72-Hour FireWire Battle Tire Industry 7 Giants Go to US Emergency "Anti-Special Protection"

[Core Tip: This may be the first lobbying war against Chinese companies in the field of anti-special protection. This lobbying warfare involved 30% of the capacity of the Chinese tire industry and the death of 200,000 industrial workers. Its origins are the recommendations made by U.S. Trade Representative Kirk on June 29, requesting the tariffs of 55%, 45%, and 35% to be imposed on China's imported light passenger vehicle tires for three consecutive years. The current tariff level is 3.4%-4%. 】

“We have the determination and confidence to allow communication to achieve good results, so that President Obama decided not to take special safeguard measures before September 17.” At 8 pm local time on August 4th, local time, Cai Weimin, Secretary-General of the China Rubber Industry Association’s tire branch, was in Washington. The hotel where he stayed told this reporter.

Our reporter was informed that after the arrival of the Chinese delegation on the 3rd, the next day, it immediately initiated the lobbying of the entire Chinese tire industry to lobby the relevant US government departments. The Chinese attorney, David Spooner, revealed to reporters that the Chinese delegation had already met with Ronald Lorentzen, the Assistant Minister for Import Control of the US Department of Commerce.

The reporter also learned that the Chinese delegation will also directly confront the U.S. prosecution of the tire special security case. On August 7, Xu Wenying, Deputy Secretary General of the China Rubber Industry Association, will serve as a witness and speak at the tire special security case hearing held by the USTR. This will also be the last chance for Chinese tire companies to plead.

There is not much time left for Chinese mediation. In the last three days before the hearing, the Chinese delegation will launch a 72-hour fire lobby on the U.S. government. They will meet with assistant ministerial officials from key agencies such as the U.S. Trade Representative Office, the Ministry of Finance, and the State Council to persuade the US not to take special safeguard measures against Chinese tire imports from the United States.

The Chinese side made full preparations for this trip. In terms of public opinion, the Chinese delegation will hold a press briefing in Washington on August 5. The Chinese side also hired the former Assistant Secretary of Commerce of the United States, Spumner, as a defense lawyer.

This may be the first lobbying war against Chinese companies in the field of anti-special protection. This war will affect the employment of 200,000 industrial workers in China. Fan Rende, president of the China Rubber Industry Association, said: "The China Rubber Industry Association and all companies involved will spare no efforts in fighting the matter."

Fireline lobbying

Cai Weimin said: “As such enterprises organized to lobby for the U.S. government against anti-specialty protection, I was not impressed before, at least not in our tire industry.” He also stressed that the cost of this trip to the United States was completely borne by companies. .

The Chinese tire industry delegation landing in Washington has a strong lineup. It is led by Cai Weimin, Secretary-General of the Tire Sub-Council of the China Rubber Industry Association, and Xu Wenying, Deputy Secretary-General of the China Rubber Industry Association. Members include the Minmetals Chamber of Commerce and seven tires in South China and Jiatong Tires. enterprise.

According to the Chinese defense lawyer Sibner, according to the plan, the delegation will meet with the Assistant Secretary-General of the U.S. Department of State on the afternoon of the 5th and will meet with the U.S. Department of Labor, the Ministry of Finance, and the U.S. Trade Representative Office on the 6th. The U.S. Trade Representative's Office is the core department that decides the results of the special safeguard case. Although China has not received an opportunity to meet with U.S. Trade Representative Kirk, he can meet with Tim Stratford, the agency's assistant representative for China affairs. .

As the general commander of the anti-party camp, Spurger left the U.S. government earlier this year. Before that, he was the assistant minister of the Bush Administration’s Ministry of Commerce and was responsible for import management. He is currently an advisor to the US Squire, Sanders & Dempsey LLP.

Our reporter was informed exclusively that at 9:30 on the 7th, the U.S. Trade Representative Office will hold a hearing on tire cases on the same day. Although it has not announced the details of the hearing, the reporter learned from a reliable way that Xu Wenying, the deputy secretary-general of the China Rubber Industry Association, will testify in English.

Both the pros and cons will have 7 or 8 witnesses respectively. The square consists of the United States Steel Workers’ Federation that submitted the special security investigation, and the anti-party is composed of the American Tire Association, the China Tire Association, and Sino-U.S. tire production and marketing companies. Among them, Zheng Fang (Support Special Protection) will send Washington senior trade affairs lawyer Terence P. Stewward to speak, the anti- side will speak by Spuna.

The Chinese delegation’s meeting with Loren Trenson went well on the 4th. “The Ministry of Commerce said that they have not yet made a decision on the special security case, and that no decision is the best news,” Spamboer said.

The special security case is not procedurally handled by the U.S. Department of Commerce. U.S. trade unions initiated a lawsuit against the U.S. Trade Representative’s Office. The International Trade Commission, an ad hoc congressional agency, investigated and decided whether it would cause damage or threats to the U.S. tire industry. Then six members of the committee voted to decide whether to support trade remedy measures. Subsequently, the U.S. trade representative submitted a remedy proposal to the president and the president decided whether or not to adopt the proposal.

