Customs says China's tire industry faces huge surplus capacity after U.S. slaps antidumping duties
Since the Obama administration slapped anti-dumping duties on China-made tires on September 26, China's tire exports to the United States have tumbled, resulting in a huge surplus tire manufacturing capacity in China, according to statistics released by Chinese customs.
In October, China's tire exports to the U.S. dropped 37.5 percent year-on-year to $130 million. The figure was a record low for the preceding 44 months, China's General Administration of Customs said in a statement.
As it cannot cope with the risk brought by the anti-dumping duties in the short term, China's tire industry now faces 10 percent-15 percent surplus production capacity, the customs also said.
To avoid the risks, some South Korean tire makers have already decided to relocate their facilities from China to other countries, it added.
Since September 26, China-made passenger vehicle and light truck tires imported into the U.S. have been subjected to an additional 35 percent import duty for the duration of a year. The duty will be lowered to 30 percent in its second year and 25 percent in its third year.
