London - Chinese tire manufacturers are likely to undergo a structural consolidation due to outside pressure, according to an industry analyst based in China.
With China’s annual Communist Party sessions held in March to draw up a roadmap for the country’s economic development for the next 10 years, the tire industry, among a host of other industries, will be encouraged to improve efficiency and raise its standards.
Head of Shanghai-based chemical company Cenway, Benz Li, said to ERJ that he welcomed US tariffs and anti-dumping duties on Chinese tires as they posed extra pressure on the industry to restructure.
“They [outside pressure] are actually a good thing for the Chinese nation-wide structural consolidation of all industries.
“For example, for tire industry consolidation has been expected for many many years. This time a true change is to happen finally, because of substantial pressure from outside – ie the US,” said Li .
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