Ten Major Development Opportunities for China's Rubber Industry in 2012

At the recent 2012 China Rubber Annual Conference hosted by the China Rubber Industry Association, the association's president Fan Rende pointed out that under the national policy tone of 'seeking progress while maintaining stability', considering both domestic and international markets as well as upstream and downstream industries, the Chinese rubber industry will welcome ten major development opportunities in 2012.

The first is the development opportunity of the new materials industry. According to national planning, by 2015, the scale of strategic emerging industries in China will account for 8% of GDP, and by 2020, it will account for 15%. New materials closely related to the rubber industry, such as aramid 1313, aramid 1414, ultra-high molecular weight polyethylene fibers, and carbon fibers, will develop rapidly during the 12th Five-Year Plan period, promoting the adjustment of the raw material structure in the rubber industry.

The second is the development opportunity of resource comprehensive utilization industry. The '12th Five-Year Plan for Resource Comprehensive Utilization Guidance' issued by the National Development and Reform Commission has once again listed waste tires as a key area for recycling and utilization of renewable resources, which will further promote the development of resource recycling industries such as tire retreading, rubber powder, and reclaimed rubber in China.

The third is the market opportunity for new energy vehicles. Industry insiders expect that the planning for the new energy vehicle industry may be released in 2012, and various cities will also introduce a series of local support measures. The development of new energy vehicles not only provides a new market for tires but also offers market opportunities for rubber hoses, belts, and other products suitable for new energy vehicles.

The fourth is the market opportunity for automobile exports. As China's automobile production currently exceeds sales, further expanding automobile exports is an inevitable trend.

The fifth is the development opportunity of the information technology industry. Against the backdrop of national support for the information technology transformation of traditional industries, the rubber industry has already carried out information technology work in enterprise management, the Internet of Things, modern marketing, etc., achieving good results in improving efficiency, reducing costs, and stabilizing product quality.

The sixth is the opportunity for foreign investment and mergers and acquisitions. Due to trade protectionism from Europe and the United States, domestic tire companies will inevitably choose to set up factories and acquire overseas.

The seventh is the market opportunity in Russia. According to World Trade Organization regulations, in the coming years, Russia's import tariffs on tires will gradually decrease.

The eighth is the market opportunity in the Arab region. China's bilateral trade with Arab countries has an average annual growth rate of 27%, far exceeding trade development with other countries. Moreover, the current total trade volume between China and Arab countries accounts for less than 5% of China's overall foreign trade, indicating significant potential for future growth.

The ninth is the market opportunity in ASEAN. According to the 'China-ASEAN Comprehensive Economic Cooperation Framework Agreement', from 2011 to 2015, the vast majority of products traded between ASEAN countries such as Vietnam, Laos, Cambodia, and Myanmar and China will achieve zero tariffs.

The tenth is the opportunity for technology imports and talent introduction. In the current context of a sluggish global economy and poor employment situation, Chinese enterprises should seize the opportunity to introduce talent and technology, accelerating the establishment of strategic reserves of talent and technology. In 2012, the Chinese rubber industry welcomed ten major development opportunities. Faced with such favorable development opportunities, many enterprises in the rubber industry should seize the opportunities while also preparing to meet challenges, shining brightly in the development of the rubber industry in 2012.