Ding Yuhua: The Low-end Introduction of the National Tire Suspension Tire Industry

At the close of the “two sessions,” Ding Yuhua, the eleventh National People’s Congress delegate and chairman of Triangle Group Co., Ltd., accepted an exclusive exclusive interview with Gasgoo.com in Beijing.

Import of used tires is harmful to the country

Gasgoo.com: At the "two sessions" last year, you put forward a proposal to ban the import of used tires. In this year's "two sessions," you once again recommended that used tires be listed in the import ban, so that you are persistent in making this proposal. What kind of consideration?

Ding Yuhua: The state has a clear policy on the recycling and use of used tires. The Tire Industry Development Policy promulgated in September 2010 specifically stressed that: “In enterprises engaged in the recycling of used tires, the sources of used tires should be based in China.” The “Guided Opinions on Comprehensive Utilization of Used Tires” promulgated at the end of that year was even more clear. It is proposed to “construct and standardize the waste tire recycling system” and “Importantly import illegal tires in disguised form”.

However, in reality, the waste tires in the world are still being continuously imported into the country. The phenomenon of industrial harm and environmental damage is still happening. Among these, the old customs code for imported tires still exists, providing opportunities for the import of used tires, which is the main reason for the influx of used tires. The announcement jointly issued by the Ministry of Commerce, the General Administration of Customs and the State Environmental Protection Administration clearly stipulates strict import of rubber waste tires, but there is no clear legal basis for the import of used tires.

Gasgoo.com: You talked about scrap tires and used tires separately. Is there a big difference between them?

Ding Yuhua: Scrap tires and old tires are difficult to distinguish with the naked eye. In addition to experience, they also need to rely on specialized instruments to identify them. However, a special test equipment is worth more than 20 US dollars. Only when the carcass is not damaged can we confirm that it is an old tire. On the contrary, it is a scrap tire. In the case of large quantities of imported old tires, the Customs can only spot-check, and there will inevitably be a large amount of waste tires. This will not only bring about environmental and safety risks, but also cause inoperability to the law enforcement work of the national quality inspection department. as a result of.

Gasgoo.com: That is to say, the import of used tires is very harmful. So how many waste tires do China produce each year? What are the problems caused by imported tyres?

Ding Yuhua: China currently produces more than 200 million tires each year. However, with the rapid development of the automobile industry, this number will continue to expand. Among them, the refurbished production is about 13 million, less than 5%, while the developed countries' tire renewal rate can reach more than 45%.

China has a serious shortage of rubber resources. Last year, the actual demand for natural rubber was 3 million tons, but domestic production was only about 600,000 tons, and the foreign dependency was over 80%. The harm caused by large quantities of imported waste tires is self-evident: on the one hand, it has caused great waste of rubber resources; on the other hand, it has greatly inhibited the development of the recycling economy of the local tire industry; at the same time, it has also aggravated domestic environmental pressure and turned China into a A “junkyard” of used tires imported from around the world; in addition, used tires also constitute personal and property safety to consumers.

Therefore, the state should immediately legislate to include old tires in the import prohibition list, cancel all related customs codes, and introduce strict regulations to stop production and disposable tire products that do not have the ability to renew, requiring manufacturers to produce new products. In addition, production facilities capable of reusing new products must be constructed as an entry condition for the industry. In addition, preferential policies should be introduced to encourage the recycling of domestic waste tire resources, and actively support the development of tire retreading companies based on local resources.

Projects that do not pass environmental standards should not be launched

Gasgoo.com: China has already implemented "CCC" certification for tire products. Why do you have to propose amendments to relevant certifications and standards?

Ding Yuhua: This standard has been used for 10 years and has now become a backward standard. The main problem is that the safety performance index is low and the environmental performance index is basically blank. There are nearly 200 tire companies that have passed the national “CCC” certification, and about 400 certification certificates. However, these enterprises are in good or bad condition. Many companies have produced and sold products that have been banned by countries such as “standard tires” and “three bags” tires. These products pose a potentially huge threat to consumer safety.

Tyres are important walking parts in automobiles. Their technical properties are directly related to the safety of people and property they carry, and they are related to the performance of automobiles. Therefore, it is imperative to speed up the convergence with international standards and formulate more stringent tire technical regulations and standards.

Gasgoo.com: According to the status quo, the competitiveness of China's tire industry needs to be strengthened. In this sense, the entire industry is facing a transformation and upgrading, not just the problem of refurbishment capacity?

Ding Yuhua: Yes, China's tire industry is facing the development requirements of transformation and upgrading.

