Do Chinese tires affect the business of national companies? This is what the Ministry of Economy says

2024-04-09 14:01:08

The Secretary of Economy clarifies the impact of the sale of chinese tires in the business of National companies in Mexico.

And, according to a recent study, these foreign tires could have repercussions for the producers of these pieces of automobiles y trucks.

Since this business has proven to be competent in the market, the question arises of Do Chinese tires affect the business of domestic companies? We tell you.

We tell you why it is important to recycle used tires (Freepik)

Chinese tire companies would affect national trade

National industries asked the Secretary of Economy to begin an investigation for alleged unfair practices of international trade since November 30, 2022.

According to the complainant, the chinese tire industries would have engaged in unfair practices in their form of price discrimination.

The complainant companies were:

• Bridgestone of Mexico
• Tornel Rubber Company
• Continental Tire of Mexico
• Michelin Industries
• National Chamber of the Rubber Industry

According to the report that studied radial tires for cars and trucks with a nominal inner diameter of 13 to 22 inches originating from China, it was concluded that Yes, there is a threat to national production.

After a year of investigation, said information was verified in the Official Gazette of the Federation, clarifying that although compensatory fees will not be imposed, a threat to the tire industries of Mexico was demonstrated.

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“The investigation procedure continues regarding unfair international trade practices in the form of price discrimination, without imposing a provisional compensatory quota on imports of new pneumatic tires of radial construction for automobiles,” indicated the Secretary of Economy.

Chinese tires do not represent a significant threat, says the Secretary of Economy

The Secretary of Economy reported that tire imports from China represent 6% of the total market in Mexicofigures that do not represent a “significant threat.”

However, it was found that there is a margin of price discrimination in the industries of:

• 3.19 dollars per piece of Shandong Linglong Tire
• 1.66 dollars per piece of Shandong Changfeng Tire
• 6.28 pesos per piece for Wanli Tire

Among other brands that sell for less than 4.16 dollars it’s found:

• Zhongyi Rubber
• Shandong Fengyuan Tire Manufacturing
• Shouguang Firemax Tire
• Qingdao Nexen Tire Corporation

Tip to cool the car quickly without air conditioning (Julian Hochgesang / Unsplash)

2024-04-09 14:01:08