China Rubber Association: Insight into the Development Code of the Tire Industry in China

In the next few years or more than a decade, China's tire industry must realize the following factors in order to achieve health, science and sustainable development.

The first is the market competition factor.

Now and in the future, the Chinese tire industry must be further developed in the process of how to balance the domestic and foreign demand markets. The capital attribute of the industry may be diversified, and the market driving force will be the decisive factor of industrial reform. Therefore, in the next few years or more than ten years, China's tire companies can not only stay in the domestic market competition and general trade exports, should go abroad to participate in international tire industry division and international operations, from product output to brand output.

Race Wheel has built tire factories in Vietnam and Hangzhou Rubber in Thailand, and Delta plans to build tire factories in Russia and Linglong in Thailand to form a new model of foreign production and sales abroad. "Going out" using domestic and international resources, opening up two markets at home and abroad, establishing and developing a global business strategy is an indispensable condition for an enterprise to become bigger and stronger.

Second, we must attach importance to the development of positioning factors.

China is the world's largest tire producer for eight consecutive years, but it is not a strong country. If we want to improve our position in the international market, we must actively participate in international competition, make greater efforts to promote technological progress and transformation of development methods, create "innovative productivity models for the development of the tire industry," change to rely on investment to expand production, low-level redundant construction. And the expansion of the traditional development model. The overcapacity caused by this model has a great impact on the current competitive landscape and development orientation.

Therefore, we must shift from extensive to intensive, from homogenization to differentiation, from low value-added to high value-added, and from the tire-producing countries to the strong countries to take substantive steps. In other words, it is necessary to effectively control the increment, optimize the stock, and increase the concentration and economies of scale of the tire production.

Third, we must not overlook the factors of technological innovation.

For a long time, tire companies have attached great importance to the scale of production, and they have paid insufficient attention to technological progress and innovation. On the one hand, companies have not organically unified technological innovation and production scale; on the other hand, R&D expenditures for technical innovation have not been sufficient; some companies have invested in technology research and development with a higher proportion of sales, while others have been pitifully low; Moreover, the team of technical personnel is unstable. This has both personal factors and the problem of “digging people”. Some enterprise technology research and development efforts do not really work hard and soft, but engage in "simple replication."

From the perspective of economics, the production scale is concerned with the return on investment, while technological innovation focuses more on the cost and capital activity. Therefore, the impact of technological innovation on the industry will directly determine the future development model of China's tire industry.

In addition, there is an important factor that natural rubber is heavily dependent on the actual situation of imports.

The natural dependence of natural rubber resources in China is too high. The annual domestic natural rubber production is only about 700,000 tons, which only accounts for 25% of the total demand. The remaining 75% needs to be imported from abroad. And China's natural rubber import tariff rate of 20%, is the world's unique high tax rate, South Korea and Japan and other countries are basically zero tariffs.

China is not only a country with severe shortage of natural rubber resources, but also a country with the highest import tariff and the largest consumption of rubber, which seriously restricts the development of the tire industry. Therefore, the relevant government departments are urged to cancel the tariff of 20% and support the development of gutta-percha and dandelion rubber.

At the same time, qualified tire companies should go abroad, plant rubber, open rubber processing plants, and master the initiative of natural rubber from a strategic height.

In 2010, the Ministry of Industry and Information Technology issued the "Tire Industry Policy", which indicates the direction for the development of the tire industry. The question now is how to take effective measures to implement the policy.

In the past two years, some regions have not complied with industry and market access standards, relaxed conditions, lowered barriers, and implemented new projects and expansion projects according to approval. This has led to continued expansion of production capacity, structural overcapacity, and low-cost competition. . Therefore, it is hoped that the relevant state departments will further strengthen policy coordination and supervision, organize and guide local governments and enterprises to strictly implement the “Tire Industry Policy” and effectively promote the scientific development of the domestic tire industry.

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