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Ningxia Shenzhou Tyre showed large decline on OEM

Recently, Ningxia Province released its international trade statistics.

In the first half year, there was 1.98 billion yuan of process trade value realized in Ningxia Province, year-on-year increasing 18.6%, but process trade  value yearly declined 92% in Ningxia Shenzhou Tyre Co.,Ltd..

An insider said that Shenzhou Tyre's process trade largely declined  from first quarter of 2019.

In a long term, Shenzhou Tyre is one of major process trade companies in Ningxia Province.

Processing trade refers to the business activity of importing all or part of the raw and auxiliary materials, parts and components, accessories, and packaging materials from abroad in bond, and re-exporting the finished products after processing or assembly by enterprises within the mainland. It includes processing with supplied materials and processing with imported materials. Under processing with supplied materials, the imported materials and parts are supplied by the foreign party which is also responsible for selling the finished products. An operation enterprise in processing trade does not have to make foreign exchange payment for the imports and only charges the foreign party a processing fee. Under processing with imported materials, the operation enterprise makes foreign exchange payment for the imported materials and parts and exports the finished products after processing.