Exports of Chinese Tire Industry Are Not Very Promising in 2009

– In April 2009, the tire yields in China wereof new inflatable rubber tires for the motor vehicles,
increased by 13.7% to 58.15 million stripes compareddown by 12% and accounting for 38.8% of the total
with the same period of last year. During January toexport volumes. The exports of the new inflatable
April of 2009, the total tire yields were 185.6 millionrubber tires for the bicycles were 22.02 million stripes,
stripes in China, up by 0.2% YOY. The increases ofdown by 35.9% and accounting for 27%. Besides,
the tire yields largely attribute to the ease ofthe exports of the new inflatable rubber tires for the
obtaining loans, the pursuit of high operation rate andpassenger vehicles and cargo trucks amounted to
the blind optimistic to the economic tendency. By9.54 million stripes, down by 30.9% and accounting
contrast to the promising production situation offor 11.7%.
Chinese tire industry, the exports are not very 
promising.Affected by the international financial crisis, the
 automobile consumption was cut down obviously in
During January to April of 2009, China totallythe international market in 2009 and the sales
exported 81.31 million stripes of tires, valuing 2.01volumes continued to drop. The depressed demands
billion USD, down by 23.3% and 21% respectivelyin the downstream led to the fast shrink of the
compared with the same period of 2008, in whichdemands for the tires in the international market.
the exports in April were 23.16 million stripes, downTaking America for example, according to the
by 19.2% and valuing 580 million USD, down by 16.1%.statistics released in 1st May, 2009, the automobile
 sales were cut down by 34.4% YOY in April 2009
China’s tire exports are mainly characterized asand reached the bottom low over the past 30 years,
follows:which was the successive sales decline for 18
1. The monthly exports volumes were rising. In Julymonths. At the same period, the sales amounts of
2008, the monthly tire export volumes broke throughChrysler, General Motors and Fort were cut down by
30 million strips in China, the highest point since48%, 34% and 32% respectively. Besides, the
January 2008. In the later successive seven months,drivers also cut down the travel plans, which also cut
the exports cut down and showed the obviousdown the torn of the tires, postponed the
growth in March 2009. In April, the export volumesperformance of the tires and reduced the
continued to keep above 23 million stripes. The actualreplacement of the tires.
exports amounted to 23.16 million stripes, down by 
19.2% YOY and holding the line at link relative ratioFrom January to May of 2009, China produced
compared with March 2009.4.8377 million automobiles and sold 4.9568 million
 automobiles, up by 11.10% and 14.29% YOY
2. Over 80% tires were for the export processingrespectively. The yields and sales of the passenger
trade and the general trade was cut down obviously.vehicles were 3.52003 million and 3.6609 million, up by
From January to April, China exported 67.46 million15.61% and 21.20% YOY respectively. The yields and
stripes of tires by means of processing trade,sales of the commercial vehicles reached 1.3174 million
decreased by 21% and accounting for 82.9% of theand 1.2959 million, the yields up by 0.62% YOY but
total tire export volumes of the same period in China.the sales down by 1.56% YOY.
At the same time, China exported 13.03 million stripes 
of tires by means of general trade, down by 34.9%Chinese tire industry faces the further aggravated
and accounting for 16%.international trade environment. In the end of April
 2009, America suddenly put forward special
3. The major export destinations were America,safeguard investigation into Chinese tire consumption.
Europe and Africa. From January to April, ChinaThe involved export volumes and amounts
respectively exported 21.08 million, 16.34 million andrespectively accounted for 75% and 88% of the
10.44 million stripes of tires to America, Europe andtotal export volumes and amounts. America is
Africa, down by 25.7%, 20.9% and 18.8%, in whichChina’s largest target country of the tire
the total export volumes accounted for 58.8% ofexports, accounting for one third of the total export
the total tire export volumes of the same period.volumes and one fourth of the total export amounts.
 Once America restrains the total import amounts of
4. The foreign funded enterprises showed the largesttire from China, China’s tire exports will cut down
reduction rate. From January to April, the foreignby 6%. What is much worse, if America carries out
funded enterprises exported 46.35 million stripes ofthe special safeguard, the other members of WTO
tires, down by 27.6% and 4.3 percentage pointscan carry out the special safeguard measure for
higher than the general export reduction rate of theChina’s tire exports without investigation at
same period in China, but accounting for 56.9% ofrandom.
the total tire export volumes in the same period in 
China.When the yield increases in Chinese tire industry, the
 continuous decline of the exports and the limited
5. The exports of the new inflatable rubber tires fordomestic demands, the inventories of the enterprises
the motor vehicles accounted for near 40%. Fromwill rise and further affect the capital flows, leading to
January to April, China exported 31.55 million stripesthe profit decline even losses.