Behind the industry, the government dominates the development of the tire industry
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Government to promote the relevant projects <br> <br> Guangrao is a microcosm of the development of Chinese tire industry. Over the years, the government has played an indispensable role in the development of the local tire industry.
At the Guangrao International Tire Exhibition just past, a local government official who spoke on condition of disclosure revealed: “In order to promote the transformation and upgrading of local enterprises, the government is leading a number of tire-related projects, including the national tire and rubber quality. Inspection center, tire testing ground, bonded logistics park, etc."
It is understood that in order to promote the quality inspection center project, Guangrao County allocated 30.7 mu of land, invested 45 million yuan, and built a laboratory of nearly 20,000 square meters.
Guangrao County Bureau of Quality Supervision Yang Zhenguo had previously revealed to the media that the Guangrao Tire Testing Ground project has a total investment of 1 billion yuan and covers an area of ​​1,500 mu.
Not only in Guangrao, the role of the government seems to be becoming more and more important in the development of the entire tire industry in Shandong.
Government-led industry structure <br> <br> Guangrao tire industry is one of the county's economic pillar industries. The data shows that in 2013, the production capacity of radial tires in Guangrao County exceeded 150 million, accounting for more than 25% of the country and more than half of Shandong Province.
Neither the sea nor the transportation hub, Guangrao has developed into a major producer of rubber tires in China. It is reported that in the course of its development, the local government has always dominated the trend of the industry structure.
From the rubber tube workshops of the 1960s and 1970s to the production of primary tires, from the production of skew tires to the special bases for radial tires, the industrial structure of the area has undergone several adjustments, all with government support and guidance in policy. .
This pattern has developed to today, what is the result?
Deng Yalu, president of China Rubber Industry Association, pointed out sharply at a recent industry conference that Shandong's tire production capacity has expanded dramatically and that “most of the new projects launched are low-level redundant construction.â€
Deng Yayi also said that the domestic tire industry is facing new challenges, "unreasonable industrial structure, low-end product overcapacity, lack of high-end products, fierce competition in homogeneity."
Insiders disclosed to reporters that at present, the operating rate of most tire companies in Guangrao is less than 70%.
Industry shadow government behind <br> <br> a few days ago, by the Shandong provincial government "to resolve serious excess capacity to implement the views contradictory." The document stated that in the future, Shandong Province will no longer approve and record new capacity projects in industries with severely overcapacity, and will strive to effectively eliminate excess production capacity including tires within five years.
Recently, the Ministry of Industry and Information Technology also publicized the newly prepared "Tire Industry Access Conditions." Tire industry investment threshold will increase.
However, the government's voice is not consistent. In order to create a so-called "industrial base," some local governments have not hesitated to introduce some surprisingly favorable policies for attracting investment, which has actually contributed to the tire industry's investment and expansion of the production boom. Not only Shandong, but from the national perspective, behind the “control†and “expansion†of tire production capacity, there is almost a shadow of government. From time to time, local governments have used the promotion of tire industry development to build various projects, bases, industrial parks, etc., and sometimes even jump out of their own to do "development" planning for the company.
The new government stated that the core issue of the economic system reform is to handle the relationship between the government and the market. When there is a problem in the market, will the government be able to specify the direction for the company and the market? Is the government's decision making smart? Obviously, the "government-led" actual effect on the development of the tire industry, how long this condition can be maintained, is a question worthy of serious consideration.