Of domestic car and light truck radial tires, 65% are low-end products. These products have low technical performance, low added value, and no international competitiveness. In addition, most of the card passenger car radial tires that are produced and sold in China are disposable products that are discarded and do not have the ability to refurbish.

China has become the world’s largest tire manufacturing, exporting, and consuming country. Last year, Chinese tires accounted for about a quarter of the world's total tire production, and domestic automobile tire consumption maintained an average annual average during the “Eleventh Five-Year Plan” period. The growth rate of %. However, it should be noted that the main problem in the development of China's tire industry is the “quality” problem of the entire industry: the homogeneity of technology, equipment, and products is very serious, and the simple pursuit of volume growth and the simple reproduction of production capacity are satisfied in the market. Spent the price, which makes excess production capacity in the low-end, resulting in a great waste of resources and energy.

Gasgoo.com: You specifically emphasized that there is no environmental indicator in the "CCC" certification. Does this mean that China's tire industry needs to rebuild its environmental protection system?

Ding Yuhua: It is indeed the case. China should first learn from international advanced practices, establish safety and environmental protection technical regulations and standards system for tire products, and re-revise the "CCC" certification standards and technical standards for various types of products. In addition, it is necessary to implement a hierarchical management of tire products, focusing on measuring the environmental performance of tires, including tire rolling resistance, wetland gripping, and external passing noise, to promote tire manufacturers' technological innovation. At the same time, new expansion projects should be strictly controlled, and new standards should be established for production processes, energy consumption, and environmental protection of production enterprises. Those that do not pass environmental protection standards must not be launched.

In addition, it is necessary to clearly state that tire manufacturers have the ability to renew tires, as well as the recycling capacity of used tires, and accelerate the formulation of relevant tire recall regulations.

Should limit the investment of foreign companies in the tire industry

Gasgoo.com: Do you suggest that you must take effective measures to restrict foreign companies from investing in the domestic tire industry? Is this not inconsistent with WTO objectives?

Ding Yuhua: No contradiction. Rubber resources are strategic materials. From an international point of view, governments of all countries have adopted relevant policies and regulations to protect their sensitive industries. The responsibility of the government is to protect its own business and its own citizens. The Chinese government is also understandable in doing so. The key is to introduce relevant standards and regulations, raise the threshold for introduction, and limit the current situation of low-end product “influx”.

Gasgoo.com: Over the years, foreign tire companies have established many factories in China. After the introduction of foreign investment, has the overall level of the Chinese tire industry not been improved?

Ding Yuhua: After China's accession to the WTO, the speed of foreign investment in the tire industry has accelerated significantly. At present, the world's major multinational tire companies have established factories in China, and their total production capacity accounts for 47% of the total industry capacity. During the "Eleventh Five-Year Plan" period, the annual growth rate of foreign-funded tire enterprises reached 23.5%, which greatly exceeded the industry's average growth rate of 15.3% over the same period.

The large-scale entry of foreign capital is not focused on upgrading the level of China's tire industry, but on the market share of China. At the same time, it is attracted by the "enthusiasm" and preferential policies of foreign governments. Therefore, despite the fact that many foreign-funded enterprises do not have the same technical strength as domestic companies, they still rely on the acquisition of backward domestic and bankrupt companies. In recent years, the expansion of foreign tire companies in China has basically relied on the transfer of ordinary and even low-end production capabilities. Up till now, no multinational tire company has established R&D centers and tire testing grounds in China, and none have put core technologies and High-end products have been transferred to China.

Gasgoo.com: This low-end introduction will not be beneficial to the upgrading of China's tire industry, and will it also cause excess capacity, which will have a direct impact on domestic production companies?

Ding Yuhua: At present, the foreign capital absorbed by the tire industry is already in a saturated state. If we do not base ourselves on cultivating independent brands and independent innovation, we still rely on relaxing conditions, lowering the threshold, and indiscriminately introducing foreign capital to develop the tire industry, not only failing to achieve national “12. V. The goal of transformation and upgrading will, on the contrary, further exacerbate the overcapacity situation in the industry, cause even more severe impacts and squeezes on local tire companies, and finally make China's tire industry fall into a disaster situation.

After years of hard work, the technology research and development capabilities of domestic-funded tire companies already have a certain foundation, and some companies have completed the industrialization of a full range of tire products, including the giant tire radial tire, relying on independent innovation. Considering the long-term development of China's tire industry, it is recommended that the State no longer approve foreign investment tire projects in order to better promote the restructuring and independent innovation of China's own brands.