Special safeguard measures of U.S. on tires export will expire on Sep.26

As U.S. has initiated further application to defer special safeguard measures on China's tires exporting in the last half year before the deadline, the measures will be expired on September 26th.

According to management of tire industry in China, the expiration will make tariffs back to 4 percent, but at the same time may trigger a round of a battle of market share contest among related companies.

Many companies gave up market shares in U.S. after the country initiated the special safeguard measures, and transfer to other market like Canada or Taiwan, said the management of Zhongce Rubber Co.,Ltd.

For example, export of Zhejiang province, the second largest tyre exporting port, has been decreasing since the year 2009, with export of $200 million,$140 million and $130 million in the year 2009,2010 and 2011, compared the $240 million export in the year 2008.

According to Rubber Association of China, special safeguard measures have made related Chinese companies to loss more than $1 billion, and 10,0000 jobs.

Zhang Chi, an analyst from Citic Securites, said that expiration of the measures will increase profits of related companies for at least 5 percent, and more diversified products will be exported to U.S..

China's tires are mainly participate in the second level market or automobile repair market, which are more sensible to market prices. So after the expiration of the measurements, China can reach larger market shares in U.S..