#Two Sessions# Proposal from business tycoon (1)

China should reduce or cancel import tax for natural rubber to relief tire manufactures’ pressure, said Guo Guangchang on 2015 NPC and CPPCC sessions in Beijing.

As chairman of Fosun Group, whose businesses span steel, mining and property, Guo Guangchang’s proposal on rubber and tire industry looks very special.

Guo said, Chinese tire manufactures is now facing double tax pressure. One is 20% of tax collected on imported rubber. The other one is U.S. levying 12.03% of anti-subsidies duty on tires for passenger cars & light truck from December 2014 and 19.17%-87.99% of anti-dumping duty on tires for sedan cars & light trucks both imported from China.

Such heavy tax will hurt Chinese tire industry heavily, not only reduce tire manufacture’s profit, but also push tire industry transferring into other countries in Southeast Asia which are no need to be collected NB tax and tire tax both, Guo said.

In that case, Guo proposed that firstly, China should reduce tax for imported natural rubber from 20% to 2%, or to zero.

Secondly, China should build commercial rubber storage system to adjust rubber price’s fluctuation.

Thirdly, China should set up NB price stability fund to stable NB price via futures lever action.

Fourthly, China should stop “Technology Standards for Compounded Rubber” (GB/T 31357-2014) issued on December 1, 2014.