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China is one of the world's largest tire exporters but its shipments to the US have suffered over the past few years. That and on-going trade tensions between Beijing and Washington are driving some Chinese tire manufacturers to find alternative markets to sustain their business. CGTN's Li Jianhua visited a tiremaker in east China and filed this report.
Tires being made in large quantities in a small town tucked away in east China's Shandong Province.
This factory alone produced nearly 27 million tires in the first half of 2018, witnessing a slight increase.
Asian countries had the highest dollar worth of rubber tire exports last year, about 45 percent of global export sales. That's nearly 34 billion US dollars. And China ranked first.
The US is China's largest recipient of tires, accounting for nearly half of China's total tire exports. But current tariffs are believed to be causing havoc throughout the global tire industry.
SUN SONGTAO VICE PRESIDENT, SHANDONG LINGLONG TIRE "China is the largest tire manufacturer globally; it's also the largest tire exporter. When the US levies tariffs on China's tires, as well as imposes other technical barriers, the large volume of tire exports from China will flow into other markets, which will spur even stronger competition in other markets."
The US tariffs on Chinese tires are considered an opportunity for manufacturers based in Thailand as tires made in Thailand aren't subject to the same duties which China faces.
SUN SONGTAO VICE PRESIDENT, SHANDONG LINGLONG TIRE "We have taken some pre-emptive measures to cope with the trade frictions, including the impact generated from trade barriers. Now our plant in Thailand can meet the demands of the US market."
However, experts say US tariffs won't help the US decrease the trade deficit.
LIU CHUNSHENG, PROFESSOR CENTRAL UNIVERSITY OF FINANCE AND ECONOMICS "The US is not strong in manufacturing. In the short term, its imports from China will decrease, but in the long run, it won't help narrow the trade deficit."
LI JIANHUA YANTAI, SHANDONG PROVINCE "The tariffs on China's tire exports to the US are not new. In 2009, when the tariffs were first imposed, many companies struggled, but since then they have rebounded slightly. And some companies, like this one, have built plants overseas in Asia or in Europe with lower costs to minimize the impact of the trade friction. LJH, CGTN, YANTAI, SHANDONG PROVINCE."