Advantages and Disadvantages for Tyre Companies to Build Factories Overseas.

From June 28th to 29th, the heads of state of China and the United States met at the G20 summit. The US side said it will no longer impose new tariffs on Chinese exports.


The tire industry did not respond much to this news.


Some people told the Tire World Network that although the Sino-US trade friction has pressed the "pause" button, the tariffs imposed on it have not been cancelled, and the export trend of Chinese tire companies still exists.



Since March last year, the Sino-US trade war has prompted more Chinese tire manufacturers to generate ideas for transferring some of their production capacity to countries such as Vietnam and Cambodia.


Not long ago, a senior executive of Shandong Kemai Rubber Group Co., Ltd. said that due to the Sino-US trade war, they plan to increase the proportion of tires produced overseas from 20% to 50%.


At the same time, they will build their own tire factories overseas and no longer outsource to local companies.


The executive said: "The time is ripe and the company's supply chain infrastructure has improved."


Another person in charge of the company believes that there are some unfavorable factors in Chinese companies operating overseas.


It is understood that this company has already moved part of its business to Southeast Asia.


A factory manager at the company complained that the productivity of Burmese workers is lower than that of China. If the roads are flooded during the rainy season, there will be a power outage of eight or nine hours a day.


He said: "If it is not a Sino-US trade war, we will definitely not come to Myanmar to open a factory."


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