Chairman of the People's Congress of the Rubber Industry, Cao Chaoyang from Fengshen Tire Co., Ltd., and Ding Yuhua, Party Secretary and Chairman of Triangle Group, highlighted three key issues during their participation in the National People’s Congress. These issues reflect the current challenges and opportunities facing the rubber industry in China.
Since the late period of the "Tenth Five-Year Plan" and the "Eleventh Five-Year Plan," the rubber industry has focused on scientific development, brand strategy, and the implementation of a circular economy. Through independent innovation, it has achieved sustained and healthy growth. For example, tire production has grown by an average of 18% annually, with the radialization rate increasing by about 5 percentage points each year. Export volumes have risen by over 20%, and by 2007, China produced 330 million tires, ranking first globally. The radialization rate reached 70%, with leading companies achieving a radialization rate of 74.7%, close to that of developed countries. Exports accounted for 83.4% of radial tire exports, showing strong international competitiveness.
Despite this progress, some domestic policy regulations are creating obstacles. First, natural rubber is still classified as a restricted import product, which is not aligned with current needs. Although it was once considered to protect domestic production, the quota system has largely met demand, and the tariff of 12% had minimal impact. After WTO accession, the quota was removed, and tariffs increased to 20%, which is counterproductive. With 70% of natural rubber imported, and synthetic rubber unable to meet short-term demand, maintaining high tariffs hinders economic and technological development. It is recommended that natural rubber be reclassified and tariffs reduced to 5-6%.
Second, products like radial tires and green rubber additives require support. These high-tech, labor-intensive products are in high international demand. Processing trade plays a vital role, with over 40% of tires exported, and many enterprises relying on processing trade. Foreign investment has also helped boost domestic innovation, making China a major player in global tire manufacturing.
Third, the rubber industry should not be labeled as a "high energy consumption, high pollution, resource-based" sector. It has made significant progress in energy efficiency and environmental protection. Large enterprises recycle nearly all wastewater, filter out 90% of emissions, and use advanced technologies to reduce waste. The industry efficiently uses resources, including both agricultural and petrochemical materials, aligning with national sustainable development goals.
If policies continue to restrict imports and limit exports, the industry may lose its competitive edge, leading to market imbalances and unemployment. For example, if 20% of tire exports were blocked, it could cause a surplus and idle capacity, hindering long-term growth. Therefore, clear and supportive policies are essential to ensure the continued development of the rubber industry and contribute to a more balanced and sustainable society.
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