Dublin, Ireland – In 2016, China’s tire export reached CNY 468.48 million, increasing by 5.4 percent year-on-year. Export value was $12.89 billion, decreasing by 6.9 percent year-on-year. Average unit export price was $27.52, decreasing by 11.65 percent year-on-year. Affected by the decreasing price of natural rubber in the international market in recent years, the manufacturing cost of tires has been declining, so the average unit export price of tires has been declining as well, according to Research and Markets.
In 2016, tires from China were exported to more than 200 countries and regions with the U.S.A. being the largest market. The value of tires exported from China to the U.S.A. was $2,102 million, accounting for 16.3 percent of China’s total export value of tires in the same term. The U.K. was the second largest market. In 2016, the value of tires exported from China to the U.K. was $541 million, accounting for 4.2 percent of China’s total export value of tires in the same term. Mexico, Australia, the UAE and Germany were also important export destinations for tires from China. Tires exported to the U.S.A. were mainly radial tires for passenger vehicles between 15 and 16 inches. China’s export price of tires of that size is 80 percent of the average export price, still lower than the prices of other countries. Tires imported from China ranked the first in terms of all sizes of imported tires for passenger vehicles in the U.S.A.
Since China joined the WTO, the rapid growth of tire export has resulted in more trade barriers, posing severe challenges to manufacturers and exporters in China. For one thing, the U.S. and European countries have set stricter technology standards for imported tires. Meanwhile, the increasing market share of tires exported from China harms the benefits of some tire manufacturers. A price war breaks out among Chinese tire exporters. The structures of exported tire products and the market are improper. These all lead to serious problems faced by Chinese tire exporters. China’s large scale of tire export has triggered several countries to undertake sanction measures such as anti-dumping. In 2017, China’s tire export industry will remain dim. This is mainly due to the slowing growth of the global economy and the increasing international trade barriers. For another, China’s is faced with heavy inflation pressure, bringing up the cost in the tire industry and consequently reducing the competitiveness of Chinese exports. China’s tire export industry is also affected by trade conflicts. Take tires for passenger vehicles as an example. In 2011, the value of tire export to the U.S.A. dropped sharply to $968 million due to the tariff imposed on Chinese tires. It takes three consecutive years for China’s tire export to the U.S.A. to quickly rebound.
