US tariffs 'welcomed' in China

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 .

Subscribers can read the full report in the March/April issue of ERJ magazine out soon. Subscription to ERJ gives you access to in-depth news, features and analysis of developments throughout the global rubber and tire manufacturing industries, including the annual Global Tire Report, European Tire Report, Global Rubber Machinery Report, Top 50 Non-tire Rubber Producers and China Tire Report (new), as well as to coming additions to the popular ERJ Tire Maps series.

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