CRI听力: Increase on Trade Tariff against Chinese Tyres Unwise: Chinese and US Industry Insiders

Chinese industry insiders have joined their US counterparts to protest against a recommendation to impose import duties on Chinese tyres by as much as 55 percent. They say the unwise move will have no positive impacts over the US tyre industry.

Shuang Feng has more.

Reporter:

This round of protests comes after the office of the US trade representative held a hearing on the proposal on Friday.(www.hXen.com)

Liu Yinan is vice chairman of the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters. He says it's unwise for the United States to increase trade tariffs against Chinese made tyres.

"Many facts prove that Chinese made tyres do not compete directly against US made products. Chinese exported tyres have been mainly used in America's post-service market. But America's domestically-made tyres are primarily used in the auto-manufacturing market, so Chinese tyres do not harm America's tyre industry."

Li Yinan rejected accusations that China had been dumping tyres on the US market. He pointed out that a 16 percent year-on-year decrease in the export of Chinese made tyres to the US actually occurred during the first half of this year.

On Friday, representatives of American tyre distributors at the hearing warned that an increase on trade tariffs against low-cost Chinese tyres could cause more job losses in the US.

Some Chinese industry analysts also point out that imposing import duties on Chinese tyres will produce no positive effects for the US tyre industry.

Zhang Yuqing is an analyst from the China University of Political Science and Law.

"This recommendation only advises to impose trade tariffs on Chinese made tyres. But other tyre exporters, like India and Mexico, still can sell their product to the US without restrictions. As our market share is small in the US, tyre exports from other countries will soon fill the gap if the export of Chinese made tyres is restricted. So the measure will still not contribute to the development of the US tyre industry."

The US Steelworkers Union had previously submitted a petition to the International Trade Commission, which recommended a duty hike against Chinese made tyres.

The Obama administration is due to make a final ruling on whether or not to impose the tariff in September.

Shuang Feng, CRI news.