On Monday 4 June, the European Commission opened an expiry review of the anti-dumping measures applicable to imports of bicycles originating in the People's Republic of China, thus responding to a request for review lodged in early March by the European Bicycle Manufacturer's Association (EBMA) on behalf of EU bicycle producers representing more than 45% of the total European Union production of bicycles.
Stating that the expiry of the measures would be likely to result in continuation or recurrence of dumping and injury to the EU industry, EBMA demands a five-year prolongation of the 48.5% customs duties on Chinese bicycles that are due to expire this Wednesday.
In May 2013, these duties were extended to imports of bicycles from Indonesia, Malaysia, Sri Lanka and Tunisia, then in May 2015 to those from Cambodia, Pakistan and the Philippines, to avoid circumvention of the duties by Chinese exporters through these countries.
The duties will remain in place until the Commission completes its investigation, in 15 months at the latest.
On Monday, EBMA hailed the EU's decision, saying that the lifting of the anti-dumping duties targeting the imports of Chinese bicycles to the USA and Japan had wiped out national producers.
In a lengthy defence, EBMA says that Chinese prices for energy, metal and chemicals are distorted and that international benchmarks should be used to calculate a fair price for Chinese bicycles.
EBMA says that the Chinese 13th five-year plan provides for a consolidation of the Chinese bicycle industry to create national and international champions. Furthermore, it says that the largest Chinese bicycle manufacturer, Fushida, receives massive central and local government subsidies, fuelling its production overcapacities, which exceed total EU demand.
In 2017, the annual Chinese bicycle production capacities were approximately 130 million bicycles compared with total worldwide demand of 120 million bicycles.
Chinese exports of bicycles to the EU have increased from nearly 1.44 million units in 2016 to 1.66 million units, mainly due to a rise in bicycle exports intended for self-service, which are of poor quality. At the same time, sales of bicycles in the EU decreased from 19.67 million units in 2016 to 18.5 million units in 2017. (Original version in French by Emmanuel Hagry)