Chinese Tire Company Wins Lawsuit All Steel Tire Is Expected to Return to Europe

According to Sealand Securities Research, on May 4, 2022, the General Court of the European Union made a ruling of first instance: revoke the European Commission's anti-dumping and countervailing duty order on Chinese passenger car tires, and the European Commission and its supporting parties bear the litigation costs. Under the law, the commission still has two months to decide whether to appeal against the verdict. If the commission drops its appeal two months later, the ruling will take effect and importers who sue companies will be refunded in full.

In 2018, the European Union implemented anti-dumping and countervailing duty orders against Chinese truck tires (TBR), each truck tire needs to pay a fixed duty of 42.73 to 61.76 euros. According to the General Administration of Customs, China's annual export of passenger cars or freight tires to EU member states was about 399,000 tons in 2017 before the launch of the anti-tariff measures, which fell to 208,000 tons in 2018 and 164,000 tons in 2019, down 58.9 percent from 2017.

According to China Rubber Magazine, more than 20 Chinese tire companies, including Zhongce, Sanjiao, Fengshen, Linglong, Sailun and Purin Chengshan, are suing the EU for the case against China's TBR tires.

Sealand securities believes that the first instance of the cancellation of anti-dumping and countervailing duty order, China truck tires exported to the EU, only to pay 4.5% of the basic tariff, China truck tires in the European market competitiveness, domestic steel tires are expected to return to the European market, is expected to change the domestic steel tire competition pattern.