Jan-Willem van Schaik
Published: 03 Sep 2024Last update: 19 Dec 2024
BRUSSELS, Belgium – The European Commission launched an expiry review of the anti-dumping measures applicable to imports of bicycles from the People’s Republic of China. For this review DG Trade will hold hearings, mail questionnaires to producers and visit companies. The request was submitted by the EBMA (European Bicycle Manufacturers Association) representing the bicycle industry in Europe.
In the request, EBMA argued that using domestic prices and costs in China is inappropriate due to the presence of significant distortions of the basic Regulation. To support these claims, EBMA cited information from the Commission Staff Working Document on Significant Distortions in the Economy of the PRC for Trade Defence Investigations published last April.
Improving international market share
For many years the e-bike and bicycle industry is regarded as of significant importance by the Chinese government. “It is directly governed by the ’14th 5-Year Plan for Bicycles and Electric Bicycles,’ which mandates centralised reforms to manage the industry’s development. This plan also sets goals for maintaining strong export volumes and improving the international market share of Chinese bicycle producers through supportive policies, including the provision of special funds,” write the European Commission in the notice of initiation of an expiry review published in the Official Journal of the European Union on 29 August.
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Anti-dumping measures on regular bicycles imported from China have been in place for 31 years. The first measures became effective on 9 September 1993. If the Commission agrees to an extension of the measures they will stay in place for another term of 5 years. “We are very pleased with the publication of the opening of the expiry review,” writes EBMA in a reaction. “It means that the EU Commission took our concerns that a removal of the anti-dumping measures would severely hurt our industry and is willing to investigate this matter thoroughly.”
E-bikes also under review
In January of this year, and also on request of the EBMA, the European Commission initiated an expiry review of the current anti-dumping measures for e-bikes. Europe’s e-bike industry is currently not hampered by price dumping from China, However, EBMA provided the EU-Commission ‘sufficient evidence’ that, should measures be allowed to lapse, the current level of e-bike import volumes to the Union is likely to increase due to the exporting producers’ vast and expanding manufacturing facilities and the already substantial unused capacity in China. EBMA stressed that “it was easy for Chinese exporting producers to increase their EU market presence extremely fast.”
Adverse effects on EU industry
The European Commission DG Trade decided to initiate this expiry review for bicycles after EBMA “provided sufficient evidence that imports of the product under review from the country concerned to the Union have remained significant and even increased in absolute terms and in terms of market shares. The volume and the prices of the imported product under review have had a negative impact on the quantities sold, the level of prices charged, resulting in substantial adverse effects on the overall performance and the financial situation of the European Union’s industry.”
In case the current measures would be allowed to lapse EBMA expects a further injury to the European industry as the current import level of bicycles is likely to increase due to the existence of the significant unused capacity of the manufacturing facilities of the producers in China and the attractiveness of the Union market.
Investigation period
The European Commission will now conduct a 12- till 15-month long investigation to decide whether to extend the anti-dumping measures for another 5-year period. While the investigations are ongoing, the current anti-dumping measures remain in place. Depending on the outcome, the EU Commission can decide for another 5-year term of antidumping on Bicycles from China.
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The European Commission has invited all the interested parties to submit their comments, information and evidence in support of the application. This information and evidence must be sent to the European Commission within 37 days of the date of publication of the notification.
The Commission address for correspondence is:
European Commission
Directorate-General for Trade
Directorate G
Office: CHAR 04/039
1049 Bruxelles/Brussel
Belgium