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American dealers help

This lobbying warfare involved 30% of the capacity of the Chinese tire industry and the death of 200,000 industrial workers. Its origins are the recommendations made by U.S. Trade Representative Kirk on June 29, requesting the tariffs of 55%, 45%, and 35% to be imposed on China's imported light passenger vehicle tires for three consecutive years. The current tariff level is 3.4%-4%.

In accordance with established practice, the President will also listen to the recommendations of other cabinet departments when making decisions. The Ministry of Commerce is one of them. Therefore, the Chinese side did not find the wrong door with the U.S. Department of Commerce this time.

However, according to feedback from the Chinese participants, the U.S. Department of Commerce did not appear to be in a positive position. "They said that they have not yet reached the time they decided, but they will listen to the questions we reflect and say that they are not the most important decision-making department," recalls Cai Weimin.

Meeting with U.S. government officials is only one of the trilogy of this lobbying warfare. President Fan Rende introduced that the lobbying work is divided into three parts. First, the companies involved will mobilize US dealers to lobby the U.S. government, parliamentarians, and celebrities. Second, the China Rubber Industry Association and the China Minmetals Chemicals Import & Export Chamber of Commerce, respectively, sent letters to President Barack Obama, the U.S. Trade Representative Office, and the American Rubber Manufacturers Association to indicate China’s position. Third, Chinese industry associations and tire companies will hire US public relations companies to lobby. The Chinese side encourages domestic companies to directly use or use the United States to cooperate with importers and distributors, and express their voices against the relevant US government agencies, industry organizations, or individuals in opposing the sanctions against Chinese products involved in the case.

According to a survey by the reporter, various channels are currently working. Up to now, there are three major interest groups related to the tire industry in the United States that openly oppose the special security case. They are the US tire import and export interest group, the three major US auto manufacturers, and the US retail industry interest group.

The reporter contacted Ross Kogal Jr., a tire wholesaler in Michigan, whose 15% tires were provided by China Jiatong. "I will also oppose this decision because it will cause trouble for my supply," said Karger anxiously. He was in contact with his lawyer on the same day and tried to testify in court in Washington. He participated in the hearing held at the International Trade Commission in June.

According to Cai Weimin, the company has hired American public relations to deal with special security cases, and the China Rubber Industry Association is also selecting lobbying companies.

"The key to selecting the standards depends on the company's background and strength," said Cai Weimin.

Lawyer decryption anti-special protection tactics

On August 4th, after receiving the Chinese delegation, Spooner detailed this reporter's "three-step strategy for fighting."

"First of all, the anti-party camp must unite and breathe out a nostril," Spbner said. The anti-party camp includes three parties in two countries: Chinese tire manufacturers, US tire importers and exporters, and US tire wholesalers. At present, the interests of the United States Group and the China Group in the camp have converged. Six US tire importers and exporters and the American Tire Association sent letters to trade representatives and opposed the tire special security case.

In this campaign of anti-special protection, the most critical step of the anti-confrontation camp is to persuade Obama to impose punitive tariffs on Chinese tires that will harm the overall economic interests of the United States.

"U.S. law provides that the President can use the 'undermines the overall economic interests of the United States' as a reason to veto the special safeguard proposal," Spamboer explained. During his term of office, Bush used this reason four times to veto the case concerning the China-US special security dispute.

China’s lobbying efforts are working in this direction. Concerning the statement made by the Chinese side that restricting China’s tire imports from contributing to the U.S. employment, the China Rubber Industry Association refuted Obama’s letter: “Although there are 20,000 tire industry workers in the United States, the import of Chinese tires is handled There are about 200 merchants, more than 43100 retailers, and as many as 100,000 people are engaged in tire import and sales... If you exclude the import of Chinese tires, then these distributors and retailers will face the danger of re-selection or unemployment. The consequences are quite serious."

Spamboer also suggested that China should fight for support from public opinion and put pressure on the U.S. government. "The Chinese side can indicate that if the president supports the special safeguard measures, the Chinese side will resort to this case to the WTO."

The key to this strategy lies not in the WTO ruling itself but in influencing the image of the United States in international trade. “Americans do not want to be seen as protectionists, although sometimes they are doing protectionism,” explains Spooner.

Sbner believes that the meeting this week is more important than the hearing.

“The people of the Trade Bureau at the hearing will ask questions, but the special insurance decision will not be settled immediately. The fastest will be in mid-August, and the latest will be September 17. In this process, the opposing party will ask the U.S. government. Pressure," Spbner said.

The final decision belongs to Obama. On the one hand is the import of tires from China's 1.788 billion US dollars in 2008, and on the other side is the rice bowl of about 20,000 US tire industry workers. Whether to guarantee US trade or ensure US employment? Obama will make a choice before September 17.

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