China imports wheels or will be subject to anti-dumping duties from Australia

According to GoAuto, an Australian media report, Chinese aluminum alloy wheel importers will face anti-dumping tariffs of up to 87.8% after the Australian government has investigated and determined that China sells under-priced car tires to Australian automakers and parts sellers. Australian Customs investigators found that the Chinese government provided 34 assistance to its manufacturers, including cheap aluminum from state-owned aluminum smelters and a series of tax cuts.

Ford Australia and Holden-General Motors Australia are both facing complaints from Australia's largest alloy wheel manufacturer, the Arrowcrest Group based in Adelaide, which has experienced significant wheel sales since 2003. Landslide, in order to save its factory in Woodville and 140 employees from bankruptcy and unemployment, this time with the support of two small manufacturers to file a complaint.

The survey began in November of last year and preliminary survey results were announced in April. Tariff standards range from 2% to 87.8% for different importers and will take effect on June 11.

China CITIC Decker Wheel Manufacturing Co., Ltd. faces a wheel import tariff of 8.2%, which is at the low end of this range, and the world's largest alloy wheel manufacturer, Youfa International, will face a sharp 87.7% tariff blow. At the same time, all manufacturers who refuse to cooperate with the Australian Customs and Border Protection Bureau will face this heavy tax measure.

Arrowcrest Group regards the import of cheap wheels as unfair competition. Australia’s ROH (the Arrowcrest Group, founded by the British consortium in Woodville and has been headquartered in Adelaide since 1946), Peter Htichen, national sales manager, said in an interview on this site that Arrowcest’s previous production of wheels was 65,000 pairs have fallen to an annual output of 9,000. He also stated that ROH once provided steel and alloy wheels for all automakers in Australia, but now Australian automakers using original equipment only have Toyota Australia.

The Arrowcrest Group complained to the federal government that a local car dealer used Chinese product prices as a standard to depress the prices of locally produced wheels, resulting in unprofitable local products. The group also pointed to the falling prices of Chinese wheels, even though Chinese aluminum prices have risen to 80% of the global market. A Chinese manufacturer will reduce the price of wheels provided to an original equipment manufacturer to US$40-50 (approximately RMB254-318), replacing the 10-year supply agreement between the manufacturer and Arrowcrest Group.

The conclusions of the survey are as follows: “The analysis and evidence provided by Arrowcrest Group can fully prove that China’s export and alloy wheels were involved in dumping and/or price reductions. During this survey, there was a price depression in the Australian industry, which resulted in a low price in the Australian industry. The formation of repression constitutes substantial damage."

In the face of China’s competition, not only Australian wheel manufacturers have experienced a decline in performance, but wheel importers in other countries are facing more severe declines.

The dumping declaration and follow-up action is Australia's first measure for the wheel industry. According to the official report, two alloy wheel retailers Bob Jane T-Marts and Speedy Company “have refused to cooperate”. Obviously, many wheel retailers are dissatisfied with the developments and are concerned that the rapid growth of prices will have an adverse effect on their business and even be in trouble.

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