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Research report on Shandong tire exports

By Li Huayu (chinadaily.com.cn)
Updated: 2006-11-07 08:40

In recent years, due to China's relaxation of the restrictions on the tire industry and the gradual sophistication of tire production technologies, foreign and private funds have begun to flood into the tire industry. As one of the largest tire producing provinces, Shandong, in East China, has made eye-catching achievements in the tire industry through product upgrading, technological renovation and new project investment. Despite the progress, however, the country's tire exports still have many urgent problems to be tackled, such as raw materials price hikes, industry competition disorder and increased trade barriers.

Shandong's tire exports have maintained a strong growth momentum. In 2005, its tire export value reached about US$1.20 billion, accounting for 31.7 percent of the nation's total and up 59.7 percent year on year. In the first four months of this year, its export value was US$470 million, a year-on-year growth of 44.4 percent.

Shandong's tire exports have several features. In terms of trading patterns, processing trade takes the dominant position. Processing trade exports hit US$1.18 billion, up 59.5 percent year on year and accounting for 98.3 percent of the province's total exports.

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The full text is available in the November Issue ofAutoChina.