Chinese Tire Industry Focus on Overseas Expansion Amid Geopolitical & Economic Uncertainty

摘要

The Chinese tire industry,the global powerhouse in production and consumption of tires,had one of the most challenging years in recent history in 2018.Sagging domestic demand and the U.S.sanctions hit the industry very hard.In 2018,the Chinese tire industry had to undergo a slowing economy,more stringent safety and environmental protection inspections conducted across the tire factories in the country,and the fluctuation of major raw material prices,as well as uncertainties in the geopolitical and economic situation around the globe.A number of mid-sized and smaller tire producers in China were squeezed in last three years by rapidly changing demand dynamics in the domestic market,tariff barriers in export markets and increasing raw materials and labor costs.On the other hand,government-driven requirements for supply-side reform,environmental legislation,and supply side and industrial reforms are making it tougher for these smaller companies to survive.