Representatives are concerned about the three hot issues in the rubber industry

Chairman of the Rubber Industry People's Congress, Cao Chaoyang from Fengshen Tire Co., Ltd., along with Ding Yuhua, Secretary of the Party Committee and Chairman of Triangle Group, highlighted key issues during the National People's Congress. They emphasized three major topics that are critical to the development of the rubber industry. Since the end of the Tenth Five-Year Plan and the Eleventh Five-Year Plan, the rubber industry has consistently followed the principles of scientific development, brand strategy, and circular economy. Through independent innovation, it has achieved sustained, rapid, and healthy growth. For example, tire production has seen an average annual growth of 18%, with a 5 percentage point increase in radialization each year. Export volumes have grown by over 20% annually. In 2007, China produced 330 million tires, ranking first globally, with a radialization rate of 70%. Among the top 46 tire companies, 237 million tires were produced, including 177 million radial tires, with a radialization rate of 74.7%, close to developed countries' levels. Exports rose by 28.6%, with radial tires accounting for 83.4% of total exports. High-tech, high-value, and high-content tires, such as tubeless, wide-section, and low-profile radial tires, dominate the market. However, current domestic policy imbalances have become a bottleneck for the industry's sustainable development. First, natural rubber is still classified as a restricted import product, which is unreasonable and does not meet actual needs. Since 1999, natural rubber imports were considered restricted, but after WTO accession, the quota system was abolished, and tariffs increased to 20%, instead of decreasing. Currently, 70% of natural rubber used in China is imported. Utilizing foreign resources with advanced domestic technology and exporting products helps solve employment and promote technological progress. Domestic synthetic rubber cannot match the demand in the short term, especially for radial tires, which mainly rely on natural rubber. Therefore, maintaining high tariffs on natural rubber hinders development. It is recommended that natural rubber no longer be classified as restricted and that import tariffs be reduced to 5–6%. Second, radial tires, engineering tires, and green additives—high-tech products with strong international demand—should be supported through processing trade to expand exports. Over 850 million tires circulate globally annually, with radial tires accounting for a large share. Foreign companies have established factories in China, contributing to technological transfer and local innovation. Processing trade plays a key role, with 40–45% of tire exports made via this model. China has become a leading producer and exporter of radial tires, and processing trade is crucial for the industry’s sustainable growth. Third, the rubber industry should not be categorized as "two highs and one capital" (high energy consumption, high pollution, resource-based). Its development model, involving imported raw materials and processing, should be encouraged rather than restricted. The industry has significantly improved energy efficiency and environmental practices. Wastewater is nearly fully recycled, and emissions are effectively controlled. Natural rubber, though mostly imported, supports resource optimization. Synthetic rubber uses by-products from oil and gas, aligning with national policies on efficient resource use. Restricting natural rubber or limiting exports would hinder development and harm social stability. For instance, if 20% of tire exports were halted, it could lead to domestic oversupply and idle capacity, negatively impacting the industry's long-term growth.

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