters on December 22 that in recent months, the company’s sales volume to the United States has shown a downward trend, which has had a certain impact on the company’s overall operations. At present, the company has taken two countermeasures in the hope that it can make up for the decline in export performance. Among them, including increasing the price of tires exported to the United States, and adjusting the sales channels of tires.

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