Chinese lobbyists to argue against tire tariffs

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A group of Chinese delegates is in the United States to lobby against a proposed increase in duties levied on tires imported from China. It's arguing that Chinese tires pose no threat to the US industry.

The Chairman of China's Tire Industry Association says China exports 13 percent of its total tire output to the US, worth 2.2 billion dollars a year. The US government is considering imposing a special three year levy of up to 55 percent on Chinese tires, up from the current three percent. He says this will affect the jobs of 100 thousand workers in the industry.

Fan Rende, Chairman of China Rubber Industry Association said "If the special protection custom come into effect, it will be a huge rock to Chinese tire industry. The sector may experience a first negative annual growth since China's reform and open-up policy started 30 years ago."

The Chinese lobby team will lobby against the proposed duty, and refute arguments Chinese products threaten the industry and employment in the US.

The China Rubber Industry Association says Chinese tires are not a threat to the US industry at all, as Chinese tires are mostly sold as replacements, while the US products go into auto manufacturing.

Fan Rende said "If the special customs are adopted in the US, other countries in the world may following with other forms of protectionism measures, pushing the world traders into a protectionism swirl. That will be exactly against the anti-protectionism agreement reached at the latest G20 summit. So we will try our best to prevent it from happening."

The Chinese lobby team will attend hearings in the US and express opposition from Chinese manufacturers. The Commerce Ministry has vowed to take the case to the WTO if necessary.