On the eve of Christmas 2011, a judgment from the United States Federal Circuit Court of Appeals (CAFC) fundamentally confirmed that the US Department of Commerce (DoC)'s anti-dumping and anti-subsidy investigations against Chinese export companies were "illegally illegal." In the case of "GPX International Tire Company and Hebei Xingmao Tyre Co., Ltd. v. US Government Case" (hereinafter referred to as "Project Tire Case"), the United States Federal Circuit Court of Appeals issued a judgment: Government financial assistance under non-market economy conditions, not Can be considered as a subsidy, "Anti-subsidy laws are not applicable to non-market economy countries."

This means that China Tire won the US Department of Commerce. From the analysis of the “Coach Game” platform, we can see that China’s tire companies have won a favorable external environment for the domestic tire trade. China has the second largest number of cars in the world, the largest number of cars in the world, and has a strong demand for tires. Therefore, there is a great opportunity for the tire industry.

The opportunities in the Chinese tire industry mainly come from two aspects:

The first is a better industry environment. Judging from the behavioral analysis, China has become a big country for tire production. Not only does the government support the development of the company, but the relevant companies have already started to work hard in the fight for a fairer trading environment. A better investment environment for the industry is taking shape.

The data shows that the export destination of China's tire industry is still dominated by North America, but demand growth has begun to shift to Europe and Central and South America. According to the statistics of the global auto market in January-August 2011, the sales of automobiles in Europe and Central and South America have all increased significantly, which has led to a significant increase in the demand for tires in these regions. Now that Chinese tire companies have won US lawsuits, the most important market in North America should have opened its doors to domestic companies.

On the other hand, China's investment policy has changed. The government treats Chinese companies and foreign-funded enterprises equally, making foreign tire companies that have received super-national treatment frustrated. The best example of this is South Korea’s Kumho tires. The domestic and international industry environment of Chinese tire companies is gradually improving rapidly. Therefore, there is a large investment opportunity in the tire industry that deserves attention.

From the perspective of funding preference, tire listed companies belong to the consumer durable goods industry, the industry cycle is lower than the auto fluctuations, and the performance is relatively stable, which has always been valued by the stable investors. Once the industry environment is expected to turn faster, it will certainly attract them to use funds to enter the market.

The second is the huge amount of domestic car ownership. China now has the world’s second largest car market. According to the latest data released by the Traffic Management Bureau of the Ministry of Public Security, as of the end of August 2011, the number of motor vehicles in the country reached 219 million vehicles. Among them, motorcycles accounted for 54.12%, accounting for approximately 119 million vehicles. The number of motor vehicles accounted for 45.88% of the total number of motor vehicles, and just over 100 million vehicles.

There is no doubt that such a large number of vehicle ownership has made China a world leader in the manufacture of tires, with an annual output of 420 million sets, accounting for one-third of the world's total tire production. According to statistics, by 2015, China's tire production will increase to 570 million units. At the same time, the global tire manufacturing industry is shifting to the Asia-Pacific region with a clear trend, which will benefit domestic high-quality tire companies in the long term. Therefore, the tire industry deserves long-term attention from investors.