Not to be undone, major exporters adopted a positive attitude to these adverse factors.

When the global anti-dumping protests pointed an accusing finger at China, the country took it in its stride. It responded to all lawsuits leveled against it. When South Africa too joined anti-dumping campaign for tyres made in China, the China Rubber Industry Association (CRIA) organised what was called “China’s Enterprise,” campaign with a view to positively responding to the protest. China was able to convince her detractors about the high quality and reasonable pricing of her products.

Though priced lower there is no compromise when it comes to performance. Every year, radial truck tyre exports account for one-third of the total radial truck tyre output of the country. In respect of high-speed, high-load and other performance, there is no disputing the fact that Chinese tyres are the most trusted.

Will you touch on the rubber industry’s development in different fields in 2006?
Yes. Following is the category-wise assessment.

Rubber consumption: In recent years, rubber consumption in China has been on the rise annually. In 2006, it touched 4.5 million tonnes. The NR consumption was 2.1 million tonnes and SR 2.4 million tonnes.

Tyre: In 2006, Chinese radial tyre output grew by 60% registering a 5% increase over the previous year.  The passenger radial tyre and light truck radial tyre of foreign tyre manufacturers continued to lead the market and their market share reached 70%. Chinese tyre manufacturers are also gradually expanding their marketshare with launching new products and scaling new heights of growth.
Flat contour tyres and high-performance radial passenger tyres are becoming the main products of South China Tyre Co., Ltd., Triangle Group Co., Ltd., Shandong Linglong Rubber Co., Ltd., and Hangzhou Zhongce Rubber Co. Ltd.

The radial truck/bus tyres too maintained steady growth trends. The technology for large and middle off-the-road radial tyres improved significantly, and it is becoming a new growth point for Shanghai Tyre & Rubber Co., Ltd., Triangle Group Co., Ltd., Guizhou Tyre Factory and Aeolus Group Co., Ltd. The total output for bias tyre fell by 3% to 5% in 2006. This was the first incidence of negative growth since the government gave the green signal for radial tyre development.

Rubber belt: The high-strength conveyor belt output from Qingdao No.6 Rubber Group Co., Ltd., Zhejiang Double-arrow Rubber Co., Ltd., Liaoning Fuxin Rubber (Group) Co., Ltd., Shanxi Phoenix Co. and Wuxi Botton Belt Co., Ltd. accounted for 40% of total output.

Circle casing tyre: As for the electric bicycle industry, the circle casing tyre is on an uptrend giving a fillip to the Chinese circle casing tyre industry.

Rubber chemicals:  The sales of Shandong Yanggu Huatai Chemical Co., Ltd., Shanghai Sinochem (Group) Co., Ltd., Shandong Shanxian Chemical Co., Ltd. and Nanjing Chem Corp. Chemical Plant accounted for more than 35% of the total rubber chemicals sales in 2006. Their  products were largely environment-friendly.

Carbon black: Wet type pelletising carbon black (CB) accounted for 70%-80% of the total CB output in 2006. In 2006, the second set of CB equipment and technology of China Carbon Black Research & Design Institute was exported. This is a pointer to the indigenous technology innovation China has achieved in carbon black technology.

Scrap rubber utilisation: In 2006, CRIA and China Environmental Protection Industry Association spent one and a half months on a probe into waste rubber utilisation in main production areas and key manufacturing units. It offered an opportunity for manufacturers to have a better understanding of the scrap rubber production leading to a resolve to take eco-friendly measures in production process.

Further process and application for reclaimed rubber and rubber powder also got a good start. The industry launched new odourless reclaimed rubber and the trend has caught on. Large tyre companies started focusing on retreading tyre, resulting in the selling up of a number of retreading tyre plants by them.

Rubber machinery: The research, development and manufacture of special radial tyre equipment showed obvious improvement. Thirty-five sets of OTR radial tyre equipment and truck radial tyre equipment got state approval in 2006.

Thirty of China’s rubber machinery manufacturers have been listed in the top rubber machinery makers in the world during the year. In addition, China’s production technology for radial tyre mould took a leading position in the world.

The value of exports accounted for over 30% of the total sales. About 120 million tyres were exported. The exports made by members of CRIA accounted for 42.4% of the total output. Exports of domestic tyre plants grew by 19.9% and exports of foreign tyre plants grew by 12.6%.

CRIA issued a Planning Advice on China rubber industry scientific development during the 11th Five-Year Plan. The advice focused on independent innovation, products upgradation and trans-formation of the growth mode, so as to achieve the industry’s goal of emerging as a powerful force in global rubber industry.

CRIA also formulated planning strategies to top rubber brands. The stress was on bringing out more top products to support the rubber industry’s development. Eight types of rubber products have been included in the list of top brands.

To regulate rubber imports market, CRIA and Qingdao Bonded Zone made a united commit-ment to open Qingdao International Rubber Exchange Market. In addition, CRIA held the first China Rubber Conference in Yunnan to set up a direct platform for interaction between NR producers and users. Besides, CRIA exhorted private NR producers to vigorously improve NR clones, expand their plantations, innovate processing and strengthen cooperation.

The tyre branch of CRIA and tyre sales committee of CRIA put forward proposals to reduce tyre overpack and not to sell the tyres without the trademark in print.

Thanks to the relentless efforts of CRIA in 2006, the tax on bias tyres was reduced from 10% to 3%. This has helped in cutting production costs of bias tyres. The Association has also called on the government to ban imports of scrap tyres, and to protect the environment from waste rubber processing.

In 2006, CRIA took active steps towards the protection of property rights of rubber products, and boldly faced the anti-dumping issues of Chinese rubber products. CRIA has set up an engineering college in association with MESNAC.

The overall objective is to lay a solid foundation for the Chinese rubber industry based on the principles of discipline, technical innovation and scientific development. Meanwhile, all steps will be taken to cut risks. The Chinese rubber industry’s sales are set to jump from 8% to 10% in 2007.

In the second half of 2006, the related departments proposed a new concept for industrial security. As far as Chinese rubber industry is concerned several issues are perceived as being dangerous for the industry’s security. The first issue is that of excessive import of some raw materials. NR consumption and imports grow year by year and the total consumption and imports account for about 22% of the worldwide NR yield and NR consumption, respectively. The volume of SR imports increased with varieties like halogenated butyl rubber topping the demand.

Secondly, there has been a disorderly expansion of rubber products’ output. It has created such a chaotic situation wherein the output is more than the demand. If this situation continues, the market will soon be in total disarray.  Thirdly, the system of independent innovation is yet to get a grip over the industry. This is one field where CRIA will step in.  

CRIA will develop research and development centres to focus on tyre and carbon black industries in 2007. It will attempt to build new economic entities combining production and technical research. Rubber industry experts of the Technology Economic Committee of CRIA will put forward scientific and technological development trends, provide independent research and development projects, help innovation and optimise product structure.

As for fresh anti-dumping cases, CRIA will take the lead in organising and coordinating cases, resolving contradictions, and building a harmonious international trade environment.

As for foreign investment in setting up rubber plants, merger and acquisition of Chinese rubber ventures, the state has come out with a united tax policy after putting forward reasonable conditions for foreign investment. The idea is to help development of both foreign-funded enterprises and domestic enterprises equally. The country needs to avoid the risks of foreign enterprises consuming a large part of China’s market by acquiring large rubber companies.