China’s rubber industry needs to change its thinking and should base itself on the domestic market

The 16th Shanghai Derivatives Market Forum, sponsored by Shanghai Futures Exchange and Shanghai Financial Work Bureau, was held in Shanghai International Conference Center from 27 to 29 May. The theme of this forum is “serving entities for 20 years, creating the future through reform and opening up”.

On May 29, Zheng Wenrong, the full-time vice president of China Natural Rubber Association, attended the 16th Shanghai Derivatives Market Forum and delivered a speech on the theme of “China Natural Rubber Supply Situation and Prospects”.

In his speech, Zheng Wenrong said that the external environment for China’s development has undergone tremendous changes. Because it used to export a lot, and the peripheral market is also hoping to get China’s cheap and good products, but the wind has completely changed. Therefore, China’s export-oriented development environment has undergone tremendous changes, so the rubber industry in China needs to change its thinking and should be based on the domestic market. The cost of financing in Britain and the United States, the decline in automobile sales and the increase of international trade friction all pose great challenges to the rubber industry. But there are also great opportunities in the face of challenges.

He believes that China’s economy has embarked on a channel of transformation and upgrading. Although car sales are declining, car ownership is the first in the world, and the demand for rubber replacement products has maintained a very large growth. In this case, the rubber industry should reflect and seize this opportunity.

“First, we must pay attention to quality. Although many tires are safe and of good quality, we still buy Michelin and Goodyear instead of Chinese brands, which shows that we have a long way to go in brand promotion and quality construction. Second, everything depends on innovation. In the future, all enterprises must change from a manufacturer to a service provider. Only high-quality service can make a very good company. Zheng Wenrong said.